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8) Determine the equivalence uniform serious over (1,5) for the below cash flow at i-8%: 1 2 3 4 6 year CF (SR) 5 3000

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8) Determine the equivalence uniform serious over (1,5) for the below cash flow at i-8%: 1 2 3 4 6 year CF (SR) 5 3000 2000 2000 2000 2000 5000 a. (2000 (P/A 8%, 6) + 3000 (P/F 8%, 5) + 5000 (P/F 8%, 6)) (A/P 8%, 5) b. (2000 (P/A 8%, 4)+ 3000 (P/F 8%, 5) + 5000(P/F 8%, 6)) (A/P 8%, 6) c. (2000 (P/A 8%, 6) + 1000 (P/F 8%, 5) + 3000 (P/F 8%, 6)) (A/P 8%, 5) d. (2000 (P/A 8%, 4) + 1000 (P/F 8%. 5) + 3000 (P/F 8%, 6)) (A/P 8%, 5) 9) Consider the following cash flow series. At 6% per year compounded annually, Calculate the present worth of the below cash flow series? year 0 1 2 3 4 5 6 7 8 CF (SR) -10,000 6,500 6,000 5,500 5,000 4.500 4,000 3.500 3.000 a. 20,415.8 b. 6,781.5 c. 48.663.3 d. Cannot be measured 10) Consider a cash flow and interest profile as shown below: year 0 2 3 -10,000 CF at EOY (SR) Interest rate (%) 6,500 6 6,000 5,500 8 10 The formula to be used for finding the equivalent annual worth for the above cash flow from the present worth is: a. A(P/F 6%, 1)+A(F/P 8%, 1)(P/F 6%, 1)+A(F/P 10%, 1)(F/P 8%, 1)(P/F 6%, 1) b. A(A/P 6%, 1){1+(A/P 8%, 1)(A/P 8%, 1)(A/P 10%, 1); c. A(A/F 6%, 1)+A(A/P 8%, 1)(A/F 6%, 1)+A(A/P 10%, 1)(A/P 8%, 1)(A/F 6%, 1) d. A(P/F 6%, 1){1+(P/F 8%, 1)+(P/F 8%, 1)(P/F 10%, 1)) 11-13) A SR100,000 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: 11) The interest rate that should be used to solve this problem. a. 5% b. 3% c. 1% d. 12% 12) Assume the answer of the previous question is 5% compounded monthly, determine the size of the first withdrawal: a. SR 4,401 b. SR 2.205 c. SR 8.019 d. SR 6,321 13) Assume the first withdrawal is SR 5000, what is the size of the 8th withdrawal a. SR 4,340.63 b. SR 3,491.69 c. SR 4,253.81 d. SR 5,231.22 14) Determine the present worth of the following cash flow at an interest rate of 10% compounded continuously: year CF (SR) 1 2000 2 2000 3 2000 5 4000 2000 a. SR 8,202.5 b. SR 5,560.83 c. SR 8,695.54 d. SR 8,089.01 15-16) Khalid borrowed SR 15,000 at 8% and his payments are scheduled as follows: 1 EOY CF 2 -X 3 - 2X 4 -3X 5 -4X 0 15) Calculate the value of X that the loan is fully repaid. a. SR 3,483.79 b. SR 2,034.6 c. SR 1.890.4 d. SR 1.821.07 16) Assume the payments will be a uniform series from 12,5). a. SR 4,588.60 b. SR 4,441.69 c. SR 5,540,07 d. SR 4.891.1 17) How long does it take approximately for money to double in value if you earn 8%? a. 8 Years and 7 months b. 9 years. c. 14 years and 3 months d. 22 years and 6 months 18) For the below cash flow, the correct notation to find the present worth at 10% interest rate is: year CF (SR) 2 4000 3 3000 5 1000 6 2000 5000 2000 a. 5000 (P/A 10%, 6) - 1000 (P/G 10%, 6) b. 5000 (P/A 10%, 5) + 2000 (P/A 10%, 5) - 1000 (P/G 10%, 5) c. 5000 (P/A 10%, 5)-1000 (P/G 10%, 5) + 2000 (P/F 10%, 6) d. 5000 (P/A 10%, 6)- 1000 (P/A 10%, 6) +2000 (P/F 10%, 6) 19) The correct notation to be used for finding the present value of SR 200 at the 35th year at 8 % interest rate is: a. 200 (P/F 8%, 30) + 200 (P/F 8%, 5) b. 200 (P/F 8%, 30) (P/F 8%, 5) e. 200 (P/F 8%, 15) (A/F 8%, 15) (P/F 8%, 5) d. 200 (P/F 8%, 5) (P/F 8%, 20) (P/F 8%, 5) 20-22) You have the following cash flow, determine the following: (Assume i -10%) year CF (SR) 1 2000 2 3000 3 4000 4 5000 5 6000 6 2000 20) Determine the present worth equivalent of the above cash flow a. SR 15,572.32 b. SR 18,394.67 c. SR 16,618.16 d. none of the above d. None of the above 21) Determine the future worth equivalent of the above cash flow a. SR 26,370.8 b. SR 27,587.3 c. SR 26,370.8 22) Determine the annual worth equivalent of the above cash flow a. SR 2,520.2 b. SR 3,575.56 c. SR 3,594.84 d. none of the above

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