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- Nominal and effective series A series of equal quarterly payments of $2,000 for 12 years is equivalent to what future lump-sum amount at the end of 20 years at an interest rate of 9% compounded continuously? Draw cash flow diagram and solve using factors methodConsider the following three cash flow series: End of Year Cash Flow Series A Cash Flow Series B Cash Flow Series C -$1.000 -$2,680 Y 1 $2,990 1.5X $2,690 Y 3 2.0X $2,390 2Y 2.5X $2,090 2Y 3.0X $1,790 2Y Determine the values of X and Y so that all three cash flows are equivalent at an interest rate of 14% per year compounded yearly. X: $ Y: $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is t5.Consider the cash flow transactions with the changing interest rates specified as depicted in Figure below, calculate the net present worth of these transactions. 0 10% interest, compounded yearly 100 200 2 10% interest, compounded monthly 300 300 4 10% interest, compounded quarterly 300 300 6 10% interest, compounded continuously year
- 10. A man borrowed P180,000 from a lending firm for 6 years at 9% compounded quarterly. At the end of 6 years, it renews the loan for the amount due plus P80,000 more for 6 years at 4 % compounded monthly. Determine the value of money at the end of the extended period? Show the Cash Flow Diagram. State your reference period in the solution as reflected in the diagram. Note: Use only two decimal places for the final answer and four decimal places for the solutions. Answer the problem with the given Format: Given, Required, Solution, Answer. Thank you!Compute for the effective interest rate every 3 months Nominal rate = 17.02% compounded continuouslyWhat is the amount of 10 equal annual deposits that can provide five annualwithdrawals, when a first withdrawal of $3,000 is made at the end of year 11 and subsequent withdrawals increase at the rate of 6% per year over the previous year's rate if(a) the interest rate is 8% compounded annually?(b) the interest rate is 6% compounded annually?
- Addy plans to deposit her annual bonus into a savings account that pays 4% interest compounded annually. The size of her bonus increases by $1000 each year, and the initial bonus amount she will deposit at the end of year 1 is $2500 a) Determine how much will be in the account immediately after the 6th deposit. b) What's the future value if she only plans to deposit her annual bonus for 8 years C) What's the future value if she only plans to deposit her annual bonus for 8 years (the last deposit is at the end of year 8 but also plans to skip the deposits at the end of vears 3 and 6?If you borrow $4,000, what single payment must you make after 5 years to repay the principal and interest at 10%? Alternatively, what uniform annual payment would be required? 2. The interest rate charged on a small loan is 1.5% per month. What are the corresponding 'nominal' and 'effective' rates per annum? 3. Using the interest rate of 3% compounded annually, what is the amount that will be accumulated in a sinking fund at the end of 15 years if $200 is deposited in the fund at the beginning of each of the 15 years if $200 is deposited in the fund at the beginning of each of the 15 years?A geometric gradient that increases at f= 5% per year for 15 years is shown in the accompanying diagram. The annual interest rate is 10%. What is the present equivalent value of this gradient? AClick the icon to view the diagram for geometric gradient values. Click the icon to view the interest and annuity table for discrete compounding when i= 5 % per year. Click the icon to view the interest and annuity table for discrete compounding when i= 10% per year. 4... The present equivalent value of the gradient is $ (Round to the nearest dollar.)
- a) An individual deposits $8,000 semiannually every six months into a savings account. How much does the individual have at the end of 8 years, assuming that she is able to invest her funds at a nominal rate of 14% compounded semiannually?NEED HELP ASAP! THANK YOU!An accountant is entitled to received 35,000 pesos at the beginning of each year for 18 years. What is the present value in pesos of this annuity at the time he is suppose to receive the first payment if the rate of interest is 3% compounded annually?What is the amount of the quarterly deposits A such that you will be able to withdraw the amounts shown in the cash flow diagram if the interest rate is 12% compounded quarterly? 12% Compounded quarterly $2,800 $1,000 2 3 4 5 6 7 mim 1 A (Deposit) Quarters 1 The amount of the quarterly deposits A should be $. (Round to the nearest dollar.) Q