Finance 18 Questions Assignment

QUESTION 1Assume interest rate of 12%. A company receives cash flows of $596 at the end of year 5, $238 at the end of year 7, and $542 at the end of year 10. Compute the future value of this cash flow stream.QUESTION 2What is the future value of annual payments of $4,149 years at 5 percent?QUESTION 3Barrett Pharmaceuticals is considering a drug project that costs $192,279 today and is expected to generate end-of-year annual cash flows of $13,125, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.1 pointsQUESTION 4How much do you need to invest today in order to have $5,803 at the end of 9 years if you are sure to earn an interest at the rate of 7%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.QUESTION 5How much do you need to invest today in order to have $2,399 at the end of 20 years if you are sure to earn an interest at the rate of 12%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.QUESTION 6The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,581 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $156,868. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.QUESTION 71. 026:Say, you deposit $3,952 in a bank years. What is the amount you will have in the bank at the end of 16 years if interest of 4 % 9 years and interest of 6 % remaining years?QUESTION 8How many months it will take to grow your money from $4,983 to $7,359 if you can earn an interest of 12% compounded monthly? Note: Do not write “months” in your answer. Simply write the number in the answer box.QUESTION 9If you can double your money in 17 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer.QUESTION 10Assume interest rate of 6%. A company receives cash flows of $77,874 at the end of years 4, 5, 6, 7, and 8, and cash flows of $277,080 at the end of year 10. Compute the future value of this cash flow stream.QUESTION 11What is the future value of $1,670 invested years at 17% if interest is compounded semi-annually?QUESTION 12What is the future value of quarterly payments of $712 years at 7 percent?QUESTION 13What is the future value of $2,627 invested years at 6% if interest is compounded semi-annually (twice a year)?QUESTION 14Assume interest rate of 7%. Suppose that you receive $89,910 at the end of each year years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.QUESTION 15023A:If you can double your money in 16 years, what is the implied annual rate of interest, given that compounded semi-annually?QUESTION 16How many years it will take to grow your money from $3,967 to $6,090 if you can earn an interest of 13% compounded monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box.QUESTION 17Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year.QUESTION 18Gertrude Carter and Co. has an outstanding loan that calls annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest?