Future values. Fill in the future values for the following table, using one of the three methods belowa. Use the future value formula, FV= PV×(1+nb. Use the TVM keys from a calculatorc. Use the TVM function in a spreadsheet,Present ValueInterest RateNumber of PeriodsFuture Value222.003%$539 Round to the nearest cent)

Future value is the value of current asset or investment at a future data based on assumed rate of…

Answered: Future values. Fill in the future…

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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Task: Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount x, is due at the end of the rth year. Let the effective annual interest rate for the rth year be i,. Give an identity which expresses L in terms of the x, and i,. Answer: The identity is [ Select ] [ Select ] L = x_1 (1+i_1)^(-1) + x_2 (1+i_1)^(-1) (1+i_2)^(-2) + .. + x_n (1+i_1)^(-1) (1+i_2)^(-2) ... (1+i_n)^(-n) L = x_1 (1+i_1) + x_2 (1+i_1) (1+i_2) + ... + x_n (1+i_1) (1+i_2) ... (1+i_n) L = x_1 (1+i_1)^(-1) + x_2 (1+i_1)^(-1) (1+i_2)^(-1) + .. + x_n (1+i_1)^(-1) (1+i_2)^(-1) ... (1+i_n)^(-1) Question 3 L = x_1 (1+i_1) + x_2 (1+i_1) (1+i_2)^2 + ... + x_n (1+i_1) (1+i_2)^2 ... (1+i_n)^n
2) the math of interest. please indicate if you are unsure or totally sure about the answer
Find the present worth sum of money that would be equivalent to the future amounts of $5000 in year 6 and $7000 in year 8 if the real interest rate is 10% per year and the inflation rate is 5% per year. Solve using the factors and their equations with (a) an inflation-adjusted rate, and (b) the real interest rate. Solve manually please
For each case, provide the missing information. Assume payments occur at the end of each period. (Use the present value and future value tables, the formula method, financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places X.XXXXX. Round all final answers to the nearest cent, $X.XX, and round the loan maturity date to the nearest whole year.) (Click the icon to view the cases.) Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Cases Amount borrowed Interest rate Number of periodic payments per year Maturity (in years) Periodic payment (1) (a) 4% 4 10 $ 10,354.90 (2) $ 675,000 $ 4% 2 10 (b) S CO (3) 456,000 6 % 1 (c) 81.685.59 (4) $ 750.000 12 % T (d) I X
In the time diagram below, which of the following concepts is depicted? 0 PV $1 2 $1 3 $1 O Present value of an annuity due O Future value of an ordinary annuity Present value of an ordinary annuity Future value of an annuity due 4 $1
nnuity. Fill in the missing present values in the following table for an ordinary annuity: Future Value ate Data Table (Click on the following icon O in order to copy its contents into a spreadsheet) it Valuo $298 01 S3.396 92 S615 39 $2.459 07 6% 12% 2.5% 07% 18 0. 27 260 0. Print Done Check A
Use future value and present value calculations (an online calculator, app, financial calculator, or spreadsheet software) to determine the following: Use Exhibit 1-A, Exhibit 1-B and Exhibit 1-C. a. The future value of a $710 savings deposit after nine years at an annual interest rate of 8 percent. Note: Round FV factor to 3 decimal places and final answer to nearest whole dollar. b. The future value of saving $3,200 a year for three years at an annual interest rate of 7 percent. Note: Round discount factor to 3 decimal places and final answer to nearest whole dollar. c. The present value of a $3,400 savings account that will earn 4 percent interest for six years. Note: Round PV factor to 3 decimal places and final answer to nearest whole dollar. a. Future value b. Future value c. Present value
Consider two assets with the following cash flow streams: Asset A generates $4 at t=1, $3 at t=2, and $10 at t=3. Asset B generates $2 at t=1, $X at t=2, and $10 at t=3. Suppose X=6 and the interest rate r is constant. For r=0.1, calculate the present value of the two assets. Determine the set of all interest rates {r} such that asset A is more valuable than asset Draw the present value of the assets as a function of the interest rate. Suppose r=0.2. Find the value X such that the present value of asset B is 12. Suppose the (one-period) interest rates are variable and given as follows: r01=0.1,r12=0.2, r23=0.3. Calculate the yield to maturity of asset A. (You can use Excel or ascientific calculator to find the solution numerically.)
According to the quantity theory and the Fisher equation, if the money growth increases by 3 percent and the real interest rate equals 2 percent, then the nominal interest rate will increase: I need typing clear urjent no chatgpt use i will give 5 upvotes full explanation plss
Use a calculator to evaluate the present value of an annuity formula 1-(1+ 4) -nt P = m for the values of the variables m, r, and t (respectively). Assumen= 12. (Round your answer to the nearest cent.) $50; 5%; 7 yr %24
Future Value of an Annuity Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. $600 per year for 10 years at 14%. $ $300 per year for 5 years at 7%. $ $600 per year for 5 years at 0%. $ Now rework parts a, b, and c…
Calculate the arithmetic average of the following returns. Year Return1 0.12 20.16 3 0.24 4 0.13 50.02 Enter the answer with 4 decimals, e.g. 0.1234.

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