1for The Year Series Of Values Shown On The Following Time Diagram An ✓ Solved

1.For the year series of values shown on the following time diagram and a 12% annual interest rate, please find: ! Present value at year .For the year series of values shown on the following time diagram and a 11% annual interest rate, please find: ! ! Future value at year .For the year series of values shown on the following time diagram and a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 4.In the year timeline series shown below, using a 9% annual interest rate, please find: ! ! Present value at year .In the year timeline series shown below, using a 12% annual interest rate, please find: ! !

Future value at year .In the year timeline series shown below, using a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 7.An annual nominal interest rate of 10% is compounded quarterly. What is the interest rate per quarter? 8.An annual nominal interest rate of 8% is compounded quarterly. What is the effective interest per year?

9.If you borrow ,000 at an annual interest rate of 10% compounded monthly, calculate the equal monthly payments that will pay off this loan over five years 10.If you borrow ,000 at an annual interest rate of 12% compounded monthly, calculate the equal yearly payments that will pay off this loan over five years 11.What future amount of money will be accumulated 15 years from now by investing ,000 now plus

1for The Year Series Of Values Shown On The Following Time Diagram An

1.For the year series of values shown on the following time diagram and a 12% annual interest rate, please find: ! Present value at year .For the year series of values shown on the following time diagram and a 11% annual interest rate, please find: ! ! Future value at year .For the year series of values shown on the following time diagram and a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 4.In the year timeline series shown below, using a 9% annual interest rate, please find: ! ! Present value at year .In the year timeline series shown below, using a 12% annual interest rate, please find: ! !

Future value at year .In the year timeline series shown below, using a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 7.An annual nominal interest rate of 10% is compounded quarterly. What is the interest rate per quarter? 8.An annual nominal interest rate of 8% is compounded quarterly. What is the effective interest per year?

9.If you borrow $60,000 at an annual interest rate of 10% compounded monthly, calculate the equal monthly payments that will pay off this loan over five years 10.If you borrow $60,000 at an annual interest rate of 12% compounded monthly, calculate the equal yearly payments that will pay off this loan over five years 11.What future amount of money will be accumulated 15 years from now by investing $5,000 now plus $2,000 in year five at 10% interest compounded quarterly? 12.What are the monthly payments that will pay off a $1,000,000 oil rig loan with 24 equal end-of-payments? If 10% annual nominal interest rate is compounded monthly. 13.A $2,000 bond matures in 20 years and pays semi-annually interest of $85.

What Nominal rate of return (or annual bond ROR) compounded semi-annually does the bond yield if you pay $1,800 for it and hold it until maturity? Assume that the analysis is made on the first day of a new semi-annual period. 14.A gold mining project has an initial cost of $130,000 and an estimated salvage value after 15 years of $80,000. Estimated average annual revenues are $25,000. Estimated average annual costs are $15,000.

Assuming that annual revenue and cost are uniform, what is the prospective rate of return? 15.A new project requires development costs of $60 million at the time zero and $100 million at the end of year 2 with incomes of $40 million per year at the end of years 1, 2 and 3 and incomes of $85 million per year at the end of years through years 4 through 10 with zero salvage value predicted at the end of year 10. What is the rate of return for this project? 16.Calculate the present worth cost of service for the following cash flows. Use annual compounding periods and the appropriate effective annual interest rate that is equivalent to 10% compounded monthly. !

,000 in year five at 10% interest compounded quarterly? 12.What are the monthly payments that will pay off a ,000,000 oil rig loan with 24 equal end-of-payments? If 10% annual nominal interest rate is compounded monthly. 13.A

1for The Year Series Of Values Shown On The Following Time Diagram An

1.For the year series of values shown on the following time diagram and a 12% annual interest rate, please find: ! Present value at year .For the year series of values shown on the following time diagram and a 11% annual interest rate, please find: ! ! Future value at year .For the year series of values shown on the following time diagram and a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 4.In the year timeline series shown below, using a 9% annual interest rate, please find: ! ! Present value at year .In the year timeline series shown below, using a 12% annual interest rate, please find: ! !

Future value at year .In the year timeline series shown below, using a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 7.An annual nominal interest rate of 10% is compounded quarterly. What is the interest rate per quarter? 8.An annual nominal interest rate of 8% is compounded quarterly. What is the effective interest per year?

9.If you borrow $60,000 at an annual interest rate of 10% compounded monthly, calculate the equal monthly payments that will pay off this loan over five years 10.If you borrow $60,000 at an annual interest rate of 12% compounded monthly, calculate the equal yearly payments that will pay off this loan over five years 11.What future amount of money will be accumulated 15 years from now by investing $5,000 now plus $2,000 in year five at 10% interest compounded quarterly? 12.What are the monthly payments that will pay off a $1,000,000 oil rig loan with 24 equal end-of-payments? If 10% annual nominal interest rate is compounded monthly. 13.A $2,000 bond matures in 20 years and pays semi-annually interest of $85.

What Nominal rate of return (or annual bond ROR) compounded semi-annually does the bond yield if you pay $1,800 for it and hold it until maturity? Assume that the analysis is made on the first day of a new semi-annual period. 14.A gold mining project has an initial cost of $130,000 and an estimated salvage value after 15 years of $80,000. Estimated average annual revenues are $25,000. Estimated average annual costs are $15,000.

Assuming that annual revenue and cost are uniform, what is the prospective rate of return? 15.A new project requires development costs of $60 million at the time zero and $100 million at the end of year 2 with incomes of $40 million per year at the end of years 1, 2 and 3 and incomes of $85 million per year at the end of years through years 4 through 10 with zero salvage value predicted at the end of year 10. What is the rate of return for this project? 16.Calculate the present worth cost of service for the following cash flows. Use annual compounding periods and the appropriate effective annual interest rate that is equivalent to 10% compounded monthly. !

,000 bond matures in 20 years and pays semi-annually interest of .

What Nominal rate of return (or annual bond ROR) compounded semi-annually does the bond yield if you pay ,800 for it and hold it until maturity? Assume that the analysis is made on the first day of a new semi-annual period. 14.A gold mining project has an initial cost of 0,000 and an estimated salvage value after 15 years of ,000. Estimated average annual revenues are ,000. Estimated average annual costs are ,000.

Assuming that annual revenue and cost are uniform, what is the prospective rate of return? 15.A new project requires development costs of million at the time zero and 0 million at the end of year 2 with incomes of million per year at the end of years 1, 2 and 3 and incomes of million per year at the end of years through years 4 through 10 with zero salvage value predicted at the end of year 10. What is the rate of return for this project? 16.Calculate the present worth cost of service for the following cash flows. Use annual compounding periods and the appropriate effective annual interest rate that is equivalent to 10% compounded monthly. !

Paper for above instructions

The assignment provided encompasses several fundamental concepts of time value of money (TVM), which are crucial for financial analysis and decision-making. This solution organizes the questions into relevant sections: present value, future value, payments, investment returns, and rate of return for projects, adhering to finance principles.

1. Present Value Calculation


When calculating the Present Value (PV) of a series of future cash flows, the formula used is:
\[
PV = \frac{FV}{(1 + r)^n}
\]
where:
- FV = Future Value
- r = interest rate
- n = number of periods
1. Present Value at Year (12% annual interest rate)
Assuming future cash flows are received at a time (e.g., ,000 at Year 5), we would calculate the present value as follows:
For example:
\[
PV = \frac{5000}{(1 + 0.12)^5} \approx \frac{5000}{1.7623} \approx 2833.04
\]
This example indicates that if you expect to receive ,000 in 5 years with a 12% interest rate, the present value is approximately

1for The Year Series Of Values Shown On The Following Time Diagram An

1.For the year series of values shown on the following time diagram and a 12% annual interest rate, please find: ! Present value at year .For the year series of values shown on the following time diagram and a 11% annual interest rate, please find: ! ! Future value at year .For the year series of values shown on the following time diagram and a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 4.In the year timeline series shown below, using a 9% annual interest rate, please find: ! ! Present value at year .In the year timeline series shown below, using a 12% annual interest rate, please find: ! !

Future value at year .In the year timeline series shown below, using a 10% annual interest rate, please find: ! ! Annual equivalent value for the 10 years 7.An annual nominal interest rate of 10% is compounded quarterly. What is the interest rate per quarter? 8.An annual nominal interest rate of 8% is compounded quarterly. What is the effective interest per year?

9.If you borrow $60,000 at an annual interest rate of 10% compounded monthly, calculate the equal monthly payments that will pay off this loan over five years 10.If you borrow $60,000 at an annual interest rate of 12% compounded monthly, calculate the equal yearly payments that will pay off this loan over five years 11.What future amount of money will be accumulated 15 years from now by investing $5,000 now plus $2,000 in year five at 10% interest compounded quarterly? 12.What are the monthly payments that will pay off a $1,000,000 oil rig loan with 24 equal end-of-payments? If 10% annual nominal interest rate is compounded monthly. 13.A $2,000 bond matures in 20 years and pays semi-annually interest of $85.

What Nominal rate of return (or annual bond ROR) compounded semi-annually does the bond yield if you pay $1,800 for it and hold it until maturity? Assume that the analysis is made on the first day of a new semi-annual period. 14.A gold mining project has an initial cost of $130,000 and an estimated salvage value after 15 years of $80,000. Estimated average annual revenues are $25,000. Estimated average annual costs are $15,000.

Assuming that annual revenue and cost are uniform, what is the prospective rate of return? 15.A new project requires development costs of $60 million at the time zero and $100 million at the end of year 2 with incomes of $40 million per year at the end of years 1, 2 and 3 and incomes of $85 million per year at the end of years through years 4 through 10 with zero salvage value predicted at the end of year 10. What is the rate of return for this project? 16.Calculate the present worth cost of service for the following cash flows. Use annual compounding periods and the appropriate effective annual interest rate that is equivalent to 10% compounded monthly. !

,833.04.

2. Future Value Calculation


When calculating Future Value (FV), the formula used is:
\[
FV = PV \times (1 + r)^n
\]
Future Value at Year (11% annual interest rate)
For