The appropriate discount rate for the following cash flows is an 8 percent APR compounded quarterly.Year Cash Flow123$9301,01001,600What is the present value of the cash flows?Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.Present value

The PV of an investment refers to the combined worth of the cash flows of the investment assuming…

The appropriate discount rate for the following cash flows is an 8 percent APR compounded quarterly. Year Cash Flow 1 $ 930 2 1,010 0 1,600 3 What is the present value of the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value

The appropriate discount rate for the following cash flows is an 8 percent APR compounded quarterly. Year Cash Flow 1 $ 930 2 1,010 0 1,600 3 What is the present value of the cash flows? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Present value

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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Suppose $1,200 is deposited into an account which has an annual percentage rate of 9.81% per year. Assume it remains in the account for 18 years and no additional money is added to the account other than interest. (a) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, of assuming interest is compounded annually. Do not round any values. You can enter arithmetic expressions (containing +, -, *, /, or ^) in any of these boxes. Number 1200 •( Number What is the value in year x = 18 of an investment of $1,200 dollars which pays 9.81% compounded annually? $ Number (Round to the nearest 0.01 dollars) (b) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, assuming interest is compounded weekly (52 times per year). Do not round any values. You can enter arithmetic expressions (containing +, –, *, /, or ^) in any of these boxes. Number 1200 ( Number What is the value in year x = 18 of an investment of $1,200…
What is the present value of a $1,300 payment made in five years when the discount rate is 10 percent? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Present value
A one-year discount factor Z(0, 1) is at 0.999 and a two-year discount factor Z(0, 2) is at 0.99. The quarterly - compounded forward rate f 4 (0, 1, 2) equals to A. 0.905% B. 0.907% C. 1.810% D . 1.812% E. None of A to D is correct
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Suppose you make equal quarterly deposits of $2,500 into a fund that pays interest at a rate of 5% compounded monthly. Find the balance at the end of year 3. Hint: You will need an effective interest rate in your calculations. As a proportion, round this value to 4 places after the decimal when you use this in subsequent calculations. Note: Note: When entering your answer, do not use any dollar symbols or any other units. Enter only the value rounded to the nearest integer (nearest dollar). Also, for longer values, do not use any commas.
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What is the value in year 15 of a $260 cash flow made in year 4 if interest rates are 12 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Manually calculate the compound amount and compound interest for the following investment. Round your answers to the nearest cent. Do not round intermediate calculations. Time Nominal Interest Compound Compound Principal Period (years) Rate (%) Compounded Amount Interest $4,000 2 annually
Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Nominal Interest Compound Compound Principal Period (years) Rate (%) Compounded Amount Interest $5,100 8 quarterly Need Help? Read It
Calculate the present value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Future Value $ 8,900 5,900 4,900 Interest Compounded 4% Annually 10% Semiannually 8% Quarterly Annual Rate Period Invested 3 years 6 years 2 years Present Value
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