Continuous compounding For the case in the following table, find the future value at the end of the deposit period, assuming that interest is compounded continuously at the given nominal annual rate. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The future value at the end of the deposit period is S. (Round to the nearest cent.) Amount of initial deposit $3,300 Nominal annual rate, r 15% Deposit period (years), n 6

Continuous compounding For the case in the following table, find the future value at the end of the deposit period, assuming that interest is compounded continuously at the given nominal annual rate. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The future value at the end of the deposit period is S. (Round to the nearest cent.) Amount of initial deposit $3,300 Nominal annual rate, r 15% Deposit period (years), n 6

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

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10. Compounding Annual Rates For each of the cases in the table below: › Calculate the future value at the end of the specified deposit period Frequency, Time Value, and Effective b) Determine the effective annual rate (EAR) for parts A, B, C, and D c) Compare the nominal rate, r, to the EAR. What relationship exists between compounding frequency and the nominal and effective rates? Part Initial deposit Nominal rate Compounding - r frequency 6% 10% 5% 5% A $5,000 B $75,000 C $2,000 D $2,000 2 4 12 Continuous Deposit period (years) 5 3 10 10 FV EAR $6,719.58 6.09 $80,693.33 10.38 $3,294.02 5.12 $3,297.44
Ajeet Construction Ltd is planning to take a project which initial cash outflow is 100000.The expected cash inflows from this are tk 40000, tk25,000, tk 20000,tk 35,000, & tk.35000. Calculate the NPV & IRR of this project, when rate of cost of capital is 15%.
Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded vwith the same frequency as the deposits. (Round your answer to the nearest cent.) Amount of Deposit Frequency Rate Time $100 monthly 6 yr Need Help? Read it Master Talk toa Tutor Watch t
Find the FUTURE VALUE in SIMPLE ANNUITY of each of the following scenarios where R is the regular payment and r is the interest rate. Round off your answers in two decimal places. Regular Compounding Time Future in Payment (R) r Frequency Value Years Php Php 4750 4% annually 6. Php 6.3% semiannually Php 2500 Php 14 quarterly 5.5% Php 1000
Consider the following cases: Amount of Compounding Initial Stated Annual Frequency, m Deposit Case Deposit ($) Rate, r (%) (times/year) Period (years) A 2,500 6 2 5 B 50,000 12 6 3 C 1,000 5 1 10 D 20,000 16 4 6 a. Calculate the future value at the end of the specified deposit period.
Find the periodic payment for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future compounding time periodic interest in Value frequency deposit (m) earned years $ $200,000 5% annually 10 12.5779 15905.29 $ $250,000 7.8% semiannually 11 34.6003 7225.43 $ $125,000 3.7% quarterly 15 120.3921 1038.46 $ $ $225,000 3% monthly 15 $ $175,000 7.5% weekly 12 A
Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposits. (Round your answer to the nearest cent.)$ Amount of Deposit m Frequency n Rate r Time t $250 semiannually 4% 30 yr
Find the value of the annuity at the end of the indicated number of years, Assume that the interest is compounded with the same frequency as the deposits. (Round your answer to the nearest cent.) Amount of Deposit Frequency Rate Time in $100 monthly 5% 8 yr Need Help? Read It Watch It Master It
Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of Deposit Frequency Rate Time t $100 quarterly 6% 25 yr %24
Find the value of the annuity at the end of the indicated number of years. Assume that the interest is compounded with the same frequency as the deposits. (Round your answer to the nearest cent.) 2$ Amount of Deposit Frequency Rate Time t $250 semiannually 2% 20 yr Need Help? Read It
The loan below was paid in full before its due date. (a) Obtain the value of h from the annual percentage rate table. Then (b) use the actuarial method to find the amount of unearned interest, and (c) find the payoff amount. Regular Monthly Payment $445.22 Remaining Number of Scheduled Payments after Payoff 6 APR 11.0% Click the icon to view the annual percentage rate table. (a) h=$ (b) The unearned interest is $ (c) The payoff amount is $ (Round to the nearest cent as needed.) (Round to the nearest cent as needed.)
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