MT/217 MT217 MT 217 Unit 5 Lab assignment

MT 217 Unit 5 Lab assignment 

Question 1

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 12 %, assuming no withdrawals are made during the period.  

Find the present value of the following mixed stream of cash flows using a discount rate of 13%. Assume the cash flows are received at the end of each year.

Today you invested  $18 comma 700 in an investment that pays 3 %  and will mature in 4 years. Once the investment​ matures, you will reinvest your funds for another 9 years in another investment that pays 7%. What will be the value of your investment after 13years?  

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

Question 5

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

Question 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:

Question 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)

Question 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?

Question 9

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

Question 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.