AV if ō is given$100 is lent for 5 years amd repaid in a single payment at the end of the 5 years. Calculate the amountof the payment if the the force of interest ō is 7%.(use a decimal number rounded to the 100th, in dollar amount without $ sign. For example 123.45)==An account credits interest at a 3% annual constant force of interest. How many years are required foran investment to triple? (use decimal number rounded to the 100th, such as 11.55)===Fund A earns a 7% force of interest.Jack deposited $250 into Fund A. What is Fund A's value at the end of first year from his initial deposit?(use a decimal number rounded to the 100th, in dollar amount without $ sign. For example 123.45)===Fund A earns a 7% force of interest. Fund B earns a 9% force of interest.Jack deposited $250 into Fund A. After one year, he withdrew everything from Fund A and deposited itinto Fund B.What is Fund B's value at the end of four years from his initial deposit?(use a decimal number rounded to the 100th, in dollar amount without $ sign. For example 123.45)The force of interest in the first year is 6%. The effective rate of interest in the second year is 5%. Thenominal rate of discount compounded semiannually in the third year is 4%. Determine the accumulatedvalue of $100 at the end of three years.(use a decimal number rounded to the 100th, in dollar amount without $ sign. For example 123.45)

We are given Present value=100 Rate=7% number of years=5 We have to calculate future worth of that…

Answered: $100 is lent for 5 years amd repaid in…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...

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You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
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$100 is lent for 5 years amd repaid in a single payment at the end of the 5 years. Calculate the amount of the payment if the the force of interest ō is 7%. (use a decimal number rounded to the 100th, in dollar amount without $ sign. For example 123.45) ==