Question

At what effective rate of interest will be present value of $1,000 at the end of...

At what effective rate of interest will be present value of $1,000 at the end of 2 years and $3,000 at the end of 4 years be equal to $10,000?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Cash flows Year
         (10,000.000) 0
                             -   1
              1,000.000 2
                             -   3
              3,000.000 4

Use IRR funciton in Excel

effective rate of interest = -22.54%

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At an annual effective interest rate of ?, ? > 0, the present value of a...
At an annual effective interest rate of ?, ? > 0, the present value of a perpetuity paying 10 at the end of each 3-year period, with the first payment at the end of year 6, is 32. At the same annual effective rate of ?, the present value of a perpetuity-immediate paying 1 at the end of each 4-month period is X. Calculate X.
Jack invests 1,000 at the end of each year for n years at an effective interest...
Jack invests 1,000 at the end of each year for n years at an effective interest rate of i. At the end of n years, it has accumulated to X. Jill invests 2,000 at the end of each year for 2n years at an effective interest rate of i. At the end of 2n years, it has accumulated to 6X. Junior invests 3,000 at the end of each year for 3n years at an effective interest rate of i. At...
Give the present value of a perpetuity that pays $1,000 at the end of every year....
Give the present value of a perpetuity that pays $1,000 at the end of every year. The first payment occurs at the end of the fifth year and the annual effective interest rate is 3%.
1.What is the discount rate assuming the present value of $840 at the end of 1-year...
1.What is the discount rate assuming the present value of $840 at the end of 1-year is $765? 2.What is the Future value of $3,500 deposited for 12 years at 5% compounded annually? 3. If $2,800 is discounted back 4 years at an interest rate of 8% compounded semi-annually, what would be the present value? 4. Determine the future value of $6,000 after 5 years if the appropriate interest rate is 8%, compounded monthly. 5. Consider a newlywed who is...
What is the present value of $10,000 paid at the end of each of the next...
What is the present value of $10,000 paid at the end of each of the next 68 years if the interest rate is 6% per​ year?
Assuming a market interest rate of 6 percent per year, what is the present value of...
Assuming a market interest rate of 6 percent per year, what is the present value of $5,000 payable at the end of three years? (1) $4,450 (2) $4,317 (3) $4,717 (4) $4,198
34) Which of the following has the highest present value? Group of answer choices A) $1,000...
34) Which of the following has the highest present value? Group of answer choices A) $1,000 received in 3 years if the current interest rate is 4% B) $1,500 received in 5 years if the current interest rate is 6% C) $2,000 received in 6 years if the current interest rate is 11% D) $3,000 received in 10 years if the current interest rate is 12%
What is the present value of $27 received at the end of each year for 2...
What is the present value of $27 received at the end of each year for 2 years? Assume the annual effective rate of interest is 9%. The first payment will be received one year from today (round to the nearest $1). a: $42 b: $54 c: $88 d: $47
1a. If the interest rate is 10%, what is the present value of a security that...
1a. If the interest rate is 10%, what is the present value of a security that pays you $1,100 next year, $1,210 the year after, and $1,331 the year after that? 1b. Calculate the present value of a $1,000 discount bond with five years to maturity is 6%. Make sure to write down the equation you use to find the answer.
At an annual effective interest rate i > 0, all three of the following are equivalent...
At an annual effective interest rate i > 0, all three of the following are equivalent (equal present value). (1) a payment of 20,000 four years from now (2) a payment of 11,000 t years from now and 11,000 2t years from now (3) 12,000 immediately What is the present value of a payment of 15,000 made t+2 years from now?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT