Question
1. If you require a rate of return of 16.5%, how much would the future value be at the end of the last year from
1.
If you require a rate of return of 16.5%, how much would the future value be at the end of the last year from the following cash flow stream?
Answer just the dollar amount without the + or - sign. Round to the nearest dollar.
Years: | 0 | 1 | 2 | 3 | 4 |
CFs: | $0 | $75 | $225 | $0 | $300 |
2.
What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $1,000?
Answer just the dollar amount without the + or - sign. Round to the nearest dollar.
3. Suppose a bond will pay $4,500 ten years from now. If the going interest rate is 5.70% for this bond's risk class, how much is the bond worth today?
Answer just the dollar amount without the + or - sign. Round to the nearest dollar.
4. You want to commercialize your innovation 4 years from now, and you plan to save $5,900 per year, beginning immediately. You will make a total of 4 such deposits in an account that pays 5.7% interest. How much will you have 4 years from today?
Answer just the dollar amount without the + or - sign. Round to the nearest dollar.
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