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Posted on Sep 06, 2024

6) Consider a cash flow and interest profile as shown below: year 1 CF at EOY (SR) -10,000 6,500 Interest rate(%) 6 6,000 5.500 10

6) Consider a cash flow and interest profile as shown below: year 1 CF at EOY (SR) -10,000 6,500 Interest rate(%) 6 6,000 5.500 10 The formula to be used for finding the equivalent annual worth for the above cash flow from the present worth is: 1. MPF 6%, 1)+A(FP8%, 1%PF 6%, 1)+A(FIP 10%, 1(FP8%, IPF 6%, 1) b. A/NP6%, DHAP 8%, 1HAP 8%, IMAP 10%, 1) C.MP/F 6%,1)+A(PF 8%, IMPIF %, 1)+A(PF 10%, 1PF 8%, 1XPF 6%, 1) d. A(PF 6%, DEPF 8%, DHCPF 8%, IXPF 10%, 1); 7-9) A SR 100,000 is invested into a fund pays an interest of 12.12%/year quarter in order to make 36 monthly withdrawals. Each withdrawal decreased by 2% from the previous one and the first withdrawal will be made 2 months after the investment. Determine the following: 7) The interest rate that should be used to solve this problem. c.1% 8) Assume the answer of the previous question is 5% compounded monthly, determine the size of the first withdrawal: a. SR 4.401 1. SR 2,205 c. SR8,019 d.SR6,321 9) Assume the first withdrawal is SR 5000, what is the size of the 8th withdrawal a SR 4.140.63 b. SR 3,491.69 CSR 4,253.81 d. SR 5.231.22 10) Determine the present worth of the following cash flow at an interest rate of 10% compounded continuously: year 1 2 3 4 CF (SR) 1000 1000 1000 4000 a SR 8.202.5 b. SR 5.560.83 CSR 8,695.54 d. SR 8,08901 11) If someone offers you the choice of receiving S1000 today versus receiving S1 100 a year from today, you should take the money today only if your time value of money is d. 10% 6) Consider a cash flow and interest profile as shown below: year 1 CF at EOY (SR) -10,000 6,500 Interest rate(%) 6 6,000 5.500 10 The formula to be used for finding the equivalent annual worth for the above cash flow from the present worth is: 1. MPF 6%, 1)+A(FP8%, 1%PF 6%, 1)+A(FIP 10%, 1(FP8%, IPF 6%, 1) b. A/NP6%, DHAP 8%, 1HAP 8%, IMAP 10%, 1) C.MP/F 6%,1)+A(PF 8%, IMPIF %, 1)+A(PF 10%, 1PF 8%, 1XPF 6%, 1) d. A(PF 6%, DEPF 8%, DHCPF 8%, IXPF 10%, 1); 7-9) A SR 100,000 is invested into a fund pays an interest of 12.12%/year quarter in order to make 36 monthly withdrawals. Each withdrawal decreased by 2% from the previous one and the first withdrawal will be made 2 months after the investment. Determine the following: 7) The interest rate that should be used to solve this problem. c.1% 8) Assume the answer of the previous question is 5% compounded monthly, determine the size of the first withdrawal: a. SR 4.401 1. SR 2,205 c. SR8,019 d.SR6,321 9) Assume the first withdrawal is SR 5000, what is the size of the 8th withdrawal a SR 4.140.63 b. SR 3,491.69 CSR 4,253.81 d. SR 5.231.22 10) Determine the present worth of the following cash flow at an interest rate of 10% compounded continuously: year 1 2 3 4 CF (SR) 1000 1000 1000 4000 a SR 8.202.5 b. SR 5.560.83 CSR 8,695.54 d. SR 8,08901 11) If someone offers you the choice of receiving S1000 today versus receiving S1 100 a year from today, you should take the money today only if your time value of money is d. 10%