Question: Unit #1 Assignment TIME VALUE OF MONEY ASSIGNMENT Find the following values using the tables: 530.00 a. b. c. d. An initial $500 compounded for
Unit #1 Assignment TIME VALUE OF MONEY ASSIGNMENT Find the following values using the tables: 530.00 a. b. c. d. An initial $500 compounded for 1 year at 6% An initial $500 compounded for 2 years at 6% Sn-fo The present value of $500 due in 1 year at a 6% discount rate r65.90 S400 per year for 5 years at 0% 5. Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Pres) Year Cash Stream A $100 $400 $400 $400 $300 Cash Stream B $300 $400 $400 $400 $100 6. Find the amount to which $500 will grow under each of the following conditions: b. c, d. 12% compounded annually for 5 years 12% compounded semiannually for 5 years 12% compounded quarterly for 5 years 12% compounded monthly for 5 years 7. Find the present value of S500 due in the future under each of the following conditions: a, b, c, 12%, semiannual compounding, discounted back 5 years 12%, quarterly compounding, discounted back 5 years 12%, monthly compounding, discounted back 1 year 8, which amount is worth more at 14%, $1,000 in hand today, or $2,000 due in 6 years
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
