Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Future Value Problems Problem #1 On January 1, 20x0, Company D plans to invest in an investment that requires annual cash outflow of Php5,000 for

Future Value Problems

Problem #1

On January 1, 20x0, Company D plans to invest in an investment that requires annual cash outflow of Php5,000 for first 5 years and another Php6,000 for last 5 years starting on December 31, 20x0 and compounded annually. The prevailing interest rate of this kind of investment is 10% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Problem #2

On January 1, 20x0, Company E plans to invest in an investment that requires cash outflow of Php3,000 every June 30 th and December 31 st of each year for 5 years. The prevailing interest rate of this kind of investment is 10% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Problem #3

In an invest entered by Company F on January 1, 20x0, it requires Php8,000 annual payment that started upon entering in the contract and will earn 11% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Problem #4

Company G entered in an investment that requires down payment of 40% with the equivalent amount of Php35,000 upon entering the contract, 45% will be paid after 1 year of the investment and the remaining 15% will split to 3 annual installments on the succeeding years. The investment will mature after 10years and earns interest of 11% annually. What is the value of the investment upon maturity? (Round your FV factor in 3 decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Financial Management

Authors: Eugene F. Brigham, Joel F. Houston

15th edition

1337671002, 978-1337395250

More Books

Students also viewed these Finance questions