With cash flow diagram. What lump sum of money must be deposited into a bank account at present time so that $1,500 per semi-annual can be withdrawn for 10 years, with the first withdrawal scheduled for five years from today? The nominal interest rate is 12% per year compounded quarterly. a)9457 b)10033 c)12025 d)17080

Q: 1. An investor deposits P10,000.00 at the end of each year in an account which gives a nominal…

A: Annual deposit (A) = P 10000 Accumulated value = X n = 10 years r = 5% continuously compounded

Q: What lump sum of money must be deposited in a bank account at present time so that P 500 monthly can…

A: An annuity is a sequence of payments or deposits occurring at equal intervals of time for a given…

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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

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A: Present value of annuity is the present value of all the stream of cash flow that occur in future.

Q: If the interest rate is 12% per year compounded annually, a) what is the equivalent present worth of…

A: The present worth analysis is an analysis which takes into account the present worth of the benefits…

Q: Two receipts of $1,000 each are desired at the EOYS 10 and 11. To make these- receipts possible,…

A: Given : (a). Draw a cash-flow diagram for this situation. (b). Determine the value of A that…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500…

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Q: If one makes quarterly deposit of $1250 into an account that pays interest at a rate of 6%…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: Depict the following transactions on a certain cash flow diagram: • Depositing $4,000 today and…

A: A cash flow diagram is a representation of cash inflows and cash outflows over a specified period of…

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A:

Q: With an interest rate of 6.5% p.a, compounded monthly, (i) Calculate the equivalent value of all…

A: Here we will have to use the concept of time value of money and determine the values at given points…

Q: Draw the cash flow diagram for each problem and use interest rate with five decimal places. Box your…

A: Quarterly Payments for first four years = 4500 N = 16 quarters Quarterly Payments for next three…

Q: Assume that $2000 is deposited today, $2000 two years from now, and $2000 four years from now. At a…

A: Hi, since multiple questions are posted, I will answer the first one as per the guidelines. Please…

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: For what interest rate will an uniform cash flow of $40,000 per year for 10 years, (t=1 to 10) be…

A: The present value is the value of the sum received at time 0. It is the current value of the sum…

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a…

A: Cash Flow Diagram: Income and expenses over some time interval are visually represented in cash flow…

Q: What deposit made at the beginning of each month will accumulate to P120,000 at 8% compounded…

A: Future Value = P 120,000 Interest Rate = 8% compounded semi-annually Time Period = 10 Years

Q: Starting at the end of this year, you plan to make annual deposits of $7,000 for the next 10 years…

A: MS-Excel --> Formulas --> Financials --> FV

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: i= 12% 2 3 4 n-1 $500 -$700 $900 $1100 A

A: Interest rate = 12% Year Cash Flow 1 500 2 700 3 900 4 1100 5 1300 6 1500 7 1700…

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A: Amount  of Cash flow = $120000 at the beginning of the year Years(n) = 20 Annual rate(r) = 9%…

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Q: Consider a cash flow that lasts for ten years. the initial value A occurs at the third year,…

A: Present Value of series = 34,717 Interest Rate = 8% Annual Growth Rate = -6% Cash flows start at end…

Q: annual cash flow f

A: Annual cash flows refer to the income of the company before deducting any interest, taxes,…

Q: What is the present value of a perpetual stream of cash flows that pays $2,500 at the end of year…

A: Perpetuity is a stream of identical cash flows with no end. It is a type of payment that is both…

Q: quarterly payments of $4,500 each for four years and a quarterly payments $2,000 of the next 3 years…

A:

Q: Consider a savings account with end-of-year transactions indicated by the following cash flow…

A: Given: Interest rate = 8% Years = 12

Q: cashflow diagram.

A: The cash flow statement represents the inflow and outflow of cash from the company in a particular…

Q: What lump sum of money must be deposited into a bank account at the present time so that $500 per…

A: The regular or lump-sum amount that is received or paid after a specific time period rather than…

Q: What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts…

A: Annual interest rate = 8% Quarterly interest rate = 8%/4 = 2% Number of quarterly deposits = 8

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A: In this we need to calculate the present value of all options.

Q: Find the amount at the end of two years and seven months if 6,000.00 is invested at 9% compounded…

A: Investment = 6000 Interest Rate = 9% Compounded Quarterly Number of compounding periods = 4

Q: What principal amount is equivalent to a withdrawal of 10,600 on the 2nd year,  4,000 on the 4th…

A: Let the principal amount = P Withdrawal in year 2 (W2) = 10600 W4 = 4000 Deposit in year 5 (D5) =…

Q: Need answers ASAP... If P100 is deposited in a savings account that pays 6% annual interest, what…

A: First of all, to find the future value, we will use the following formula: FV = PV * (1+r)n Where:…

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Q: .A series of equal cash $200 that is deposited at the end of each month will last for 10 years. How…

A: Monthly deposit (M) = $200 n = 10 years = 120 payments r = 9% per annum = 0.75% per month

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A: Present Value of Investment  Adjusted Rate of Return with regards to Inflation rate

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A: Present Value- The present value of an investment or amount is its value today. It is the current…

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A: Annual interest rate = 10% Monthly interest rate = 10%/12 = 0.83333333333%

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A: The present value is the sum of cashflows discounted at given discount rate

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Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.