Time Value Problems

# Time Value Problems - Time Value Problems Part 1 Can You...

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Part 1: Can You Use Your Calculator? 1. What amount received at the end of 20 years is equivalent to \$100 today, given an opportunity cost of 14%? 2. What amount received at the end of 15 years is equivalent to \$100 received at the end of each year for 15 years, given an opportunity cost of 12%? 3. What present amount is equivalent to \$100 received at the end of 5 years, given an opportunity cost of 16%? 4. What present amount is equivalent to \$100 received at the end of each year for 8 years, given an opportunity cost of 20%? 5. Find the future value in two years of \$100 that is deposited in an account which pays 12% compounded monthly. 6. Find the present value of \$100 to be received at the end of two years if the discount rate is 12% compounded monthly. 7. Find the present value of a perpetuity of \$1500 per year given a 20% opportunity cost. 8. If the present value of a perpetuity is \$6000 and the discount rate is 8%, what is the amount of the annuity payments? 9. At an 8% rate of interest, how long does it take for a sum of money to double? 10. What is the rate of return on an investment if you lend \$1000 and two years later are repaid \$1254.70? 11. What is the rate of interest on a \$10,000 loan that is to be repaid in 10 equal annual installments of \$1,917 each? 12. What is the amount of the equal annual installments for a 10 year, \$10,000 loan with a 20% rate of interest? 13. You know you will need \$25,000 at the end of 5 years. How much would you have to have deposit annually, starting at the end of the first year, into an account earning 10% to accumulate the needed amount? 14. What if everything in Problem 13 is identical except that you begin your deposits

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Time Value Problems - Time Value Problems Part 1 Can You...

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