investor will receive Shs 20,000, Shs 15,000 and Shs 30,000 at the end of years one, two and three from today respectively and leave a balance of Shs 1,000. If the rate of interest during years one and three is 8 % per annum and 13% per annum respectively, and the present value of the cashflows is Sha 60,000, what is the rate of interest in year two

Q: A set of cash flows begins at $15,000 the first year, with an increase each year until n = 12 years.…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: A loan was to be amortized by a 5 end-of-year payments forming an ascending arithmetic progression.…

A: Here, First Payment is P 10,000 Increase in Payment is P1,000 Interest Rate is 10% Time Period of…

Q: Visa Inc. asked your company for a 5-year loan of $50,000. The repayment of the loan will be as…

A: The present value of a cash flow is the current worth of a series of cash flows at a certain rate of…

Q: Determine the present value of a financial instrument that pays $18,500 in 10 years if instruments…

A: Present Value: It refers to the real value or worth of any asset or project. It determines the fair…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Present value = Future value / ( 1 + Periodic interest rate )Number of periods

Q: determine the equivalent a. present worth at the beginning of the first year and b. uniform annual…

A: Net Present Value: It is the present worth of the annual cash flows and the initial cost of the…

Q: A set of cash flows begins at $60,000 and increases at 10% per annum for the next 12 years. If the…

A: Begining Cash flow is $60,000 Cash flow growth rate is 10% per annum Time Period is 12 Years…

Q: What amount of money invested today at 15 % interest can provide the following scholoarships: Php…

A: Given, R= 15% A1= PHP 30,000 N1= 6 A2= PHP 40,000 N2= 6 A3= PHP 50,000

Q: Suppose  you expect to receive the following future cash flows at the end of the years indicated.…

A: Future value- Year       FV 2          $2300 4          $5200 5          $2600 9          $8000…

Q: If you are calculating the present value of this cash flow under semiannual (twice per year)…

A: Future Value: It represents the value of annual cash flows or the sum of money at a later/future…

Q: Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of…

A:

Q: single

A: Formulas: Part 1: FV = PV(1+r)^?n Part 2: PV = FV/(1+r)^n Part 3: FV = C*[(1+i)^n - 1]…

Q: An investment pays SX in one year, $300 in two years, and $500 in three years. The total present…

A: Here, Investment Pays in One year is $X Investment Pays in two years is $300 Investment Pays in…

Q: Draw a Cash Flow Diagram for P10,535 being loaned out at an interest rate of 12% per year over a…

A: Simple Interest per annum = Principle * Rate * Time = P10,535 * 12% * 1 = 1264.2   Cash flow diagram…

Q: What is the present value of a cash flow stream of $1,000 per year annually for 11 years that then…

A: Cash flow at end of 11 years = Cash flow of 11th year * (1+growth rate)/ discount rate - growth rate…

Q: A principal of 2450 Rials is invested at rate 5.25% compounded quarterly. After how many years the…

A: The time period or the number of years (NPER) refers to the time it would require for the investment…

Q: You will be receiving cash flows of:  $2,000 today, $2,000 at the end of year 1, $3,000 at the end…

A: Net Present Value(NPV) is excess of present value(PV) of all future cash inflows over initial outlay…

Q: Find the present worth of a future payment of P200,000 to be made in 15 years with an interest of…

A: Future worth of a present value With present worth (PW), effective annual rate (r) and time (n), the…

Q: Suppose that a certain EOY (end of year) cash flows are expected to be $1,000 for the second year,…

A: End of year cash flows are those cash flows which are generated at the end of each year for an…

Q: A set of cash flows begins at $20,000 the first year, with an increase each year until n = 10 years.…

A: Information provided: Initial cashflow = $20,000 n = 10 years interest rate = 8%   Present value =…

Q: An investment will pay $150 at the end of each of the next 3 years, $200 at the end of Year 4, $300…

A: Present value is the sum of the current value of money of future cash flows. It is also known as a…

Q: Ferris Bueller has borrowed from the Ferrari Bank at a rate of 7% and will repay the laon with…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: Mr. Zigong wishes to know about the future values of the single cash flow deposited  today that will…

A: The value of a cash flow deposited today and to be received in the future can be calculated using…

Q: Dosky expects to receive GHȼ300, GHȼ500, GHȼ1000 and GHȼ1500 in year1,2,3 and 4 respectively. What…

A: Cash flow Year 1 = 300 Cash flow Year 2 = 500 Cash flow Year 3 = 1000 Cash flow Year 4 = 1500…

Q: C Bank offers Php Php 84,000 at the end of 4 years plus Php Php 240,000 at the end of 4 years Assume…

A: The question is related to Present Value. The Present Value is calculated with the help of following…

Q: The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate…

A: The present worth of cash flows is calculated as sum of discounted value of all cash flows.

Q: Given invest $10000 an investment account paying 3.4507 interest, find the amount Mou would have…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: An advertisement of an investment firm states that if you invest P500 in their firm today you will…

A: Interest Amount = Maturity Amount - Investment Amount   Nominal rate = [ Interest Amount /…

Q: 5. Which of the following statements is true about annuity? A. It is a series of payments of equal…

A: Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate…

A: The present worth of cash flows is calculated as sum of discounted value of cash flows.

Q: Draw a cash flow diagram

A: Cash flows in different periods are not comparable; therefore, we use the concept of time value of…

Q: If you make quarterly deposits of $1000 for 15 years into an account that compounds interest at 1.5%…

A: Quaterly deposit is $1000 Time period is 15 years Interest rate is 1.5%   To Find: Future Value

Q: A certain end of year cash flows are expected to be P 7,000.00 at the end of the  3rd year, P…

A: Present value: Present value is the future cash flow at a specific discount rate. The time value…

Q: A company expects to receive the following cash flows $2,000 for the first ten years and then $3,000…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: A debt of RM3,000 will mature in three years’ time. Assuming that the money is worth 14% compounded…

A: Total debt = RM 3,000 Time period = 3 years  Interest rate = 14%

Q: Assume that Kikay Company is to make annual investment of P500,000 for five years. The interest for…

A: Annuity means where regular payment is made at the end of regular period and full amount with…

Q: A person invests 100,000 TL in bank deposits with an annual nominal interest rate of 10%,…

A: According to the time value of money concept, money available today worth more than the same amount…

Q: RM1,800 is invested in scheme A at 10% per annum for 2 years at simple interest while another…

A: The question is based on the concept of Financial Management.

Q: A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn.…

A: Invested amount (P) = P 1,000 Period for first withdrawal (N1) = 8 Years After 8 years withdrawal…

Q: For this investment, an initial amount of $25,000 should be paid this year (t=0). As of next year…

A: The present value method is a method of finding the productivity of the project by discounting the…

Q: Please solve very soon completely An investor pays £240 per annum into a savings account for 12…

A: Semi annual compound interest=8% Future value=Present value(1+r)n 1 four year:Number of…

Q: Determine the present value of $200,000 to be received at the end of each of four years, using an…

A:

Q: A financial planner at Faisal Bank has offered you three possible options for receiving cash flows.…

A: The concept of the time value of money states that the worth of money at present is more than the…

Q: Suppose you expect to receive the following future cash flows at the end of the years indicated: GHC…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: present value

A: Present Value is the computed amount today of either a single sum amount or a series of payments to…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.