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 2 years 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
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...
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 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...
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
y-value in the table with its logarithm. Find the equation of the
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...
For the mixed stream of cash flows shown in the following table. determine the future value...
For the mixed stream of cash flows shown in the following
table. determine the future value at the end of the final year if
deposits are made into an account paying annual interest of 15%,
assuming that no withdrawals are made during the period and that
the deposits are made:
a. At the end of each year.
b. At the beginning of each year
Year
Cash flow stream
1
$34,800
2
$29,000
3
$23,200
4
$11,600
5
$5,800
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