# Ans Doc341Y

If you receive \$211 at the end of each year for the first three years and \$833 at the end of each year for the next three years. What is the present value? Assume interest rate is 4%.
Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer.
Just enter the number up to 2 decimal points. Do not enter \$ in the answer box.
Question 2
Barrett Pharmaceuticals is considering a drug project that costs \$198,673 today and is expected to generate end-of-year annual cash flows of \$10,454, 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.
Question 3
What should you be willing to pay in order to receive \$947 annually forever, if you require 6% per year on the investment?
Just enter the number up to 2 decimal points. Do not enter \$ in the answer box.

Question 4
What is the effective rate of 19% compounded monthly?
Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.
Question 5
What is the future value of quarterly payments of \$517 for 9 years at 6 percent?
Question 6
What is the future value of \$4,482 invested for 14 years at 20% if interest is compounded quarterly? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.
Question 7
How many years it will take to grow your money from \$4,916 to \$6,290 if you can earn an interest of 19% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

Question 8
Today, you are purchasing a \$2,507 7-year car loan at 5 percent. You will pay annually at the end of each year. What is the amount of each payment?
Question 9
How many years it will take you to double your money if you can earn 9% each year, given that compounding is quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box.

Question 10
Assume 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.
Do not enter the symbol \$ in your answer. Simply enter the answer rounded off to two decimal points.
Question 11
If the effective rate is 12%. What is the nominal rate if compounding is daily. Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.
Question 12
What is the future value of \$830 invested for 20 years at 18% if interest is compounded semi-annually? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.
Question 13
How much do you need to invest today in order to have \$5,268 at the end of 16 years if you are sure to earn an interest at the rate of 5%? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.
Question 14
Gertrude Carter and Co. has an outstanding loan that calls for equal 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?
Do not enter the symbol \$ in your answer. Simply enter the answer rounded off to two decimal points.

Question 15
What is the future value of annual payments of \$4,159 for 7 years at 6 percent?

Question 16
How many years it will take you to quadruple (means 4 times) your money if you can earn 11.63% each year? Note: Do not write “years” in your answer. Simply write the number in the answer box.
Question 17
What is the future value of \$186 for 14 years at 6 percent if interest is compounded semi-annually? Note: Do not enter “\$” in your answer. Simply write down the number that you get as your answer.
Question 18
023A:If you can double your money in 15 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.

Question 19
027:Say, you deposit \$4,561 in a bank for 17 years. What is the amount you will have in the bank at the end of 17 years if interest of 4 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.
Question 20
The ABC Company is considering a new project which will require an initial cash investment of \$5,305. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are \$2,535, \$5,878, \$3,302, and \$2,824, respectively. If the appropriate discount rate is 5%, compute the NPV of the project.
Enter your answer rounded off to two decimal points. Do not enter \$ in the answer box.
Question 21
If you put \$700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?

a. \$828

b. \$827

c. \$1,176

d. \$833

e. \$770

Question 22
What is the future value of \$2,029 invested for 6 years at 12% if interest is compounded semi-annually (twice a year)? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.
Question 23
Consider a 10-year loan with monthly payments at 10%. If the loan amount is \$250,000, compute the Interest paid during the 6th year.
Enter your answer rounded off to two decimal points. Do not enter \$ in the answer box.

Question 24
The 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 25
Assume interest rate of 10%. A company receives cash flows of \$534 at the end of year 5, \$213 at the end of year 7, and \$912 at the end of year 10. Compute the future value of this cash flow stream.
Do not enter the symbol \$ in your answer. Simply enter the answer rounded off to two decimal points.
Question 26
If you can triple your money in 8 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box..
Question 27
How many years it will take to grow your money from \$3,284 to \$7,572 if you can earn an interest of 5% compounded monthly? Note: Do not write “years” in your answer. Simply write the number in the answer box.
Question 28
If you can double your money in 8 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. Simply write the number in percentages in the answer box.
Question 29
How much do you need to invest today in order to have \$5,344 at the end of 19 years if you are sure to earn an interest at the rate of 10%, if interest is compounded monthly? Note: Do not put \$ sign in your answer. Simply write the number in the answer box.
Question 30
The ABC Company is considering a new project which will require an initial cash investment of \$10,077. The projected cash flows for years 1 through 4 are \$6,379, \$8,117, \$9,346, and \$4,508, respectively. If the appropriate discount rate is 10%, compute the NPV of the project.
Enter your answer rounded off to two decimal points. Do not enter \$ in the answer box.

Question 31
Assume interest rate of 3%. Suppose that you receive \$107,219 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.
Do not enter the symbol \$ in your answer. Simply enter the answer rounded off to two decimal points.

Question 32
How many months it will take to grow your money from \$4,694 to \$6,134 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.