The cash flows shown in the table below occur every six months (bi-annually) and have a total present value of zero. If the interest rate is 2% annual interest compounded monthly, what is the value of A? Enter your answer as a positive number rounded to nearest dollar. Semi-annual cash flows 0 1 3 4 5 7 8 -$A -$A -$A -$A $0 $475 $950 $1425 475

Q: A series of quarterly cash flows occurs as shown in the chart below. At 9.125% interest, compounded…

A: NPV is the Net Present value It can be determined by calculating the present value of the cash flows…

Q: Sly, the amount of money increases at a rate proportional to the amount S present at time t, that…

A: When interest is compounded continuously, it means that it is added to the principal amount…

Q: 1. Consider the cash flow series shown below. Determine the required annual deposits (end of year)…

A: STEP 1:Here the given data is: -Money deposited in year 4 = $1000Money deposited in year 5 =…

Q: For the cash flows below determine the amount in  year 1, if the annual worth in years 1 through 9…

A: Annual Cash flow (CF) = $3500 Interest rate (r) = 0.10 Period (n) = 9 Years Amount in year 1 (P1) =…

Q: The appropriate discount rate for the following cash flows is 9 percent compounded quarterly. Year…

A: Present value of the cash flow refers to the discounted value of the future cash flow on the current…

Q: A series of cash flows are established on an account as listed below. Payment of P5,854 at the end…

A: Present Value: Given a certain rate of return, the present value (PV) of a future amount of money or…

Q: Consider the following three cash flow series: Determine the values of X and Y so that all three…

A: Cash flow for the series is computed using excel: Result is:

Q: You have cash flows of $100 at the end of year 1, $200 at the end of years 2 and 3, and $300 at the…

A: The problem requires the determination of the present value of the cash flows using discounting and…

Q: Question 2 If one makes quarterly deposit of $1250 into an account that pays interest at a rate of…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500…

A: Monthly withdrawals six years from now is $500 Time period of withdrawal is 5 years interest rate…

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: What is the present value of the combined cash flows?

A: Present Value: It represents the present value of the future cash flow stream.  It is computed by…

Q: With an interest rate of 6.5% p.a, compounded monthly, (i) Calculate the equivalent value of all…

A: Here we will have to use the concept of time value of money and determine the values at given points…

Q: Question 2: In the following cash flow, how much should be deposited at the beginning of year 1 so…

A: Calculate the present value (PV) of the cash flow in Year 1 (PV 1) by using the EXCEL PV function as…

Q: The table below shows a series of cashflows. At an interest rate of 10% per year, what are the…

A:

Q: Year 0-4: $2000 at EOY 0 and decreases $200 each year (cash outflow) Year 6-10: $C at EOY 6 and…

A: Cash flows refer to the net amount of funds that are being transferred in and out of the business…

Q: The rate of earnings is 10% and the cash to be received in three years is $10,000. Determine the…

A: Income statement: The income statement is one of the three primary financial statements used to…

Q: 3) For the transaction shown below, determine the amount of money in the account at the end of year…

A: Cash flow is a fundamental financial concept that represents the movement of money into and out of a…

Q: Question 2 If one makes quarterly deposit of $1250 into an account that pays interest at a rate of…

A: Quarterly Deposit = 1250 Interest Rate = 6% Compounded monthly Time Period = 2 years or 8 quarters…

Q: Find the present worth of the cash receipts in the accompanying diagram if i = 8% compounded…

A: The present value is the present worth of future cash flows discounted at a rate of interest and…

Q: i= 12% 2 3 4 n-1 $500 -$700 $900 $1100 A

A: Interest rate = 12% Year Cash Flow 1 500 2 700 3 900 4 1100 5 1300 6 1500 7 1700…

Q: establish a "rainy day" cash reserve account, a certain company deposits $11,000 of its profit at…

A: Quarterly deposit are of $11,000 Interest rate is 1.85% Compounded quarterly To Find: Value of…

Q: The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent…

A: The Present Value of Cash flows are calculated by multiplying the Cash flows by discount factor of…

Q: If Norm had the following cash inflows and cash outflows over a 15-year period, and the account was…

A: FV=PV*(1+r)n

Q: Consider the following schedule: number of years 10; annual interest rate 6% Annual withdrawal of…

A: Given: Year With drawl Deposit 1 -$500 $10,000 2 -$500   3 -$500   4 -$500   5 -$500…

Q: Claudine Corporation will deposit $4,000 into a money market account at the end of each year for the…

A: Time value of money is a financial concept which is used to analyze various investments and…

Q: Find the equivalent present worth of the cash receipts in the accompanying diagram, where i = 8%…

A: We know that the formula to calculate the present value is I/(1+i)n, where I is the cash flow that…

Q: Given below are the future value factors for 1 at 10% for one to five periods. Interest is…

A:

Q: Determine the present value of the following cash flows; P4,000 at the end of 4th month and every…

A: Given information= P4000 at the end of 4th month and every month thereafter till the 12th Month…

Q: n                          Net cash Flow                             0…

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: Please break down step by step how the circled figure was calculated. How did they get 6.41766?…

A: It refers to the current worth or value of a sum of money to be received or paid in the future,…

Q: With cash flow diagram. What lump sum of money must be deposited into a bank account at present time…

A: Semi annual withdrawal = $ 1500 Number of withdrawals = 10*2 = 20 Annual interest rate = 12%…

Q: A cash flow of $1.5 is paid 360 times per year for the next 3 years. The NAR3 is 1.5%. What is the…

A: NAR stands for "Net Annual Rate." It is a financial metric used to represent the effective annual…

Q: olur? 06:031370160 i= %7.8 -%3,9 2 3 A=500 TL/yıl 2511 2887 2200 2776

A: Cash Outflows: Year Cash Flow 0 -500 1 -500 2 -500 3 -500 4 -500 Annual Interest…

Q: Find the present worth of the cash receipts in the accompanying diagram if i = 8% compounded…

A: Computation as follows: Hence, the value of P is $1181.89.

Q: If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: What is the future value of four cash flows of $500 to be received at the end of each of 4 years…

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Present value is the equivalent value of future money today based on time value of money and period…

Q: Gary King will deposit $27500 into an account today that earns 13% per year compounded annually.…

A: Given information: Principle amount = $27,500 Rate of interest = 13% Period = 5 years

Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: The future value is the amount that will be received at the end of a certain period. In simple…

Q: An amount of $8,430 is deposited into an account earning 7% interest compounded quarterly. How much…

A: There are different types of accounts which an individual can open in a bank. It can be a savings…

Q: If the rate of earnings is 12% and the cash to be received in two years is $20,000, determine the…

A: Present value amount = Cash to be received in two years x present value of $1 at compound interest…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.