Question

What's the future value of this cash flow stream: $1,200 at the end of Year 1,...

What's the future value of this cash flow stream: $1,200 at the end of Year 1, $0 at the end of Year 2, and $500 at the end of Year 3? The appropriate annual interest rate is 10%.

Group of answer choices

$2,105.47

$1,916.37

$1,856.15

$1,868.31

$1,952.00

Assume that you must make a $1,500 payment one year from today. How much must you deposit today in a bank account that pays a 6% nominal rate, monthly compounding, to have the needed funds a year from now?

Group of answer choices

$1,760.13

$1960.70

$1379.27

$1,328.35

$1,412.86

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Formulae

Formulae as above

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
Find the future value (as of the end of Year 4) of the following cash flow...
Find the future value (as of the end of Year 4) of the following cash flow stream if the discount rate is 6.02%: CF1 = 70, CF2 = 60, CF3 = 43, CF4 = 26. The cash flows are received at the end of each year. Round to the nearest $0.01 (e.g., if your answer is $275.386, record it as 275.39).
Find the future value (as of the end of Year 4) of the following cash flow...
Find the future value (as of the end of Year 4) of the following cash flow stream if the discount rate is 4.08%: CF1 = 76, CF2 = 61, CF3 = 35, CF4 = 20. The cash flows are received at the end of each year. Round to the nearest $0.01 (e.g., if your answer is $275.386, record it as 275.39). Blank 1. Calculate the answer by read surrounding text.
Consider an uneven cash flow stream: Show formulas and work without using excel Year Cash Flow...
Consider an uneven cash flow stream: Show formulas and work without using excel Year Cash Flow 0 $2,000 1 $2,000 2 $0 3 $1,500 4 $2,500 5 $4,000 What is the value of the cash flow stream at the end of Year 5 if the cash flows are invested in an account that pays 10 percent annually? What cash flow today (Year 0), in lieu of the $2,000 cash flow, would be needed to accumulate $20,000 at the end of...
If the appropriate discount rate, i/y, for the following year end cash flows is 8.45% per...
If the appropriate discount rate, i/y, for the following year end cash flows is 8.45% per year, the sum of the present values of the cash flows is: Year Cash Flow PV @8.45% 1 $1,650 2 0    3 $4,200 Group of answer choices $5,280 $4,105 $3,571 $4814.20 You want to borrow $3,000 from your local bank to buy a really neat calculator. You can afford to make monthly payments of $75. The bank reports that it will charge 6.0%...
11. EFFECTIVE VERSUS NOMINAL INTEREST RATES Bank A pays 6.5% interest compounded annually on deposits, while...
11. EFFECTIVE VERSUS NOMINAL INTEREST RATES Bank A pays 6.5% interest compounded annually on deposits, while Bank B pays 6% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? (Select From I-V) You would choose Bank A because its EAR is higher. You would choose Bank B because its EAR is higher. You would choose Bank A because its nominal interest rate is higher. You would choose Bank B because its nominal interest rate is...
The second and fifth cash flows in the following cash flow stream are missing. Both cash...
The second and fifth cash flows in the following cash flow stream are missing. Both cash flows are the same (that is, CF2 = CF5). If the future value at the end of year 10 (that is, at t = 10) of this cash flow stream (these are the only cash flows in the cash flow stream) is $10,000 at a nominal annual interest rate of 8 percent, compounded semiannually, what is the amount of the missing cash flow?
For the following mixed stream of cash​ flows, determine the future value at the end of...
For the following mixed stream of cash​ flows, determine the future value at the end of the final year if deposits are made at the beginning of each year into an account paying annual interest of 1010​%, assuming no withdrawals are made during the period.   Year Cash Flow Stream 1 17 comma 00017,000 2 8 comma 5008,500 3 7 comma 0007,000 Year Cash Flow Stream 1 17 comma 00017,000 2 8 comma 5008,500 3 7 comma 0007,000 Future Value ​($)equals=...
Future Value of an Investment An investment is projected to generate a continuous revenue stream at...
Future Value of an Investment An investment is projected to generate a continuous revenue stream at the rate of R(t) = 50,000e0.03t dollars/year for the next 3 years. If the income stream is invested in a bank that pays interest at the rate of 5.5%/yearcompounded continuously, find the total accumulated value (in dollars) of this income stream at the end of 3 years. (Round your answer to the nearest dollar.)
eBook Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9.5% compounded...
eBook Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9.5% compounded daily. a. Based on the EAR (or EFF%), which bank should you use? You would choose Bank A because its EAR is higher. You would choose Bank B because its EAR is higher. You would choose Bank A because its nominal interest rate is higher. You would choose Bank B because its nominal interest rate is higher. You are indifferent between the banks and...
5-7 Present and Future Values of a Cash Flow Stream An investment will pay $100 at...
5-7 Present and Future Values of a Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $200 at the end of year 4, $300 at the end of year 5, and $500 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Its future value?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT