QUESTION 1 If I deposited $5,242 today, how much would it be worth 13 years from
ID: 1161231 • Letter: Q
Question
QUESTION 1 If I deposited $5,242 today, how much would it be worth 13 years from now if the interest rate is 3%? QUESTION 2 Calculate the value of the following cash flows in today's worth if the interest rate is 2% Year End of year payment $1.466 2 S9,516 $8,530 4$5,312 QUESTION 3 Suppose you deposited $11,251 today with a guaranteed rate of return of 16.5% per year. 4 years later you invest $5,830 in another account guaranteed to return 12.8%. What will be the total amount you can withdraw 15 years from today QUESTION 4 If you spend S5,938 today, but save S13,475 2 year from today and $11,472 6 years from now, how much are these cash flows worth 11 years from today? Assume 1-296 QUESTION5 1 years from now, you expect to make a capital investment worth 353,741 at that time. How much will that investment cost 6 years from now if the TVOM is 18% per yearExplanation / Answer
1) FV = 5242 x (1 + 3%)13 = $ 7698.05
2) PV = 1466/1.02 + 9516/1.022 + 8530/1.023 + 5312/1.024 = $ 23529.21
3) FV = 11251 x (1 + 16.5%)15 + 5830 x (1 + 12.8%)11 = $ 133125.17
4) FV = - 5938 x (1 + 2%)11 + 13475 x (1 + 2%)9 + 11472 x (1 + 2%)5 = $ 21386.73
5) FV = 353741 x (1 + 18%)(6 - 1) = $ 809273.7
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