Question: Part 1: What is the future value at the end of year 3 of the following set of cash flows if the interest rate is

Part 1:

What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter in the following format 12345.67)

Year 0 cash flow = 1000

Year 1 cash flow = 1100

Year 2 cash flow = 200

Year 3 cash flow = 2500

Answer:

Part 2:

An insurance company is offering quarterly payments of $720 for the next25 years in exchange for a one-time payment of $18,000 today. What is the per annum rate of return on this offer? (Round to nearest 100th of a percent and enter your answer as a percentage, for example, as 12.34)

Answer:

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 9%? (the cash flows occur at the end of each period) (round answer to nearest penny and enter...

What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? Year 0 1 2 3 Cash Flow -$1,500 $100 $100 $1,600 O a. -$64.93 O b. $366.89 O c. $1,824.64 O...

What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? 1 31 Year 0 $1.500 $100 $100 Cash Flow $1,600 $1,824.64 -$64.93 $2,698.13 $3,714.21 $366.89

D Question 21 1 pts What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? Year Cash Flow -$1,500 2 $100 $100 $1,600 $1.824.64 53.714.21...

What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 8%? Year Cash Flow $1,824.64 -$64.93 $2.698.13 $3,714.21 $366.89 Ol $1,500 1 $100 2 $100 3...

What is the future value at the end of year 3 of the following set of cash flows if the interest rate is 14% ? a. $649.32 b. $268.88 c. so d. $316.72 e. $469.23

Given the following cash flows, what is the total present value if the discount rate is 8%? Year 1 2 3 4 5 6 Cash Flow $50 $200 $0 SO SO $800 a. b. c. d. e. $482.72 $661.68 $697.25 $721.90 $852.83 2....

QUICKQUESTIONS PLEASE: Question 1 Asset A has a beta of 1.3. The risk-free rate of return is 3 per cent, while the return on the market portfolio of assets is 9 per cent. The asset's required rate of...

1.You have $50,000 in an account, which pays 5% compound interest. How much additional dollars of interest would you earn over four years if you moved the money to an account earning 6%? 2.What is...

What is the future value at the end of year four of the following set of end-of-year cash flows? Assume an interest rate of 8 percent. Year Cash Flow 1 $1,000 2 -$1,000 3 $1,000 4 -$1,000 A) $0.00 B)...

Using Taylor Series to find the solution of ODE 4xy + 2y + y = 0n

A centrifugal pump of 25 cm impeller diameter running at 1450 rpm, develops a head of 15 m. If the outlet flow area is 480 cm, and discharging water 0.12 m/s, and loss of head in the pump can be...

LEONARDO COMPANY PARTIAL BALANCE SHEET DECEMBER 3 1 , 2 0 X 1 LEONARDO COMPANY PARTIAL GENERAL LEDGER ALLOWANCE FOR DOUBTFUL ACCOUNTS ACCOUNT NO . 1 1 4 \ begin { tabular } { | c | c | c | c | | c |...

A random sample of 43 biology students in a science program are selected for a study. Of those selected, only 27 passed the mid term exam. At the 5% significance level, is there sufficient evidence...

1. Compare two organizations that you belong to or have regular contact with (such as a social organization, a volunteer organization, or a company). What type of management approach does each of...

3. In this chapter, we talked about some of the challenges that todays organizations face, including work-life balance, sexual harassment, and communication technology. Does your organizationbe it a...

4. Its Tuesday, and you arrive home at 5:30 p.m. How do your housemates or family react? A. They say hello and discuss dinner plans. B. They act surprisedthey never know if youll be on time or not....