Question
Calculate the following Time Value of Money problems a) If I am to receive $10,000 in 5 years and given a 5% rate of return,
Calculate the following Time Value of Money problems a) If I am to receive $10,000 in 5 years and given a 5% rate of return, what would be present value of this amount b) If I put $7,000 in the bank at 3% interest for 10 years , what is the future value of that amount c) If I deposit $1,000 a year into an account for 10 years at 2%, what is the future Value of that account d) what is the present value of $1,000 a year deposited for 10 years at 4% interest. ---these questions were answered.
a. Present value of this amount = 10,000/1.055 = 7,835.26
b. future value of the amount = 7,000 * 1.0310 = 9,407.41
c. N = 10, PV = 0, rate = 2%, PMT = 1000
use FV function in Excel
Future value = 10,949.72
d. PMT = 1000, FV = 0, rate = 4%, N = 10
use PV function in Excel
present value = 8,110.90
A maximum of 4 subsections can be answered, please raise new request for more answers
I need help with the questions below:
1. Please explain what is a callable bond .
2. Why would a firm call a bond and what are the major risks of conducting business outside of your domestic environment.
3. Why would you consider conducting business internationally
4. What are the major risks of conducting business outisde of your domestic environment
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