Question
In: Finance
Find the interest rate implied by the following combinations of present and future values: (Do not...
Find the interest rate implied by the following combinations of present and future values: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.)
|
|||||||||||||||||||||
Solutions
Expert Solution
| FV = | Future Value | |
| PV = | Present Value | |
| r = | rate of interest | |
| n= | no of period | |
| a) | FV/ PV = | (1 + r )^n |
| 806 / 450 = | (1 + r%)^10 | |
| 1.79111111111 = | (1 + r%)^10 | |
| r = | 6.00% | |
| b) | FV/ PV = | (1 + r )^n |
| 269 / 208 = | (1 + r%)^3 | |
| 1.29326923076= | (1 + r%)^3 | |
| r = | 8.95% | |
| c) | FV/ PV = | (1 + r )^n |
| 350 / 350 = | (1 + r%)^6 | |
| 1 = | (1 + r%)^6 | |
| r = | 0.00% | |
jeff jeffy answered 3 years agoRelated Solutions
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 12%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that, when
working with the...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams.
The appropriate interest rate is 12%. (Hint: It is fairly easy to
work this problem dealing with the individual cash flows. However,
if you have a financial calculator, read the section of the manual
that describes how to enter cash flows such as the ones in this
problem. This will take a little time, but the investment will pay
huge dividends throughout the course. Note that, when working with
the...
Find the present values of the following cash flow streams. The appropriate interest rate is 6%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 6%. Round your answers to the nearest
cent. (Hint: It is fairly easy to work this problem dealing with
the individual cash flows. However, if you have a financial
calculator, read the section of the manual that describes how to
enter cash flows such as the ones in this problem. This will take a
little time, but the investment will pay huge dividends throughout
the...
Find the present values of the following cash flow streams. The appropriate interest rate is 12%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 12%. (Hint: It is fairly easy
to work this problem dealing with the individual cash flows.
However, if you have a financial calculator, read the section of
the manual that describes how to enter cash flows such as the ones
in this problem. This will take a little time, but the investment
will pay huge dividends throughout the course. Note that, when
working with the...
Find the present values of the following cash flow streams. The appropriate interest rate is 9%....
Find the present values of the following cash flow streams. The
appropriate interest rate is 9%. Round your answers to the nearest
cent. (Hint: It is fairly easy to work this problem dealing with
the individual cash flows. However, if you have a financial
calculator, read the section of the manual that describes how to
enter cash flows such as the ones in this problem. This will take a
little time, but the investment will pay huge dividends throughout
the...
Find the present values of the following cash flow streams at a 5% discount rate. Do...
Find the present values of the following cash flow streams at a
5% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$450
$450
$450
$300
Stream B
$0
$300
$450
$450
$450
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $
Find the present values of the following cash flow streams at a 6% discount rate. Do...
Find the present values of the following cash flow streams at a
6% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$100
$400
$400
$400
$300
Stream B
$0
$300
$400
$400
$400
$100
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $
Find the present values of the following cash flow streams at a 4% discount rate. Do...
Find the present values of the following cash flow streams at a
4% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0 1 2 3 4 5
Stream A $0 $100 $450 $450 $450 $250
Stream B $0 $250 $450 $450 $450 $100
Stream A: $ ____?
Stream B: $ ____?
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $ ___?...
Find the present values of the following cash flow streams at an 11% discount rate. Do...
Find the present values of the following cash flow streams at
an 11% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$150
$450
$450
$450
$300
Stream B
$0
$300
$450
$450
$450
$150
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $
Find the present values of the following cash flow streams at a 10% discount rate. Do...
Find the present values of the following cash flow streams at a
10% discount rate. Do not round intermediate calculations. Round
your answers to the nearest cent.
0
1
2
3
4
5
Stream A
$0
$100
$350
$350
$350
$300
Stream B
$0
$300
$350
$350
$350
$100
Stream A: $
Stream B: $
What are the PVs of the streams at a 0% discount rate? Round
your answers to the nearest dollar.
Stream A: $
Stream B: $ ...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Given an original message, determine the cipher that will produce the encoded string that comes earliest...
- Design a combination of identical capacitors, each with capacitance C, for which the equivalent capacitance is...
- Come-Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use....
- Which of the following is not an advantage of decentralization? Lower level managers are trained for...
- 1. A mole of X reacts at a constant pressure of 43.0 atm via the reaction...
- Why was the U.S. trying to spread our influence to other nations? Could we have still...
- For the past several weeks you have addressed several different areas of telecommunications and information technology...
ADVERTISEMENT