Question
In: Finance
A. For each of the cases shown in the following table, calculate the present value of...
A. For each of the cases shown in the following table, calculate the present value of the cash flow, discounting the rate given and assuming that the cash flow is received at the end of the period noted.
|
Case |
Single cash flow ($) |
Discount Rate (%) |
End of Period |
Present Value |
|
A |
37,000 |
12 |
9 |
|
|
B |
25,000 |
10 |
12 |
|
|
C |
200 |
5 |
20 |
|
|
D |
40,000 |
9 |
10 |
|
|
E |
4,500 |
5 |
20 |
B. For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today at the end of the deposit period if the interest is compounded annually ar the rate specified..
|
Case |
Single cash flow ($) |
Discount Rate (%) |
End of Period |
Future Value |
|
A |
45,000 |
12 |
4 |
|
|
B |
150,000 |
8 |
20 |
|
|
C |
28,000 |
14 |
12 |
|
|
D |
10,000 |
11 |
6 |
|
|
E |
7,000 |
20 |
8 |
C. For each of the cases shown in the following table, calculate the present value of the annuity, assuming that it is (1) An ordinary annuity, (2) An annuity due.
|
Case |
Amount of Annuity ($) |
Interest Rate (%) |
Deposit Period |
Ordinary Annuity |
Annuity Due |
|
A |
37,000 |
12 |
9 |
||
|
B |
25,000 |
10 |
12 |
||
|
C |
200 |
5 |
20 |
||
|
D |
40,000 |
9 |
10 |
||
|
E |
4,500 |
5 |
20 |
D. For each of the cases shown in the following table, calculate the future value of the annuity, assuming that it is (1) An ordinary annuity, (2) An annuity due.
|
Case |
Amount of Annuity ($) |
Interest Rate (%) |
Deposit Period |
Ordinary Annuity |
Annuity Due |
|
A |
45,000 |
12 |
4 |
||
|
B |
150,000 |
8 |
20 |
||
|
C |
28,000 |
14 |
12 |
||
|
D |
10,000 |
11 |
6 |
||
|
E |
7,000 |
20 |
8 |
Solutions
Expert Solution
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jeff jeffy answered 1 year agoRelated Solutions
FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, CALCULATE THE FUTURE VALUE OF THE...
FOR EACH OF THE CASES SHOWN IN THE TABLE BELOW, 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, SEMI ANNUALLY AND QUARTERLY AT THE RATE
SPECIFIED OVER THE GIVEN PERIOD.
CASE
CASH FLOW
INTEREST RATE
DEPOSIT PERIOD (YEARS)
ORDINARY
ANNUITY
ANNUITY DUE
A
$750
8%
10
B
$3,250
12%
8
C
$9,500
16%
20
D
$10,000
20%
4
Present value For the case shown in the following table, calculate the present value of the...
Present value For the case shown in the following table,
calculate the present value of the cash flow, discounting at the
rate given,and assuming that the cash flow is received at the end
of the period noted. (Click on the icon here in order to copy the
contents of the data table below into a spreadsheet.)
Single cash flow- $148,000
discount rate- 13%
end of period (years) - 7
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually.
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
A
$500
8%
9
11%
B
1,000
13
20
11
C
500
15
5
16
The value of bond A, B, C is $?? (Round to the nearest
cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
A
$1,000
8
%
10
11
%
B
500
14
15
10
C
500
14
6
12
The value of bond A is
$nothing. ?
(Round to the nearest cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually. (
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
Copy to Clipboard
+
Open in Excel
+
A
$1 comma 0001,000
88
%
1111
99
%
B
500500
1212
2020
1111
C
100100
1414
44
1414
The value of bond A is
$nothing .
(Round to the nearest cent.)
Calculate the value of each of the bonds shown in the following table, all of which...
Calculate the value of each of the bonds shown in the following
table, all of which pay interest semiannually. (Click on the icon
located on the top-right corner of the data table below in order
to copy its contents into a spreadsheet.)
Bond
Par Value
Coupon
interest rate
Years to
maturity
Required stated
annual return
Copy to Clipboard
+
Open in Excel
+
A
$1 comma 0001,000
88
%
1111
99
%
B
500500
1212
2020
1111
C
100100
1414...
Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually.
Bond valuation—Semiannual interest Calculate the value of each of the bonds shown in the
following table, all of which pay interest semiannually. (Click
on the icon located on the top-right corner of the data table
below in order to copy its contents into a spreadsheet.)BondPar ValueCouponinterest rateYears tomaturityRequired statedannual returnA$5009%97%B500132012C50012616
(Appendix A) Future Value, Present Value The following cases are each independent of the others. Required:...
(Appendix A) Future Value, Present Value
The following cases are each independent of the others.
Required:
1. Sam Lilliam places $5,000 in a savings
account that pays 3 percent. Suppose Sam leaves the original
deposit plus any interest in the account for two years. How much
will Sam have in savings after two years? If required, round your
answer to the nearest cent. (Note: the present value
tables cannot be used to answer this question; you must instead use
the...
Calculate the value of the bond shown in the following table, assuming it pays interest annually.
Calculate the value of the bond shown in the following table, assuming it pays interest annually.Par valueCoupon interest rateYears to maturityRequired return$1,00013%206%The value of the bond is $________Formula without using excel.
26. Solve each of the following independent cases using the present value tables: The following actual...
26. Solve each of the following independent cases using the
present value tables: The following actual contracts signed by
athletes: a. $28,000,000 contract, payable at $2,000,000 per year
for 14 years. b. $31,500,000 contract, payable at $1,575,000 per
year for 20 years. c. $24,000,000 contract, payable at $2,400,000
per year for 10 years. Determine the present value of each contract
and indicate (with explanation) which contract you would prefer to
have. Assume an 8% interest rate.
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