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What single amount on april 1, 2012 is equivalent to a series of equal, semiannual cash flows of $1000 that starts with a cash flow on january 1, 2010, and ends with a cash flow on January 1, 2019? the interest rate is 14% and compounding is quaterely.

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Joshua Stredder
Joshua StredderLv10
28 Sep 2019

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Related questions

A bank account pays 12% nominal interest with quarterly compounding. A series of deposits started with a deposit of $5,000 on January 1, 2012. Deposits in the series will occur every six months. The last deposit in the series will occur on July 1, 2015. What balance will the account have on July 1, 2020, if the balance was zero prior to the first deposit and no withdrawals are made? Assume July 1, 2011, as time zero.

What is the present worth (that is, the equivalent value of the cash flows at year 0) of the cash flows in the table below? Use an interest rate of 6% compounded annually. Year 1 2 3 4 5 6-20 Cash flow 6,000 5,000 4,000 3,000 2,000 10,000 $85,496 $89,263 $89,916 $91,611

1 Two sets of cash flows are shown in the table below. If these sets are equal at 8% interest rate, determine the unknown value, X.

Year 0 1 2 3 4 5
Cash Flow, Series I $125 $100 $75 $50 $25 $0
Cash Flow, Series II $X $2X $3X $4X $5X $7X

2 A deposit of $10,000 now at a interest rate of 10% per year will accumulate in 20 years to an amount equal to _______________.

A.

$54,600
B.

$61,500
C.

$67,280
D.

$51,900

3 Which of the following relationships between compound interest factors is not correct?

A.

Single Payment Compound Amount Factor and Single Payment Present Worth Factor are reciprocals.
B.

Sinking Fund Factor and Uniform Series Compound Amount Factor are reciprocals.
C.

Capital Recovery Factor and the Sinking Fund Factor are reciprocals.
D.

Capital Recovery Factor and Uniform Series Present Worth Factor are reciprocals.

4 What is the present worth of a series of ten deposits of $200 per year at 6% made at the end of each year?

A.

$1,672
B.

$1,072
C.

$1,272
D.

$1,472

5 Determine the net present worth (NPW) of the following cash flows using an interest rate of 7%.

Year

0

1

2

3

4

5

6

7

8

Cash Flow,$

-12,000

2,000

2,000

2,000

2,000

2,000

2,500

3,000

3,500

A.$2,771.05

B.$2,500
C.$1,500
D.$1,771.05

6 At Kal Tech Manufacturing Inc, the time required to make the first unit of an engineered product is 64.1 minutes. Determine the time required for 16th unit if the learning curve percentage is 90%.

A.

42.1 minutes
B.

29.53 minutes
C.

36.45 minutes
D.

20.89 minutes

7 A sum of $994.62 deposited at time

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