What is the present value of annual deposits of 2000TL made to an account for 12 years at i:0.25, and another period of recent 8 years with 3000 ati:0.20 up until 2 years ago?a.less than 200 000TLO b. between 200 001 - 400 000TLO c.between 400 001 – 900 000TLO d. between 900 001 – 1 500 000TLOe.more than 1 500 001 TL

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What is the present value of annual deposits of 2000TL made to an account for 12 years at i:0.25, and another period of recent 8 years with 3000 at i:0.20 up until 2 years ago? O a. less than 200 000TL O b. between 200 001 - 400 000TL between 400 001 – 900 000TL O d. between 900 001 – 1 500 000TL O e. more than 1 500 001 TL

What is the present value of annual deposits of 2000TL made to an account for 12 years at i:0.25, and another period of recent 8 years with 3000 at i:0.20 up until 2 years ago? O a. less than 200 000TL O b. between 200 001 - 400 000TL between 400 001 – 900 000TL O d. between 900 001 – 1 500 000TL O e. more than 1 500 001 TL

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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A) The future value at the end of the final year if deposits are made at the end of each year is $ (blank). (Round to the nearest dollar.) B) The future value at the end of the final year if deposits are made at the beginning of each year is $ (blank). (Round to the nearest dollar.)
a. What amount could be withdrawn at t=10? b. What uniform annual series deposits (n=10) would result in the same accumulated balance at the end of year 10?
Compute the future values of the following annuities first assuming that payments are made on the last day of the period and then assuming payments are made on the first day of the period: (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payment $ 183 5,155 75,084 167,932 Years 13 8 5 9 Interest Rate (Annual) 12% 11 13 4 Future Value (Payment made on last day of period) 4 Future Value (Payment made on first day of period)
The current amount A of a principal P invested in a savings account paying an annual interest rate r is given by A = P(1+r/n)^(rt) where n is the number of times per year the interest is compounded. For continuous compounding, A = Pe^(rt). Suppose $10,000 is initially invested at 2.5 percent (r = 0.025). a. Plot A versus t for 0 ≤ t ≤ 20 years for four cases: continuous compounding, annual compounding (n = 1), quarterly compounding (n = 4), and monthly compounding (n = 12). Show all four cases on the same subplot and label each curve. On a second subplot, plot the difference between the amount obtained from continuous compounding and the other three cases. b. Redo part a, but plot A versus t on log-log and semilog plots. Which plot gives a straight line?
What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67) Year 0 cash flow = 2000 Year 1 cash flow = 1700 Year 2 cash flow = 700 Year 3 cash flow = 900 Answer: کے
correct answer are PV= 2,276.55 and A = 4,724.73 No tables, only formulas, please Find the present value and the accumulation at the end of 10 years of a series of payments that are made up by: £200 annually in arrears during the first 3 years, £35 monthly in arrears thereafter, given that the following interest rates apply: 9% per annum effective for the first 5 years, 6% per annum nominal convertible monthly thereafter.
Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. Future Value $50,000 7.8% $225,000 6.9% $200,000 6.5% $275,000 3.9% $125,000 5.2% r compounding frequency annually semiannually quarterly monthly weekly time in years 6 15 10 $ 11 $ 13 $ periodic deposit (m) $ interest earned
Solve for the unknown number of years in each of the following: (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present Value $ $ GA 195 2,105 47,800 38,650 Years Interest Rate 8 % 11 10 15 $ $ $ $ Future Value 873 3,500 326,500 213,380
3. DETAILS ZILLDIFFEQMODAP11 3.1.010. (b) In how many years will the initial sum deposited have doubled? (Round your answer to the nearest year.) years Need Help? When interest is compounded continuously, the amount of money increases at a rate proportional to the amount S present at time t, that is, ds/dt = rs, where r is the annual rate of interest. (a) Find the amount of money accrued at the end of 7 years when $3000 is deposited in a savings account drawing 5 % annual interest compounded continuously. (Round your answer to the nearest cent.) $ (c) Use a calculator to compare the amount obtained in part (a) with the amount S = 3000 1 + S = $ Read It 7(4) 3000(1+1(0.0575)) (*) MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER that is accrued when interest is compounded quarterly. (Round your answer to the nearest cent.)
K t 1 ences Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final answers to the nearest whole dollar.) Annual Deposit Rate of Return $ $ $ $ 1,200 1,200 1,200 1,200 4% 7% 6% 9% Number of Years 10 10 30 30 Investment Value at the End of Time Period Total Amount of Investment Total Amount of Earnings
Listen The future value of $100 deposited today (assuming positive interest rates and a time difference between the present and the future): 1) will always be less than $100. 2) will always be equal to $100. 3) will always be greater than $100. depending on the exact interest rate and on the precise amount of time difference between the present and the future, can be less than $100, greater than $100, or equal to $100. 5) None of the statements above are correct. 4)
Present Value of Amounts Due Assume that you are going to receive $730,000 in 10 years. The current market rate of interest is 4.5%. a. Using the present value of $1 table in Exhibit 5, determine the present value of this amount compounded annually. Round to the nearest whole dollar. b. Why is the present value less than the $730,000 to be received in the future? The present value is less due to the compounding of interest V over the 10 years.

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