Solving Problems in APA Style Format

The purpose of this paper is to provide you with written instructions on some of the basic guidelines with the new APA format (American Psychological Association, 2009). In addition, this paper is written in APA format to provide you with a visual image of how many aspects of papers should be written, from the title page, to headings, to references in text, and the reference page. This paper is not met to be a comprehensive explanation of APA format, but will provide the reader with the basics. So, please buy the manual and read it.

13. What is the formula for the Present Value (PV) for a finite stream of cash flows (1 per year) that lasts for 10 years?

What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?

10. An investment of $1,000 today will grow to $1,100 in one year. What is the continuously compounded rate of return?

Therefore the annual interest rate is 8% and the effective annual rate compounded quarterly is 8.24%

Compute the incremental cash flows of the investment for each year. (Do not round intermediatecalculations. A negative answer should be indicated by a minus sign.)

The present value of an outlay in perpetuity for a particular project can be calculated as follows:

A person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account? (Bluman, A. G. 2005, page 230).

The interest rate of a term deposit is at 5.2% per annum. Available investment fund is $200,000. Term Deposit will yield $10,400 p.a. by using $200,000 multiply by 5.2%. However, for compounded interest rate, 5 years investment will be $257,697 (ROI = $57,697). And 10 years investment will be $332,038 (ROI = $132,038), assume that the interest rate is constant within 10 years period. The risk is considered minimal.

Compounding monthly means that there are twelve interest payments per year. So, n = 12(5) = 60 and i = 0.08/12 = [pic]

Use the first sentence or sentences of the introduction to grab your reader’s attention and let them know what the main idea of your paper is. The introduction of the paper begins here in the first paragraph of your paper, on the line following the paper title. Indent the first sentence of each paragraph by pressing the tab key on your keyboard. Double-space throughout the paper, including the title page, abstract, body of the document, and References page. APA uses a traditional font style such as Times New Roman, and a 12 point font size.

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

2(X4 + X5 + X6 + X7 + X10 + X11 + X16 + X17 + X18 + X27 + X28) – (X1 + X2 +X3

5. P = $40({1 – [1/(1 + .03)]26 } / .03) + $1,000[1 / (1 + .03)26]

We then get the annuity of the 1,200 semiannual PMTs at year 6, and then at Present Value