Compute the present value of $4,800 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year. (Do not round intermediate calculations and round your answer to 2 decimal places.) Future value 4,800 Number of years Interest rate first year Interest rate second year 2 8.00% 7.00% Complete the following analysis. Do not hard code values in your calculations. Value two years from today Value one year from today Present value

Compute the present value of $4,800 paid in two years using the following discount rates: 8 percent in the first year and 7 percent in the second year. (Do not round intermediate calculations and round your answer to 2 decimal places.) Future value 4,800 Number of years Interest rate first year Interest rate second year 2 8.00% 7.00% Complete the following analysis. Do not hard code values in your calculations. Value two years from today Value one year from today Present value

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

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

COMPARING INTEREST COST. You currently have a credit card that charges 18.99% interest. You receive an offer for a new credit card with a teaser rate of 9.99% for the first 6 month...after that the rate goes up to 24.99%. 14a) What is the total annual interest on the current credit card? 14b) What will be the interest in the first year after you switch? 14C) Should you switch? why?
What is the present value of $3,000 to be received 2 years from now, if the discount rate is: (a) 6%, (b) 10%, and (c) 13% ? 1. Use the appropriate table (Appendix C: Table 1) to answer the above questions. 2. Use the formula shown at the bottom of Appendix C. Table 1, to answer the above questions. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Use the formula shown at the bottom of Appendix C, Table 1, to answer the above questions, (Round "PV Factor" to 5 decimal places and "PV values" to 2 decimal places.) Future after-tax cash Bow Cash flow received at the end of year (a) (b) [(0) Answer is complete but not entirely correct. Rate 6% 10% 13% PV Factor 0.89000 $ 0.82645 $ 0.78315 S PV < Required 1 7,553 18,406 2,669.99 2,479.34 2,349 44 **
Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Do not round intermediate calculations. Round your answers to the nearest cent. a. An initial $800 compounded for 1 year at 9%. $ b. An initial $800 compounded for 2 years at 9%. $ c. The present value of $800 due in 1 year at a discount rate of 9%. $ d. The present value of $800 due in 2 years at a discount rate of 9%. $
Determine the amount of money in a savings account at the end of 4 years, given an initial deposit of $13,000 and a 4 percent annual interest rate when interest is compounded: Use Appendix A for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a. Annually b. Semiannually c. Quarterly Future Value
You are quoted an interest rate of 6% on an investment of $10 million. What is the value of your investment after four years if interest is compounded as follows? Note: Enter your answers in dollars, not millions of dollars. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. a. Annually b. Monthly c. Continuously a. Future value b. Future value c. Future value
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $300 per year for 8 years at 10%. $ $150 per year for 4 years at 5%. $ $200 per year for 4 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $300 per year for 8 years at 10%: $ Future value of $150 per year for 4 years at 5%: $ Future value of $200 per year for 4 years at 0%: $
You expect to have the given amount in an account with the given terms. Find how much you can withdraw periodically in order to make the account last the specified amount of time. Round your answer to the nearest cent. Account balance: $600,000 Interest rate: 4.85% Frequency:monthly Time: 17 years
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $300 per year for 14 years at 8%. $ $150 per year for 7 years at 4%. $ $1,000 per year for 7 years at 0%. $ Rework previous parts assuming they are annuities due. Present value of $300 per year for 14 years at 8%: $ Present value of $150 per year for 7 years at 4%: $
← Suppose you start saving today for a $45,000 down payment that you plan to make on a house in 6 years. Assume that you make no deposits into the account after the initial deposit. For the account described below, how much would you have to deposit now to reach your $45,000 goal in 6 years. An account with daily compounding and an APR of 4% D You should invest $ (Do not round until the final answer. Then round to two decimal places as needed.)
An investment will pay you $86, 000 in three years. Assume the appropriate discount rate is 7.5 percent compounded daily. What is the present value? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. a. $800 per year for 16 years at 12%. $ b. $400 per year for $ c. $500 per year for $ years at 6%. years at 0%. d. Rework previous parts assuming they are annuities due. Present value of $800 per year for 16 years at 12%: $ Present value of $400 per year for 8 years at 6%: $ Present value of $500 per year for 8 years at 0%: $
Compound Interest Applications Use the TVM Calculator to solve the following compound interest problem. Round your result to two decimal places as needed. Meri invests $12, 000 in an account. The interest is compounded monthly for 18 years. The account balance will be $92, 501.14 at the end of 18 years. What is the annual interest rate? The annual interest rate is %.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS