(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $14,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $28,000 in the last year (period 16)? Assume an interest rate of 12 percent.
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- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $13,000 a year for the next 7 years (periods 11 through 17) plus an additional amount of $26,000 in the last year (period 17)? Assume an interest rate of 7 percent. The amount of money you have to deposit today is (Round to the nearest cent.) www( Present value of complex cash flows ) How much do you have to deposit today so that beginning 11 years from now you can withdraw $ 8,000 a year for the next 7 years ( periods 11 through 17 ) plus an additional amount of in the last year ( period Assume an interest rate of 9 percent . \$16.000; 17)? The amount of money you have to deposit today is ( Round to the nearest cent . )
- (Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $7,000 a year for the next 6 years (periods 11 through 16) plus an additional amount of $14,000 in the last year (period 16)? Assume an interest rate of 6 percent. The amount of money you have to deposit today is $ ☐ (Round to the nearest cent.)much is it worth? (See Problem 1.) Future Value with Multiple Cash Flows You plan to make a series of deposits in an interest-bearing account. You will deposit $1,000 today, $2,000 in two years, and $8,000 in five years. If you withdraw $3,000 in three years and $5,000 in seven years, how much will you have after eight years if the interest rate is 9 percent? What is the present value of these cash flows? (See Problem 3.) 5.2 You ore loking into an inyestment that will pay you(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $12,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $24,000 in the last year (period 15)? Assume an interest rate of 12 percent. The amount of money you have to deposit today is Vis S COLLE (Round to the nearest cent)
- Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $14,000 a year for the next 5 years (periods 11 through 15) plus an additional amount of $28,000 in the ast year (period 15)? Assume an interest rate of 11 percent. The amount of money you have to deposit today is $ (Round to the nearest cent.) ...You are expecting to receive a payment of $5969 in 2 years and $9869 in 6 years. If the interest rate is 14.61%, how much are these cash flows worth today? Answer:You will receive $100 one year from today and another $100 two years from today. The interest rate for the first year is 1%, but rates are expected to rise to 5% in the second year. What is the present value of the cash flows? Round your answer to two decimal places.
- What lump sum would have to be deposited today into an account bearing interest of 10% per year to provide withdrawals of $1000 at 8,9,10,11 years from today? (provide cash flow diagram with solution) please provide the cash flow diagram and explain your answer.(Present value of complex cash flows) You have an opportunity to make an investment that will pay $100 at the end of the first year, $300 at the end of the second year, $500 at the end of the third year, $300 at the end of the fourth year, and $200 at the end of the fifth year. a. Find the present value if the interest rate is 7 percent. (Hint: You can simply bring each cash flow back to the present and then add them up. Another way to work this problem is to either use the = NPV function in Excel or to use your CF key on a financial calculator-but you'll want to check your calculator's manual before you use this key. Keep in mind that with the NPV function in Excel, there is no initial outlay. That is, all this function does is bring all the future cash flows back to the present. With a financial calculator, you should keep in mind that CF, is the initial outlay or cash flow at time 0, and, because there is no cash flow at time 0, CF = 0.) b. What would happen to the present value of…(Present value of complex cash flows) You have an opportunity to make an investment that will pay $100 at the end of the first year, $100 at the end of the second year, $300 at the end of the third year, $400 at the end of the fourth year, and $200 at the end of the fifth year. a. Find the present value if the interest rate is 11 percent. (Hint: You can simply bring each cash flow back to the present and then add them up. Another way to work this problem is to either use the =NPV function in Excel or to use your CF key on a financial calculator—but you'll want to check your calculator's manual before you use this key. Keep in mind that with the =NPV function in Excel, there is no initial outlay. That is, all this function does is bring all the future cash flows back to the present. With a financial calculator, you should keep in mind that CF0 is the initial outlay or cash flow at time 0, and, because there is no cash flow at time 0, CF0=0.) b. What would…