1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
TEA [102]
2 years ago
15

Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, y

ou have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions. Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4. What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest
Business
1 answer:
kotegsom [21]2 years ago
8 0

Answer:

(1) See the attached picture for the time lines.

(2) The future value of $1000 = $1,276.28

Explanation:

(1) Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4.

Note: See the attached picture for the time lines for (a), (b), and (c).

(2) What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest.

This can be calculated using the future value formula as follows:

The future value of $1000 = $1000 * (100% + Annual interest rate)^Number of years = $1000 * (100% + 5%)^5 = $1000 * 105%^5 = $1,276.28

You might be interested in
All of the following are examples of a SMART goal EXCEPT:
Alexandra [31]
D ndkkdkdhshdjsksjsjdjs
4 0
3 years ago
Oberon buys a Pro Club Health & Fitness, Inc., franchise, which the franchisor later terminates. In determining whether the
Lynna [10]

Answer:

balance the rights of both parties

Explanation:

Based on the information provided within the question it can be said that in a situation like the one being described a court will generally balance the rights of both parties. This is done in order to make sure that both parties are being treated fairly and investigate both sides of the case before making a decision in regards to who is in the right and who is in the wrong.

6 0
3 years ago
Checking and rechecking work for mistakes is an example of
Keith_Richards [23]
The Answer is A Paying attention to detail I just took the Apex test
7 0
3 years ago
Read 2 more answers
If you like working with others and persuading them to see your point of view you have a ? personality
Harrizon [31]

Answer:

Persuasive Personality

Explanation:

6 0
3 years ago
What is an example of a noncredible online source
denpristay [2]
“.org” and “.edu” are credible, where as “.com” is not very credible. A VERY non credible source is Wikipedia
8 0
3 years ago
Read 2 more answers
Other questions:
  • Renata has a home loan for $150,000 at 7.5% interest for 30 years and her payment is $987.00 per month (including principal and
    6·1 answer
  • A property is being appraised by the cost approach. The appraiser estimates that the land is worth $17,000 and the replacement c
    14·1 answer
  • Bundling is expected to provide greater profits when the two bundled goods are: i. substitutes. ii. goods that have high fixed c
    7·1 answer
  • An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 I
    8·1 answer
  • A 12-year capital lease specifies equal minimum annual lease payments. Part of this payment represents interest and part represe
    14·1 answer
  • Core Competencies:
    14·1 answer
  • What is a potential disadvantage of direct selling? A. Consumers must go out of their way. B. Some customers view direct selling
    12·1 answer
  • True or false:
    14·2 answers
  • Calculating Residual Income East Mullett Manufacturing earned operating income last year as shown in the following income statem
    13·1 answer
  • Your client purchases land that has been severely eroded. He plans to fill the holes caused by the erosion with waste material.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!