maths

posted by riya

Calculate the total present value today (to 2 decimal places) of the following cash flows:

$300 due in 2 years from today
$1,000 due in 5 years from today
$200 due in 15 years from today
Use an interest rate of 12% per annum.

  1. MathMate

    i=0.12
    use
    P=F*(P/F,i,n)=F/((1+i)^n)

    P1=-300/(1.12^3)=213.53
    P2=-1000/(1.12^5)=567.43
    P3=-200/(1.12^15)=36.54
    (negative because money is due in the future)

    P=P1+P2+P3 [present value]

  2. MathMate

    P1=-300/(1.12^3)=-213.53
    P2=-1000/(1.12^5)=-567.43
    P3=-200/(1.12^15)=-36.54
    (negative because money is due in the future)

Respond to this Question

First Name

Your Answer

Similar Questions

  1. Financial Management

    Hi, would anyone be willing to help with this. Thanks :) 2. Find the following values: a) An intial $500 compounded for 10 years at 6 percent b) An intial $500 compounded for 10 years at 12 percent c) The present value of $500 due …
  2. Financial Management

    HI, could anyone help with this please. :) 2. Find the following values: a) An intial $500 compounded for 10 years at 6 percent b) An intial $500 compounded for 10 years at 12 percent c) The present value of $500 due in 10 years at …
  3. FIN200- FV, PV and Annuity Due CP

    I just want to know if anyone can help me in determining if I am on track with this assignment and if anyone can point out where I am wrong and how I need to fix it. I have already completed this assignment on my own and need someone …
  4. Finance

    You can deposit 10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 1o years …
  5. financial market

    Annuity Present Values What is the present value of an annuity of $2,000 per year, with the first cash flow received three years from today and the last one received 22 years from today?
  6. Finance

    What is the value of a building that is expected to generate fixed annual cash flows of 124,250 dollars every year for a certain amount of time if the first annual cash flow is expected in 3 years from today and the last annual cash …
  7. finance

    Q.1.Differentiate future value from present value and explain how compound interest differs from simple interest. Q.2. John expects to need $50,000 as a down payment on a house in six years. How much does she need to invest today in …
  8. raisethorpe

    a person has debt of R2000 due in 2 years and R4000 due in 5 years.The interest rate is 15% compounded quarterly.If R1000 is paid today and the balance in 3 years, what is the balance that must be paid to discharge the debt taking …
  9. Business Dynamics

    Calculate the single risk premium (to 2 decimal places) to be charged today on an insurance product that pays regular claims of $500 in 1,2,3,...,25 years from today. Use an interest rate of 4% per annum.
  10. math

    B owes $3000 due 2 years from today without interest and $2000 with interest at 4% compounded quarterly due in 6 years from today.if money worth is 5% compounded semiannually what single payment made 4 years from today will discharge …

More Similar Questions