The nominal rate of interes: per annum convertible quarterly is 2% Calculate the present value of...

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The nominal rate of interes: per annum convertible quarterly is 2% Calculate the present value of a payment stream paid at a rate of €100 per annum, monthly in advance for 12 years. Describe the characteristics of a repayment loan (or repayment mortgage) The following table shows the cashflows paid into a find on three different dates, together with the value of the fund on each date immediately before the cash flow takes place. There were no other cash:lows except on the dates shown. 1 January 2014 1 January 2015 1 January 2016 Value of fund (2m) Cash flow (Em) 112 23 43 160 32 [3] During 2014, the rate of return on the fund was 10% per annum effective. (i) Calculate X. [1] (ii) Calculate, showing all workings, the annual effective time weighted rate of return on the fund over the two-year period from 1 January 2014 to 1 January 2016. [3] [Total 4] The nominal rate of interes: per annum convertible quarterly is 2% Calculate the present value of a payment stream paid at a rate of €100 per annum, monthly in advance for 12 years. Describe the characteristics of a repayment loan (or repayment mortgage) The following table shows the cashflows paid into a find on three different dates, together with the value of the fund on each date immediately before the cash flow takes place. There were no other cash:lows except on the dates shown. 1 January 2014 1 January 2015 1 January 2016 Value of fund (2m) Cash flow (Em) 112 23 43 160 32 [3] During 2014, the rate of return on the fund was 10% per annum effective. (i) Calculate X. [1] (ii) Calculate, showing all workings, the annual effective time weighted rate of return on the fund over the two-year period from 1 January 2014 to 1 January 2016. [3] [Total 4]

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Solution 1 Present value of payment stream The nominal rate of interest per annum convertible quarterly is 2 which means the quarterly rate of interes... View the full answer