Instructions: The task to be carried out consists of quantitative problems applying the techniques of Time Value of Money, you must write the formula used 1. Carlos has $ 75,000 to invest. He decides to deposit them at a yield of 10% compounded monthly. He would like to know how much he could withdraw each month for life of your investment, without having to touch the principal. (5 points) O 2. The Santisteban firm wants to determine what it must pay to buy an investment That could give you cash flows of $ 11,000 at the end of each of the next 7 years. The required return is 12% per annum, compounded semi-annually. (5 points) 3. What annual interest rate, compounded semi-annually for 5 years, will be needed for a $ 4,000 investment, grow to $ 15,000. (5 points) Enolish Puerto Rico Search d e Font Paragraph 4. If Javier, now 35 years old, deposits $5,000 into a savings account that pays 16% annual interest, compounded quarterly, how much will you have in the account at the end of your 40 birthday? (5 points) 5. Jeffry has the opportunity to receive $ 24,300, seven years from now. If he can win a 8% per annum, compounded semi-annually on your investment, how much is the maximum that it owes pay now for this opportunity? (5 points) 6. The Velez Company has an opportunity to receive the following cash flows at the end of the next 5 years on an investment. If the company has to earn at least 14% compounded annually on their investment, the most they should pay for this opportunity it is ? (5 points) End of the year 1 2 3 4 4 Flows of cash 21,000 18,500 13,200 9,000 5,500 English Puerto Rico 10. Igor wants to make a loan in the amount of $ 25,000. They offer you an interest rate of 5% annual, compounded annually to be paid over 4 years. Prepare an amortization plan for the loan. (6 points) year payment interest Principal Balance 1 2 3 4 11. Calculate the Net Present Value (NPV) applying the valuation techniques for the budget of capital of the following two projects that a company is evaluating. The rate of return assumed is 11% per year, computed annually. Assumes an initial investment of $ 28,000 for A and $ 35,000 for B. Then answer: What project should the firm take into consideration, if both projects are assumed to be "Mutually Exclusive"? Explain Projecto A Projecto B the reason for your reply. (6 points) Flujos de Efectivo S 7000 $ 7.0005 8.000 7000S 7.000 7,000 5 1 2 3 9.000 9,000 7.000 $ $ $ $ S 5 6.000 erto Rico 7. Let's assume that one of your dreams is to invest in the purchase of an apartment in 7 years from now; you estimate that the "down payment" at that time will be $ 45,000. How much do you need to deposit at the end of each year in the next 7 years to accumulate the $ 45,000 if you can earn 8% annually compound semi-annually on your deposits? (5 points) 8. Juan wants to open an account into which he hopes to deposit the following at the beginning of each year: 1:$ 15,200; 2: $ 11,300; 4: $ 10,000. If the rate of return you get in a bank is 7%, computed annually, how much will you have at the end of year in your investment? (Hint: draw the timeline not to fail this problem) (5 points) 9. Jalme wants to invest $ 1,200 in an account at the beginning of each of the next 15 years at a 10% per annum computed semi-annually. The total value of the account will then be left to compose for 10 additional years at an annual 12% computed annually and Jalme may receive certain amount at the end of each of the last 10 years. How much could Jaime get to end of each year for the last 10 years? (6 points) bith DR
