P3-4. Dixon Shuttleworth has been offered the choice of three retirement-planning investments. The first investment offers a 5 percent return for the first 5 years, a 10 percent return for the next 5 years, and a 20 percent return thereafter. The second investment offers 10 percent for the first 10 years and 15 percent thereafte
Deposits of $8 are made in an account every third year. if the rate of interest is 1% per year, what will be the FutureValue of these deposits in year 1001. (note that deposits are made every third year
1st. deposit in year 3
2nd. deposit in year 6
3rd. deposit in year 9
and so on.
P4-4 Futurevalues For each of the cases shown in the following table, calculate the
futurevalue of the single cash flow deposited today that will be available at the
end of the deposit period if the interest is compounded annually at the rate specified
over the given period.
Case Single cash flow Interest rate Deposit peri
Paradise, Inc., has identified an investment project with the following cash flows. If the discount rate is 8%, what is the the futurevalue of these cash flows in year 4. What is the futurevalue at a discount rate of 11%?At 24%?
Year Cash Flow
1 $ 700
Paradise, Inc., has identified an investment project with the following cash flows. If the discount rate is 17 percent, the futurevalue of these cash flows in year 4 is $????.
Year Cash Flow
5. (Computation of FutureValues and Present Values) Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.)
a. What is the futurevalue of $7,000 at the end of 5 periods at 8% compounded interest?
b. What is the present value of $7,000 due 8 periods hence, disc
The price in last week's National Lottery was estimated to be worth £35 million. In the lottery, if you were lucky enough to win, the National Lottery will pay you £1.75 million per year over the next 20 years. Assume that the first instalment is received immediately.
a) If interest rates are 8%, what is the present value