Future values For the case shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. (Click on the icon here in order to copy contents of the data table below into a spreadsheet.) Single cash flow $5,500 Interest rate 9% Deposit period (years) 14
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- Consider each of the following deposit cash flow series. What will the final balance be (future equivalent value) after the final deposit? Assume the account earns 9% interest compounded annually *Use excel*1. For each of the following cases, calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate specified over the given period. Case Single Cash Flows ($) Interest Rate (%) Deposit Period (years) A $100 3.5% 30 B $5,000 10% 25 C $12,500 12% 7 D $23,200 14% 10Consider each of the following deposit cash flow series. What will the final balance be (e.g., future equivalent value) after the final deposit? Assume the account earns 10% interest compounded annually. a) b) Year Cash Flow/$ Year Cash Flow/$ 0 25 0 35 1 50 1 60 2 75 2 75 3 100 3 110 4 125 4 135 5 150 5 160
- 1. Future Value For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. Part Single CF Interest Rate Deposit Period (Years) PV I/Y N A $900 3% B $1200 6% C $16,000 9% D $40,000 10% 6 8 12 15Continuous compounding For the case in the following table, find the future value at the end of the deposit period, assuming that interest is compounded continuously at the given nominal annual rate. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) The future value at the end of the deposit period is $. (Round to the nearest cent.) Amount of initial deposit $3,300 Nominal annual rate, r 15% C Deposit period (years), n 6What is the amount C of quarterly deposits such that you will be able to withdraw the amounts shown in the accompanying cash flow diagram if the interest rate is 8% compounded quarterly?
- Determine the value of W on the right-hand side of the accompanying diagram that makes the two cash-flow diagrams equivalent when /=9% per year. Q $1,150 30 1 2 End of Year $1,150 3 4 5 $1,150 W Click the icon to view the interest and annuity table for discrete compounding when i=9% per year. End of Year The equivalent amount, "W", of the cashflows provided in the diagram is $ 1739. (Round to the nearest dollar.) W OUDetermine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, varies as indicated. 55,000 $5.000 $2.500 $2,500 4-12% 48% 10% 10% Years Click the icon to view the interest and annuity table for discrete compounding when /8% per year. Click the icon to view the interest and annuity table for discrote compounding when /10% per year. The present equivalent value is $ (Round to the noarest cent.)Time value of MoneyPart-I, Mr. Zigong wishes to know about the future values of the single cash flow deposited today that will beavailable at the end of the deposit period if the interest is compounded annually at the rate specified oversome specific period. For example, the situation for the first case is that single cash flow is 200$, interestrate is 5%, and deposit period is 20 years. Under second case, single cash flow is 4500$, interest rate is8%, and deposit period is 7 years. Whereas under third case, single cash flow is 10,000$, interest rate is9%, and deposit period is 10 years. In addition, under fourth case, single cash flow is 25,000$, interestrate is 10%, and deposit period is 12 years. Besides, under last case, single cash flow is 37000$, interestrate is 11%, and deposit period is 5 years, respectively. Part-II, The significance of present value is quite vital in the financial world of the business. Calculate the present value of the cash…
- Number of years to provide a given return In the information given in following case, determine the number of years that the given oridinary annuity cash flows must continue in order to provide the rate of return on the initial amount. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial amount $112,100 Annual cash flow $25,622 Rate of return C 5% The number of investment years, n, is years. (Round to two decimal places.)P=? $3,000 $3,000 $1,500 $1,500 4=10% 2 = 8% iz = 10% 4 = 15% I5 = 10% 6 =8% 1 3 Years 6 Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 15% per year. The present equivalent value is $ (Round to the nearest cent.)Question: Use the following information to answer the next two questions: You deposited the following stream of cash flow at the end of the year: Year deposit rate of interest 1 5000 8% 4 4000 8.5% 6 7000 10% What will be the total amount in your account at the end of 6 years? 2. What is the present value of your deposit?