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Please answer G IRST NATIONAL BANK TIME VALUE OF MONEY ANALYSIS You have applied for a job with a local bank. As part of its
Please answer G
IRST NATIONAL BANK TIME VALUE OF MONEY ANALYSIS You have applied for a job with a local bank. As part of its evaluation process you must take an examination on time value of money analysis covering the following questions . Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2;(2) an ordinary annuity of $100 per year for 3 years; and (3) an uneven cash flow stream of -$50, $100, $75, and $50 at the end of Years 0 through 3 b, 1 . What's the future value of $100 after 3 years if it earns 4%, annual compounding? 2 What's the present value of $100 to be received in 3 years if the interest rate is 4%, annual compounding? c. What annual interest rate would cause $100 to grow to $119.10 in 3 years? d. If a company's sales are growing at a rate of 10% annually, how long will it take sales to double? e. What's the difference between an ordinary annuity and an annuity due? What type of annuity is shown here? How would you change it to the other type of annuity? 100100 f. 1. What is the future value of a 3-year, 5.00 e Ninery annuity if the annual interest rate is 2. What is its present value? 3. What would the future and present values be if it was an annuity due? A 5-year $100 ordinary annuity has an annual interest rate of 4%. 1. What is its present value? 2. What would the present value be if it was a 10-year annuity? 3. What would the present value be if it was a 25-year annuity? 4. What would the present value be if this was a perpetuity? gStep by Step Solution
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