Question
In: Finance
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 |
|||
Solutions
Expert Solution
| CASE | CASH FLOW | INTEREST RATE | DEPOSIT PERIOD (YEARS) | |||||||
| quarterly OA | semiannual OA | Annual OA | quarterly AD | semiannual AD | Annual AD | |||||
| A | 750 | 8% | 10 | $ 1,656.03 | $ 1,643.34 | $ 1,619.19 | $ 1,656.03 | $ 1,643.34 | $ 1,619.19 | |
| B | 3,250 | 12% | 8 | $ 8,369.02 | $ 8,256.14 | $ 8,046.88 | $ 8,369.02 | $ 8,256.14 | $ 8,046.88 | |
| C | 9,500 | 16% | 20 | $ 2,18,973.09 | $ 2,06,382.95 | $ 1,84,877.21 | $ 2,18,973.09 | $ 2,06,382.95 | $ 1,84,877.21 | |
| D | 10,000 | 20% | 4 | $ 21,828.75 | $ 21,435.89 | $ 20,736.00 | $ 21,828.75 | $ 21,435.89 | $ 20,736.00 |
Now since there are no cash flows in interim, there will not be any difference in FV calculated due to annuity due or ordinary annuity
jeff jeffy answered 1 year agoRelated Solutions
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...
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
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Calculate the value of each of the bonds shown in the following table, all of which...
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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. (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...
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.)
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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 pay interest semiannually.
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on the icon located on the top-right corner of the data table
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(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
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Use the data shown in the table. Replace each x-value and y-value in the table with...
Use the data shown in the table. Replace each x-value and
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regression line for the transformed data. Then construct a scatter
plot of
left parenthesis log x comma log y right
parenthesis(log x,logy)
and sketch the regression line with it. What do you notice?
x
1
2
3
4
5
6
7
8
y
828828
353353
174174
103103
121121
6464
6969
3232
Find the equation of the regression...
Based on the data shown below, calculate the regression line (each value to two decimal places)...
Based on the data shown below, calculate the regression line
(each value to two decimal places)
y = x +
x
y
1
9.94
2
10.38
3
9.92
4
14.46
5
14.6
6
12.24
7
14.58
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