Homework Answers
a. Present worth = 8000 * (P/A,10%,10) = 8000 * 6.144567 = 49156.54
b. Present worth = 8000 * (P/A,10%,10) *(P/F,10%,1) = 8000 * 6.144567 * 0.909091 = 44687.76
Add Answer to:
Problem 2 (20 Points Total) Calculate the present worth of 10 uniform payments of $8000 that...
Calculate the present worth of 20 uniform payments of $10,800 that begin 1 year from now...
Calculate the present worth of 20 uniform payments of $10,800 that begin 1 year from now at an interest rate of 14% per year. The present worth is?
1. (a) What is the present worth of $10,000 payments made each year at a nominal...
1. (a) What is the present worth of $10,000 payments made each year at a nominal interest rate of 6%, compounded semi-annually (i.e., twice per year)? (10 points) i. For a period of 50 years? (2 points) ii. In perpetuity? (2 points) (b) What is the present worth of $10,000 payments made biannually i.e., every two years) at a nominal interest rate of 6%? a) For a period of 50 years? (2 points) b) in perpetuity (2 points)
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
Just construct the cash flow diagram please Problem 3 (20 Points Total) Determine the equivalent annual...
Just construct the cash flow diagram please
Problem 3 (20 Points Total) Determine the equivalent annual worth for years 1 through 10 of a uniform series of payments of $20,000 that begins in year 3 and ends in year 10. Use an interest rate of 10% per year. Draw the cash flow diagram and describe the steps you are taking.
1. (a) What is the present worth of $10,000 payments made each year at a nominal...
1. (a) What is the present worth of $10,000 payments made each year at a nominal interest rate of 6%, compounded semi-annually (i.e., twice per year)? (10 points) i. For a period of 50 years? (2 points) ii. In perpetuity? (2 points)
The present worth of an uniform gradient decreasing series cash flow is KD 7000 . If...
The present worth of an uniform gradient decreasing series cash flow is KD 7000 . If the interest rate is 10% per year compounding annually and 8 annual payments with first payment is 1250 , calculate the g (decreasing amount)
With total yearly payments of $10,000 for 10 years, compare the compound amount accumulated at the...
With total yearly payments of $10,000 for 10 years, compare the compound amount accumulated at the end of the 10 years if the payments are (1) at the end of the year, (2) weekly, and (3) continuous. The effective (annual) interest rate is 8 percent, and the payments are uniform. Also determine the present worth at time zero for each of the three types of payments
need help with B, C, D Question 1 (20 points) a) Calculate the future value of...
need help with B, C, D
Question 1 (20 points) a) Calculate the future value of $20,000 invested now (time zero) for 5 years. It grows at a rate of 3% per year compounded annually. b) How much money will you have 25 years from now, if you deposit $1,000 into a bank account at the end of each year. Assume that the bank gives an interest rate of 2% compounded annually? c) Calculate the present value of a uniform...
Problem 2 If a loan is taken with total annual payments of $10,000/year for 10 years,...
Problem 2 If a loan is taken with total annual payments of $10,000/year for 10 years, compare the accumulated interest at the end of the 10 years if the payments are (1) made at the end of each year with discrete yearly interest compounding, (2) made at the end of each week with weekly discrete compounded interest and (3) made continuously with continuous interest compounding. The nominal interest rate, r, is 8%. For (3), the annual payments are assumed to...
What is an annuity? Select one: a. present worth of a series of equal payments. b....
What is an annuity? Select one: a. present worth of a series of equal payments. b. a single payment. c. a series of payments that changes by a constant amount from one period to the next. d. a series of equal payments over a sequence of equal periods. e. a series of payments that changes by the same proportion from one period to the next. Question 2 The present worth factor Select one: a. gives the future value equivalent to...
1. (a) What is the present worth of $10,000 payments made each year at a nominal interest rate of 6%, compounded semi-annually (i.e., twice per year)? (10 points) i. For a period of 50 years? (2 points) ii. In perpetuity? (2 points) (b) What is the present worth of $10,000 payments made biannually i.e., every two years) at a nominal interest rate of 6%? a) For a period of 50 years? (2 points) b) in perpetuity (2 points)
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
Just construct the cash flow diagram please
Problem 3 (20 Points Total) Determine the equivalent annual worth for years 1 through 10 of a uniform series of payments of $20,000 that begins in year 3 and ends in year 10. Use an interest rate of 10% per year. Draw the cash flow diagram and describe the steps you are taking.
1. (a) What is the present worth of $10,000 payments made each year at a nominal interest rate of 6%, compounded semi-annually (i.e., twice per year)? (10 points) i. For a period of 50 years? (2 points) ii. In perpetuity? (2 points)
need help with B, C, D
Question 1 (20 points) a) Calculate the future value of $20,000 invested now (time zero) for 5 years. It grows at a rate of 3% per year compounded annually. b) How much money will you have 25 years from now, if you deposit $1,000 into a bank account at the end of each year. Assume that the bank gives an interest rate of 2% compounded annually? c) Calculate the present value of a uniform...
Problem 2 If a loan is taken with total annual payments of $10,000/year for 10 years, compare the accumulated interest at the end of the 10 years if the payments are (1) made at the end of each year with discrete yearly interest compounding, (2) made at the end of each week with weekly discrete compounded interest and (3) made continuously with continuous interest compounding. The nominal interest rate, r, is 8%. For (3), the annual payments are assumed to...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago