Question
2) Initial investment is 1000 TL, interest rate is 20%, and the investment period is 2 years. A) What is the end-of-period value when interest
2) Initial investment is 1000 TL, interest rate is 20%, and the investment period is 2 years.
A) What is the end-of-period value when interest payments are made annually? (simple)
B) What is the end-of-period value when interest payments are reinvested? (compaund)
3) At the end of the first year, there will be a cash inflow of 10,000 and at the end of the second year, 16,000 TL. Given an annual discount rate of 10%, what is the present value of these cash flows?
4) The cash flows are as follows: 20,000 $ at the end of the first year, 40,000 $ at the end of the second, and 30,000 $ at the end of the third year. What is the value of these cash flows at the end of the third year, assuming an interest rate of 20%?
5) The present value of receiving $1000 every year forever,is what?
6) Calculate the present value of receiving $1000 each year for 5 years.
7) What is the future value of $1000 obtained each year for 5 years at the end of the 5th year?
8) Calculate the present value of receiving $1000 each year for 5 years, if the payments are made at the begining of the period.
9) What is the future value of $1000 obtained each year for 5 years at the end of the 5th year, if the payments are made at the begining of the period?
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