Be on schedule.Score better.

support@savemydegree.com

EN

Our Services

Get 15% Discount on your First Order

Time Value of MoneyPlease complete the attached worksheet by providing a response to all of the questions.Please answer the

Time Value of Money

Please complete the attached worksheet by providing a response to all of the questions.

Please answer the following time value of money questions below. Charting out each of the problem elements (ex. N = 10, PV = 500, etc.) will not only help you in answering the questions but will also assist me in following your calculations.

1. What is the present value of a 10-year annuity of $400 per year if the annual interest rate is 3.5%?

2. What will an investment of $2,500 today be worth in 15 years at an interest rate of 2.5% compounded semi-annually?

3. How many years will it take for your investment of $1,000 to become $10,000 at an annual interest rate of 3.9%?

4. What
annual interest rate would you need in order for your investment of $2,200 to grow to $17,500 in 12 years?

5. You are offered an annuity that will pay you $200 per year for each of the next 7 years. You are trying to decide between this investment opportunity and another opportunity where you could earn 5% on your money with an equal amount of risk. What is the most you should pay for this annuity?

6. What is the present value of a perpetuity bond that will pay you $70 of interest per year at an interest rate of 6%?

7. What is the present value of a 7-year annuity of $175 plus an additional lump sum of $1,000 at the end of year 7 if the interest rate is 5.5%?

8. What is the cost of an investment that will produce cash flows of $250 at the end of the next 5 years, then an extra lump sum payment of $500 at the end of the 5th year at an interest rate of 5%?

9. How much would you be willing to pay today for an investment that pays the following cash flows at the end of each of the next 4 years if your required rate of return is 9% per year?

Period Cash Flow

0

$0

1

$100

2

$200

3

$300

4

$400

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Business Law BUS 3301 VII Question 12 The principal agent relationship, the employer-employee relationship, and the employer-independent contractor

Business Law BUS 3301 VII Question 12 The principal agent relationship, the employer-employee relationship, and the employer-independent contractor relationship are three types of agency relationships commonly found in business settings. Why is it important for business professionals to know what type of agency relationship they are forming?   Your response must

pfaTASK 1: By Tuesday Evening Reflection and Discussion Forum Week 3

pfa TASK 1: By Tuesday Evening Reflection and Discussion Forum Week 3 Assigned Readings: Chapter 8. Understanding Markets and Industry Changes. Chapter 9. Market Structure and Long-Run Equilibrium. Chapter 10. Strategy: The Quest to Keep Profit from Eroding. Initial Postings: Read and reflect on the assigned readings for the week.