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PV of an uneven cash flow stream An investment promises the following cash flow stream: $1,000 at Time 0; $2,000 at the end of Year
PV of an uneven cash flow stream
An investment promises the following cash flow stream: $1,000 at Time 0; $2,000 at the end of Year
1 (or at T=1); $3,000 at the end of Year 2; and $5,000 at the end of Year 3. At a discount rate of 5%,
what is the present value of the cash flow stream?
FV of a Lump sum, semiannual
What's the future value of $2,000 after 3 years if the appropriate interest rate is 8%, compounded
semiannually?
PV of a Lump sum, semiannually
What's the present value of $2,000 discounted back 3 years if the appropriate interest rate is 8%,
compounded semiannually?
FV of an uneven cash flow stream
At a rate of 8%, what is the future value of the following cash flow stream? $0 at Time 0; $100 at the
end of Year 1; $300 at the end of Year 2; $O at the end of Year 3; and $500 at the end of Year 4?
FV of a Lump sum, monthly
What's the future value of $2,000 after 3 years if the appropriate interest rate is 8%, compounded
monthly?
PV of a Lump sum, monthly
What's the present value of $2,000 discounted back 3 years if the appropriate interest rate is 8%,
compounded monthly?
Loan Amortization: Payment
Suppose you borrowed $25,000 at a rate of 8% and must repay it in 4 equal installments at the end of
each of the next 4 years. How large would your payments be?
Loan Amortization: Interest
Suppose you borrowed $25,000 at a rate of 8% and must repay it in 4 equal installments at the end of
each of the next 4 years. How much interest would you have to pay in the first year?
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