1. ## MT 217 Week 5 Lab Assignment Help | Purdue University Global

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25 Jul 2019

MT 217 Week 5 Lab Assignment Help | Purdue University Global

Unit 5 Lab Assignment

For the following mixed stream of cash flows, determine the future value at the end of the final year if deposits are made at the beginning of each year into an account paying annual interest of

88%,

assuming no withdrawals are made during the period.

Year Cash Flow Stream

1 11 comma 00011,000

2 9 comma 5009,500

3 6 comma 3006,300

(2)

Find the present value of the following mixed stream of cash flows (as of Year 0) using a discount rate of

99%.

Assume the cash flows are received at the end of each year.

Year Cash Flow Stream

1 9 comma 0009,000

2 6 comma 0006,000

3 1 comma 0001,000

(3)

Today you invested \$35 comma 40035,400 in an investment that pays 1010% and will mature in 55 years. Once the investment matures, you will reinvest your funds for another 1010 years in another investment that pays 66%. What will be the value of your investment after 1515 years?

(Choose the best response.)

4.

If the present value of a perpetual income stream is increasing, the discount rate must be:

5.

\$1,200 is deposited today into an account paying 6% interest compounded semiannually. How much interest will have been earned after 25 years?

6.

\$1,200 is received at the beginning of year 1, \$2,200 is received at the beginning of year 2, and \$3,300 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year 3 is:

7.

\$100 is received at the beginning of year 1, \$200 is received at the beginning of year 3. If these cash flows are deposited at 12 percent, their combined future value at the end of year three is: (Round to the nearest whole dollar)

8.

If a US Saving bond can be purchased for \$29.50 and has a maturity value at the end of 25 years of \$100, what is the annual rate of return on the bond?

9.

Shylock Bank offers a savings account with a nominal rate of 9% and quarterly compounding. What is the effective rate of the account?

10.

The future value of a dollar _________ as the interest rate increases and______ the farther in the future an initial deposit is to be received.

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