Find how much would need to deposit today

Assignment Help Financial Accounting

Reference no: EM132659149

Question 1: Suppose you are looking at the following possible cash flows: • Year 1 CF = $100;
Years 2 and 3 CFs = $200;

Years 4 and 5 CFs = $300.

The required discount rate is 7%.

What is the value of the cash flows at year 5?
What is the value of the cash flows today?
What is the value of the cash flows at year 3?

Question 2: You know the payment amount for a loan, and you want to know how much was borrowed. Do you compute a present value or a future value?

You want to receive 5,000 per month in retirement.
If you can earn 0.75% per month and you expect to need the income for 25 years, how much do you need to have in your account at retirement?

Question 3: You want to receive $5,000 per month for the next 5 years.

How much would you need to deposit today if you can earn 0.75% per month?
What monthly rate would you need to earn if you only have $200,000 to deposit?
Suppose you have $200,000 to deposit and can earn 0.75% per month.
How many months could you receive the $5,000 payment?
How much could you receive every month for 5 years?

Reference no: EM132659149

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