Calculate the future value of the two payments

Assignment Help Accounting Basics

Reference no: EM131880761

Question: Calculate the EUAB over a 6 year period of two payments - one of $20,000 in year 2 and another of $10,000 in year 4. The Equivalent Uniform Annual Benefit is the amount of evenly distributed yearly payments that would generate the same present or future value. Use i = 6% and show calculations.

- Draw the Cash Flow Diagram:

- Calculate the Future value F of the two payments in year 6.

- Calculate the value of 6 equal annual payments that will equal F (A given F). This is the EUAB.

- Calculate the Present value P of the two payments in year 0.

- Calculate the value of 6 equal annual payments that will equal F (A given F). Confirm this is the same EUAB.

Reference no: EM131880761

Questions Cloud

Optimal average cash balance based on the Miller-Orr model : What is your optimal average cash balance based on the Miller-Orr model?

Identify architecture that will be use in distributed system : identify the architecture that will be used in your distributed system project and you will modify your consultant's analysis report to address any new issues.

What is the present value of the bond : In 2012, Hospital Systems Inc. issued $750,000,000 worth of Series A Bonds. Assume that these 25-year bonds have a par value of $1,000 and a coupon rate.

What is the z value for a box : What is the z value for a box with 19.82 ounces of cereal? Answer to three decimal places if needed.

Calculate the future value of the two payments : Calculate the EUAB over a 6 year period of two payments - one of $20,000 in year 2 and another of $10,000 in year 4. The Equivalent Uniform Annual Benefit.

Find the price for a call option with the inputs : Use the Black-Scholes Model to find the price for a call option with the following inputs:

Describe the fundamental components of a distributed system : Describe the fundamental components of a distributed system. Compare and contrast advantages and disadvantages of at least 2 distributed system architectures.

Loan amount on mortgages for a particular zip code : Suppose that the loan amount on mortgages for a particular zip code is normally distributed with a mean of 154,449, measured in dollars

What is the probability that a loan will have : What is the probability that a loan will have a z-score of less than -1.5? Answer to at least four decimal places.

User Account

All Pages