Intro Find the present values of these annuities due. Part 1 What is the present value of $6,000 per quarter for 8 years with an annual interest rate of 6% (APR with quarterly compounding)? 0+ decimals Submit Intro You took out a loan to buy a new car. The monthly interest rate on the loan is 2%. You have to pay $240 every month for 60 months. Part 1 What is the present value of the cash flows if it's an annuity due? 0+ decimals Submit Intro You just turned 20 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $100,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 8% on your investments every year. Part 1 What is the total present value (as of your 65th birthday) of the withdrawals you expect to make in retirement? 0+ decimals Submit

Intro Find the present values of these annuities due. Part 1 What is the present value of $6,000 per quarter for 8 years with an annual interest rate of 6% (APR with quarterly compounding)? 0+ decimals Submit Intro You took out a loan to buy a new car. The monthly interest rate on the loan is 2%. You have to pay $240 every month for 60 months. Part 1 What is the present value of the cash flows if it's an annuity due? 0+ decimals Submit Intro You just turned 20 years old and want to retire when you turn 65. You expect to live for 25 years after retirement and want to withdraw $100,000 per year in retirement, starting on your 65th birthday. You expect to earn a return of 8% on your investments every year. Part 1 What is the total present value (as of your 65th birthday) of the withdrawals you expect to make in retirement? 0+ decimals Submit

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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Direction: Solve manually, use 5 decimal in interest rate, and draw the cash flow diagram. A woman is considering giving an endowment to a university in order to provide payments of P5000 and decreasingly by 4% at the end of each quarter during a year. If interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bi-monthly payment can be repeated forever?
Its one question only ple do both parts
Tutorial Exercise Suppose that your bank pays 6% interest, compounded quarterly. Use Table 12-2 to find how much should be deposited now to yield an annuity payment of $1,600 at the end of each three months, for 3 years. Step 1 The present value of an annuity is the amount needed now so that desired annuity payments may be made in the future. Since payments will be made at the end of each three months, this is an ordinary annuity. To find the present value of this annuity, the amount of money that should be deposited in an account now, the interest rate per period must first be found. The interest rate per period is calculated using the nominal, or annual, rate and the number of periods per year as follows. nominal rate interest rate per period = periods per year The rate was given to be 6%. Interest is compounded quarterly, or 4 times per year. Find the interest rate per period. nominal rate interest rate per period periods per year 4 |% The total number of compounding periods will be…
2.1 Explain the difference between a nominal interest rate and an effective interest rate. 2.2 A bank has quoted the interest rate on a loan at 15% compounded quarterly. Calculate the effective rate. 2.3 You need R70 000 in 6 years’ time in order to afford a new car. If you are able to earn interest at 8% compounded annually, how much do you need to invest today in order to afford the car? 2.4 If you had R30 000 today, at what annual interest rate would you need to invest your money in order to have the required R70 000 in 6 years’ time
2 ENGINEERING ECONOMICS: ANNUITY. Show complete solution and INCLUDE CASH FLOW DIAGRAM. Write legibly
What is the present value of a perpetual stream of cash flows that pays $70,000 at the end of year one and then grows at a rate of 5% per year indefinitely? The rate of interest used to discount the cash flows is 11%. Question content area bottom Part 1 The present value of the growing perpetuity is $ enter your response here . (Round to the nearest cent.)
et's calculate how much you borrowed to buy your classic Ford Bronco assuming you made payments of $6000.00 at the end of every six months for twelve years. If interest on the loan is 8% compounded quarterly, what was the principal of the loan? Question 10 options: $23 433.19 $201 323.86 $91 108.28 $19 108.28
Question 3 What is the future value four years from now of each of the following cash-flow streams if money can earn 5.25% compounded quarterly? the nearest cent. a) A single payment of $6,000 today. Future value = $ 0.00 b) An ordinary annuity with four annual payments of $1,700 and the first payment due a year from today. Future value = $ 0.00 your answer(s) should be rounded to
Question 2: Please draw the Cash Flow on the diagram. You Take a Loan to Buy an Apartment for : 100,000JD Interest Rate : 12.0% Loan Period : 30 years Down payment : 20% Registration Fees : 5% Selling Price @ year 30 : 900,000 JD Calculate the monthly payment=? Calculate the NPV.
1. Calculate the present value of each cashflow using a discount rate of 7%. Which do you prefer most? Show and explain all supporting calculations. a. Cashflow A: receive Php60 today and then receive Php60 in four years. b. Cashflow B: receive Php12 every year, forever, starting today. Cashflow C: pay Php50 every year for five years, with the first payment being next year, and then subsequently receive Php30 every year for 20 years. d. Cashflow D: receive Php9 every other year, forever, with the first payment being next C. year.

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