Question: Part III. Exercises and Problems (43 points) A. For each of the cases shown in the following table, calculate the present value of the cash
Part III. Exercises and Problems (43 points) A. For each of the cases shown in the following table, calculate the present value of the cash flow, discounting the rate given and assuming that the cash flow is received at the end of the period noted. A Case Single cash flow (8) Discount Rate End of Period Present Value (%) 37,000 12 9 25,000 12 20 40,000 E 4,500 5 20 B C 200 10 5 9 D 10 B. For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today at the end of the deposit period if the interest is compounded annually ar the rate specified. A B Case Single cash flow (8) Discount Rate End of Period Future Value 45,000 12 150,000 8 20 28,000 10,000 7,000 20 14 12 D 11 6 E C. For each of the cases shown in the following table, calculate the present value of the annuity, assuming that it is (1) An ordinary annuity, (2) An annuity due. A B Case Amount of Annuity Interest Rate Deposit Period Ordinary Annuity Annuity Due 37,000 25,000 200 4,500 (%) 12 10 5 5 9 12 20 20 D
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