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- For each of the following, compute the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)Question: Compute the future value of a $105 cash flow for the following combinations of rates and times.&n... (2 bookmarks) Compute the future value of a $105 cash flow for the following combinations of rates and times. (Do not round intermediate calculations. Round your answers to 2 decimal places.) a. r = 8%; t = 10 years b. r = 8%; t = 20 years c. r = 4%; t = 10 years d. r = 4%; t = 20 yearsConsider 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.)
- The value of a good rises by 13% in a year. If it was worth 6.5 million at the beginning of the year, find its value at the end of the year? Select one: O a 7.345 O b. 5.7522 O c. 5752212.389 O d. 7345000 O e. None of the aboveQuestion 3 (at home, to practice) The following banks all offer 20-year Certificates of Deposits* (CDs), but at the following, different, conditions: Bank A: Bank B: Bank C: Bank D: Bank E: 10 percent per year compounded annually 9.8 percent per year compounded semiannually 9.6 percent per year compounded quarterly 9.5 percent per year compounded monthly 9.4 percent per year compounded daily Francesca has inherited £150,000. She decides to invest the money in the 20-year Certificate of Deposit offered by Bank E. If, instead, Francesca had invested her money in the bank with the CD offering the best rate, how much more money would she have had after 20 years? First write down the formulae you need to use to do the calculations. Then, solve numerically using a calculator or Excel.None
- Question 1 At a certain discount rate the present values of the following cash flows are equal: (a) 808 at the end of 4 years (b) 426 at the end of 4 years plus 1000 at the end of 8 years At the same discount rate, find the net present value of 100 deposited now, 200 deposited in 4 years and a withdrawal of 128 at the end of 8 years. A The answer does not appear here B.819.94 OC 157.72 D. 195.08 E 1090 R4NoneFor each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value $ 1,900 8,052 69.355 176.796 Years 6 7 Interest Rate 12 % 10 % 11 % Future Value