Cash flow X has streams of cash flow of RM1,350 per year indefinitely. With 14% interest rate, what is the current amount?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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hi there tutors! im here to cure my doubts.

i hv ques to ask. please helo solve.

fundamentals of finance

state fornula needed for each then calculate

Required:

  • Cash flow X has streams of cash flow of RM1,350 per year indefinitely. With 14% interest rate, what is the current amount?
  • Damak’s cash in the bank has multiplied to as much as RM2,050.11 after 1 year. Assuming the interest rate is 5% compounded monthly, what is the interest earned?
  • Koh was examining an investment that will to pay RM150 at the end of each year for the next 8 years. If Koh wants to earn 8% annually on his money, how much would he pay for this annuity? If the payment is made at the beginning of each year, how much would he contribute then?

thats all. tutor, i hope for correct & precise calculations. thank you!

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