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If you receive $211 at the end of each year for the first three years and $833 at the end of each year for the next three years. What is the present value? Assume interest rate is 4%.

Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer.

Just enter the number up to 2 decimal points. Do not enter $ in the answer box.

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Question 2

Barrett Pharmaceuticals is considering a drug project that costs $198,673 today and is expected to generate end-of-year annual cash flows of $10,454, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?

Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

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Question 3

What should you be willing to pay in order to receive $947 annually forever, if you require 6% per year on the investment?

Just enter the number up to 2 decimal points. Do not enter $ in the answer box.

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Question 4

What is the effective rate of 19% compounded monthly?

Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.

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Question 5

What is the future value of quarterly payments of $517 for 9 years at 6 percent?

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Question 6

What is the future value of $4,482 invested for 14 years at 20% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 7

How many years it will take to grow your money from $4,916 to $6,290 if you can earn an interest of 19% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

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Question 8

Today, you are purchasing a $2,507 7-year car loan at 5 percent. You will pay annually at the end of each year. What is the amount of each payment?

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Question 9

How many years it will take you to double your money if you can earn 9% each year, given that compounding is quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

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Question 10

Assume interest rate of 6%. A company receives cash flows of $77,874 at the end of years 4, 5, 6, 7, and 8, and cash flows of $277,080 at the end of year 10. Compute the future value of this cash flow stream.

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

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Question 11

If the effective rate is 12%. What is the nominal rate if compounding is daily. Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.

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Question 12

What is the future value of $830 invested for 20 years at 18% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 13

How much do you need to invest today in order to have $5,268 at the end of 16 years if you are sure to earn an interest at the rate of 5%? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 14

Gertrude Carter and Co. has an outstanding loan that calls for equal annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest?

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

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Question 15

What is the future value of annual payments of $4,159 for 7 years at 6 percent?

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Question 16

How many years it will take you to quadruple (means 4 times) your money if you can earn 11.63% each year? Note: Do not write “years” in your answer. Simply write the number in the answer box.

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Question 17

What is the future value of $186 for 14 years at 6 percent if interest is compounded semi-annually? Note: Do not enter “$” in your answer. Simply write down the number that you get as your answer.

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Question 18

023A:If you can double your money in 15 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.

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Question 19

027:Say, you deposit $4,561 in a bank for 17 years. What is the amount you will have in the bank at the end of 17 years if interest of 4 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 20

The ABC Company is considering a new project which will require an initial cash investment of $5,305. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $2,535, $5,878, $3,302, and $2,824, respectively. If the appropriate discount rate is 5%, compute the NPV of the project.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

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Question 21

If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?

Answer

a. $828

b. $827

c. $1,176

d. $833

e. $770

Question 22

What is the future value of $2,029 invested for 6 years at 12% if interest is compounded semi-annually (twice a year)? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 23

Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

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Question 24

The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,581 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $156,868. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

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Question 25

Assume interest rate of 10%. A company receives cash flows of $534 at the end of year 5, $213 at the end of year 7, and $912 at the end of year 10. Compute the future value of this cash flow stream.

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

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Question 26

If you can triple your money in 8 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box..

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Question 27

How many years it will take to grow your money from $3,284 to $7,572 if you can earn an interest of 5% compounded monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

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Question 28

If you can double your money in 8 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.

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Question 29

How much do you need to invest today in order to have $5,344 at the end of 19 years if you are sure to earn an interest at the rate of 10%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 30

The ABC Company is considering a new project which will require an initial cash investment of $10,077. The projected cash flows for years 1 through 4 are $6,379, $8,117, $9,346, and $4,508, respectively. If the appropriate discount rate is 10%, compute the NPV of the project.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

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Question 31

Assume interest rate of 3%. Suppose that you receive $107,219 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

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Question 32

How many months it will take to grow your money from $4,694 to $6,134 if you can earn an interest of 12% compounded monthly? Note: Do not write “months” in your answer. Simply write the number in the answer box.

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Question 33

In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years.

Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enter the answer rounded off to two decimal points.

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Question 34

How much do you need to invest today in order to have $3,763 at the end of 27 years if you are sure to earn an interest at the rate of 11%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 35

026:Say, you deposit $1,557 in a bank for 18 years. What is the amount you will have in the bank at the end of 18 years if interest of 8 % for first 7 years and interest of 8 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

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Question 36

Kelly starting setting aside funds 10 years ago to buy some new equipment for her firm. She has saved $4,755 each quarter and earned an average rate of return of 9 percent. How much money does she currently have saved for this purpose?