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Q1. Manolya deposits $20.000 in the bank today. Starting three years from now, she makes equal withdrawals of $1.500 for five years then withdraws the
Q1. Manolya deposits $20.000 in the bank today. Starting three years from now, she makes equal withdrawals of $1.500 for five years then withdraws the remaining amount ten years from now. How much will she be able to withdraw ten years from now assuming the bank pays 6%compounded annually. a.) (15 points) Draw the cash flow diagram for the bank and calculate. b.) (15 points) Suppose Manolya repays the $20,000 loan in four equal payments at 7% starting at the end of the fifth year. What are the annual payments that she needs to repay? Draw the cashflow diagram for Manolya and calculate. Q2. (15 points) An equipment costs $4000 in year 2010 when the equipment index value was 125. If the index value is now 325, estimate the cost of an equipment four times as large. The cost-capacity equation exponent is 0.70. Q3. (25 points) What's the equivalent worth of the following cash flow diagram in year 0? Assume the interest rate is 12% in years 0-3, 5% in years 3-10 and 15% in years 10-15. If applicable, use gradient Q4. (15 points) How much should be deposited each year for 12 years if you wish to withdraw $309 each year for five years, beginning at the end of the 15th year? Let i=8% per year. Q5. (15 points) You deposit $1000 now and you want the account to have a value as close to $8870 as possible in year 20. Assume the acconut earns interest at 10% per year. Find the year in which you must make another deposit of $1000, Q1. Manolya deposits $20.000 in the bank today. Starting three years from now, she makes equal withdrawals of $1.500 for five years then withdraws the remaining amount ten years from now. How much will she be able to withdraw ten years from now assuming the bank pays 6%compounded annually. a.) (15 points) Draw the cash flow diagram for the bank and calculate. b.) (15 points) Suppose Manolya repays the $20,000 loan in four equal payments at 7% starting at the end of the fifth year. What are the annual payments that she needs to repay? Draw the cashflow diagram for Manolya and calculate. Q2. (15 points) An equipment costs $4000 in year 2010 when the equipment index value was 125. If the index value is now 325, estimate the cost of an equipment four times as large. The cost-capacity equation exponent is 0.70. Q3. (25 points) What's the equivalent worth of the following cash flow diagram in year 0? Assume the interest rate is 12% in years 0-3, 5% in years 3-10 and 15% in years 10-15. If applicable, use gradient Q4. (15 points) How much should be deposited each year for 12 years if you wish to withdraw $309 each year for five years, beginning at the end of the 15th year? Let i=8% per year. Q5. (15 points) You deposit $1000 now and you want the account to have a value as close to $8870 as possible in year 20. Assume the acconut earns interest at 10% per year. Find the year in which you must make another deposit of $1000
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