PROFESSOR RUDY RAMDAYAL 58 words 20. Calealating Future Values (LOD) You are scheduled to receive $15,000 in two years. When you receive it, you will invest it for six more years at 7.15 per year How much will you have in eight years? 7. Calculating the Number of Periods (L03) At 6.5% interest, how long does it take to double your money? To quadruple it? 18. Calenlating Present Values (LO2) Suppose you are still committed to owning a $190,000 BMW (see @ Question 9). If you believe your mutual fund can achieve a 12% annual rate of return and you want to buy the car in nine years on the day you turn 30, how much must you invest today? 4. Calculating Interest Rates (103) Solve for the unknown interest rate in each of the following Present Value Years Interest Rate $240 360 19 19.000 35.261 10. Calculating Present Values (LO2) Normandin Inc. has an unfunded Page 1 pension liability of $575 million that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this Hability back to the present. If the relevant discount rate is 6.8%, what is present value of this liability 16. Calculating Rates of Return (L03) On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self administered RRSP at Scotia McLeod, an investment dealer. Each coupon represented a promise to pay $100 at the maturity date on January 13, 2022, but the investor would receive nothing until then. The value of the coupon showed as $76.04 on the investor's screen. This means that the investor was giving up $76.04 on February 2, 2016, in exchange for $100 to be received just less than six years Infer 4. Based upon the $76,04 price, what rate was the yield on the Province of Ontario bond? 6. Suppose that on February 2, 2017, the security's price was $81.00. If an investor had pitchased it for 576,04 a year earlier and sold it on this day, what antal rate of rtu would sheuve earned! If an investoc lind purchased the security at market on February 2, 2017 and held it until nature, what annual rate of return would she luve ethel