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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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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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 Rs.7000 4 Rs. 10000 Q.4 What is the present value of a 4-year annuity‚ if the annual interest is 5%‚ and the annual payment is $1‚000
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Many people play the lottery each and every day in hopes of one day receiving a large sum of money without the hassle of working hard for many years. While this many seem like the easy way out‚ winning the lottery for some can also be hard work that doesn’t always pay off but when it does the possibilities are endless. Out of everything I could possibly do‚ winning the lottery would allow me to travel to many places not only around the united states but also across seas to different islands and
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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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Retirement Plan Matthew Birkebak Marisela Valadez Alatorre Odds of winning the lottery • Chances of winning the lottery. • Odds for both the Mega Millions and Powerball. • Percentage of new friends after winning the lottery. • Odds of losing the money awarded from a lottery win. • Second chance drawings. Mega Millions Odds of winning:1 in 259 million on the jackpot $656M‚ Mega Millions‚ March 30‚ 2012 is the largest jackpot with 75 million tickets sold for drawing. Odds of
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Lottery Winnings – Looks Can Be Deceptive! State-sponsored lotteries are extremely popular and highly successful methods by which state governments in many countries raise much needed funds for financing public expenses‚ especially education. In Michigan alone‚ during the year 2000‚ Michigan Lottery reported annual sales of $1.69 billion in fiscal 2000‚ and generated $618.5 million in net revenue for the state School Aid Fund‚ supporting public education (K-12) programs throughout the state. Retailers
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Finance Tutorial: Time Value of Money Lecturer: Email: Dr. Thomas Conlon conlon.thomas@ucd.ie Tutorial Questions 1. What is the present value of a 3-year annuity of $100 if the interest rate is 6%? What is the present value of this annuity‚ if you have to wait two years instead of one year for the first payment? 2. Your hedge fund can lease a supercomputer for the purposes of high frequency trading for $8‚ 000 per year (paid at year end) for six years. Alternatively‚ it can buy the computer
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won the 202 million dollar Powerball. I already have my winnings mapped out if I was to win the Powerball. I would make sure my family is finically set. Continue living my day to day life. I would invest into something nonprofit. With that said let me tell you how I would spend my winnings. Making sure my family is finically set would consist of: Paying all of our debt off. Making sure my children’s education is paid for and they have money for the rest of their life. I would make sure my parents
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2012 somebody in Iowa won the 202 million dollar Powerball. II. Thesis: I already have my winnings mapped out if I were to win the Powerball. III. Preview of Main Points: a. I would make sure my family is finically set. b. Continue living my day to day life. c. I would invest into something nonprofit. Transition: With that said let me tell you how I would spend my winnings. Body I. Main Point 1: Making sure my family is finically set would consist of a
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