Question

1a. What is the present value of the following set of cash flows
if the discount rate is 13.9%? (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 = -1400 (a negative cash flow)

Year 1 cash flow = 400

Year 2 cash flow = 2400

Year 3 cash flow = 1100

Year 4 cash flow = 2400

**Answer:**

1b. A credit card company charges you an interest rate of 1.72%
monthly (i.e., 1.72% **per month** on the card's
outstanding balance). This rate is not a per annum rate (i.e., not
an APR) but a rate per month. The effective annual rate is ______.
Enter your answer as a percentage rounding to 100th of a percent,
e.g., 12.34)

**Answer:**

1c. How much must we invest at the end of each month to build a balance of $630,000 over 11 years if we earn 12% per annum? (Round to nearest penny and enter, for example, as 123456.78)

**Answer:**

Answer #1

1a) What would be the sum of all the payments made (i.e., total
$s paid over the 30 years, ignoring time value) on the following
house mortgage? Loan amount is $178,000 with an interest rate of
6.0% per annum, term of 30 years, and monthly payments. (Round to
nearest penny and enter, for example, as 123456.78)
1b)
What is the present value of the following set of cash flows if
the discount rate is 11.1%? (the cash flows occur at...

1A) Calculate the yield to maturity (i.e., YTM) for the
following bond. The bond matures in 18 years, has a coupon rate of
8.8% with semi-annual payments. The par value of the bond is $1000,
while the current market value equals $653.08. (Round to 100th
of a percent and enter your answer as a percentage, e.g., 12.34 for
12.34%)
1B) How much would you pay for a zero coupon bond with a par
value of $1000, a maturity of 5...

What is the present value of the following cash flows, given an
appropriate discount rate of 3.98% (to the nearest penny)?
Year 1
$3,593
Year 2
$2,157
Year 3
$7,824
Year 4
$36,542
Year 5
6,369

1A) Compute the yield to maturity for a zero coupon bond with a
maturity of 13 years and a face value of $1000. The bond is selling
for $594.06. (Assume annual discounting.) (Round to 100th of a
percent and enter as a percentage, e.g. 12.34% as 12.34)
1B) Your business manager forwards the following information to
you. Your businesses earned a real rate of return of 4.4% last year
and inflation for the same period was 1.6%. What was your...

What is the net present value of the following set of cash flows
at a discount rate of 10 percent? Time Period Cash Flow 0 -$16,000
1 4,500 2 8,500 3 12,000 Group of answer choices $4,131 $2,783
$9,000

What is the net present value of a project with the following
cash flows if the discount rate is 11 percent?
Year 0: $16500
Year 1: $1400
Year 2: $1500
Year 3: $1750
Year 4: $0

Find the present value of the following cash flow stream if the
discount rate is 6.97%: CF1 = 24, CF2 = 42, CF3 = 47, CF4 = 74. The
cash flows are received at the end of each year. Round to the
nearest $0.01 (e.g., if your answer is $175.386, record it as
175.39).

What is the present value of the following net cash flows if the
discount rate is 12%:
Year Cash Flow
1-5 $10,000 each year
6-10 $15,000 each year
11-15 $17,000 each year
A. $ 86,462
B. $ 79,252
C. $151,400
D. $144,037
Sarah borrowed $125,000 to buy a house, her your loan cost was
11% and she promised to repay the loan in 15 equal annual payments.
What is the principal outstanding after the first loan payment?
A. $121,367
B....

1a) What is the present value PV of the following streams of
cash flows (CFs), if the discount rate is 7% of a stream of 10 CFs.
The first CF starts next year and is equal to $2,000. Then the next
5 CFs grow at 15% (over the prior year). The next 2 CFs are $0; the
last 2 CFs are equal to $21,000.
1b) You will need $2,000,000 when you retire in 30 years from
today. You are planning...

What is the profitability index for the following set of cash
flows if the relevant discount rate is 10 percent? What if the
discount rate is 15 percent? If it is 22 percent? Year Cash
Flow
0 -16,700
1-9,700
2 -7,800
3 - 4,300

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