Time Value of Money Danielle Kaplan B6022-P A01 Calculate the future value of 100‚000 ten years from now based on the following annual interest rates 2 ( 100‚000 x (1.02)10 121‚899 5 ( 100‚000 x (1.05)10 162‚899 8 ( 100‚000 x (1.08)10 215‚892 10 ( 100‚000 x (1.10)10 259‚374 Calculate the present value of a stream of cash flows based on a discount rate of 8. Annual cash flow is as follows Year 1 100‚000 ( 100‚000 / (1.08) 92‚592 Year 2 150‚000 ( 150‚000 / (1.08)2 128‚600 Year 3 200
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ACFI 340 – TAKE HOME QUIZ - FALL‚ 2011 Below you will find a series of independent questions involving present value concepts. Show all factors used in present value computations and indicate the table that was used (FV of $1‚ PV of $1‚ etc). If you use a financial calculator‚ show the key strokes you used to compute the answer: N‚ i/y‚ PV‚ FV and PMT Please download a copy of this quiz and type your answers after each question. Each student should design his/her own spreadsheets. Where amortization
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Time Value of Money Project Show all your work! Name _________________ 1. If Mrs. Beach wanted to invest a lump sum of money today to have $100‚000 when she retired at 65 (she is 40 years old today) how much of a deposit would she have to make if the interest rate on the C.D. was 5%? a. What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%. b. What would Mrs. Beach have to deposit if she
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beneficial to pay off the debt vs. putting money in a savings account? Explain the pros and cons of either option. I think with a 14% interest rate is would be beneficial to pay off the debt instead of putting money in a savings account. I would pay it off as fast as possible because the cost would be after 1 year with 14% $11‚449.00‚ and after four years $17‚181l86. This would be a big lump sum of money I could save if I pay it off fast. Pros and cons of saving money: I would have some savings I could
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Time Value of Money Problems 1. What will a deposit of $4‚500 at 10% compounded semiannually be worth if left in the bank for six years? a. $8‚020.22 b. $7‚959.55 c. $8‚081.55 d. $8‚181.55 2. What will a deposit of $4‚500 at 7% annual interest be worth if left in the bank for nine years? a. $8‚273.25 b. $8‚385.78 c. $8‚279.23 d. $7‚723.25 3. What will a deposit of $4‚500 at 12% compounded monthly be worth at the end of 10 years? a. $14‚351.80 b. $14‚851.80 c. $13‚997.40 d. $14
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Q. 1 Jim makes a deposit of $12‚000 in a bank account. The deposit is to earn interest annually at the rate of 9 percent for seven years. How much will Jim have on deposit at the end of seven years? Q. 2 Find the present value of $10‚000 to be received at the end of 10 periods at 8% per period. Q.3 What is the value of the following set of cash flows today? The interest rate is 8% for all cash flows. Year Amount 1 Rs. 3000 2 Rs.5000 3
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8:00-9:15 Essay # 1 Summary September 10‚ 2011 Caroline Bird’s essay “College is a Waste of Time and Money” explains her beliefs on why‚ for some people‚ going to college is an ineffective and inefficient use of their time. She states that many students do not belong in college because they are there for the wrong reasons and they are not happy learning. She also gives evidence to suggest that going to college and getting a degree does not actually allows a person to make more money in their life
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Sorayah Vuningoma Professor Scott English 101 Rough Draft College is a waste of time and money In Caroline Bird‚ “College is a waste of time and money‚” Bird discusses why college is not necessary for everyone. She states that many college students are in college not because they want to but because they have to. Bird came to realize that college students don’t feel needed. They are led to believe that getting a college degree is important because it’s a way of getting higher chance of
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Time Value of Money Paper In order to understand how to deal with money the important idea to know is the time value of money. Time Value of Money (TVM) is the simple concept that a dollar that someone has now is worth more than the dollar that person will receive in the future‚ this is because the money that the person holds today is worth more because it can be invested and earn interest (Web Finance‚ Inc.‚ 2007). The following paper will explain how annuities affect TVM problems and investment
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Fin 3322 Time Value of Money Homework 1. Your local travel agent is advertising an extravagant global vacation. The package deal requires that you pay $5‚000 today‚ $15‚000 one year from today‚ and a final payment of $25‚000 on the day you leave two years from today. What is the cost of this vacation in today’s dollars if the discount rate is 6%? 2. The tax rates are as shown. Your firm currently has taxable income of $79‚000. How much additional tax will you owe if you increase your taxable
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