ques 8 (Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $10,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $20,000 in the last year (period 15)? Assume an interest rate of 8percentThe amount of money you have to deposit today is $ (Round to the nearest cent.)C

Calculate the Present Value (PV) of the $10,000 annual withdrawals over 5 years, starting from year…

Answered: (Present value of complex cash flows)…

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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(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%?
(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $7,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $14,000 in the last year (period 16)? Assume an interest rate of 6 percent. The amount of money you have to deposit today is $ ☐ (Round to the nearest cent.)
( Present value of complex cash flows ) How much do you have to deposit today so that beginning 11 years from now you can withdraw $ 8,000 a year for the next 7 years ( periods 11 through 17 ) plus an additional amount of in the last year ( period Assume an interest rate of 9 percent . \$16.000; 17)? The amount of money you have to deposit today is ( Round to the nearest cent . )
(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $13,000 a year for the next 7 years (periods 11 through 17) plus an additional amount of $26,000 in the last year (period 17)? Assume an interest rate of 7 percent. The amount of money you have to deposit today is (Round to the nearest cent.) www
(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $24,000 in the last year (period 15)? Assume an interest rate of 12 percent. The amount of money you have to deposit today is Vis S COLLE (Round to the nearest cent)
You deposit $1,000 today, $3,000 two years from now, and $5,000 five years from now. How much money will you have at the end of year 5 if the annual compound interest rates for each year are predicted to be different and shown in the table below. Draw the cash flow diagram to illustrate your results. Year Interest rate 1 5% IT 2 10% 3 15% 4 15% 5 17%
Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $14,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $28,000 in the ast year (period 15)? Assume an interest rate of 11 percent. The amount of money you have to deposit today is $ (Round to the nearest cent.) ...
You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest rate is 14.61%, how much are these cash flows worth today? Answer:
What lump sum would have to be deposited today into an account bearing interest of 10% per year to provide withdrawals of $1000 at 8,9,10,11 years from today? (provide cash flow diagram with solution) please provide the cash flow diagram and explain your answer.
How much must be deposited today into an account earning 3% interest annually to support annual withdrawal of $1550 a year in perpetuity? b) What if the first withdrawal starts at the end of year 5? Use factor method or interest formulas and draw cash flow diagram
Consider the following cash flows: Year Cash Flow 2 $ 22,900 3 40,900 5 58,900 Assume an interest rate of 9.7 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
much is it worth? (See Problem 1.) Future Value with Multiple Cash Flows You plan to make a series of deposits in an interest-bearing account. You will deposit $1,000 today, $2,000 in two years, and $8,000 in five years. If you withdraw $3,000 in three years and $5,000 in seven years, how much will you have after eight years if the interest rate is 9 percent? What is the present value of these cash flows? (See Problem 3.) 5.2 You ore loking into an inyestment that will pay you

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