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
DEF Corporation had two issues of ordinary preferred stock with a $100 par value traded on the NYSE. One issue paid $5.56 annual
asambeis [7]

Answer:

5.93%

Explanation:

Cumulative Dividend for both (5.56+5.88)          $11.44

share price for both types of preferred stock (95.55+97.5) $193.05

Cost of preferred stocks $11.44/193.05=5.93%

6 0
3 years ago
According to the principles of supply and demand, why is it that as the price of a product increases, the amount supplied will a
Nezavi [6.7K]

According to the principles of supply and demand,  the price of a product increases, the amount supplied will also increase because there is positive relationship between price and quantity supplied.

<h3>Why when price increases supply also increases?</h3>

Economists States that there is a positive relationship between price and quantity supplied—that means a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied.

Principle of supply states that at a higher price, a producer is willing to produce more of a good.

Principle of demand states that at a higher price, a consumer is less willing to purchase a good.

Learn more about the principles of supply and demand here:-

brainly.com/question/1967319

#SPJ1

6 0
2 years ago
This table shows the CTSOs that four high school students are involved in: A 2-column table with 4 rows. Column 1 is labeled Stu
asambeis [7]

Answer: ELYSE. TSA. AFP. <—- the one that has that in the first Column

Explanation:

TSA is very similar to AFP

4 0
3 years ago
Read 2 more answers
Louis owns an import business. After traveling to France on numerous occasions, he developed a taste for fine French wines. A ra
leva [86]

Answer:

B) French wines will become more expensive in the United States.

Explanation:

When rate of dollar falls to that of euro, the same number of dollars will purchase fewer French goods, so French goods become more expensive to American consumers. If one travels to Europe (including France), one will exchange one dollar for less than one euro

4 0
3 years ago
Which process best describes how you might prepare to apply for a job?
Tatiana [17]













C You always want to prepare

7 0
3 years ago
Read 2 more answers
Other questions:
  • After the civil war, what became the major form of business organization because of its ability to raise money through the sale
    15·1 answer
  • Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions frequently. However, none of the pote
    14·1 answer
  • Which type of light is primarily used as a light source in stores?
    12·2 answers
  • Planters Bank pays 5 percent simple interest on its savings account balances, whereas Centura Bank pays 5 percent compounded ann
    8·1 answer
  • Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realizatio
    11·1 answer
  • A project has sales of $511,800, costs of $322,400, depreciation of $22,620, interest expense of $3,062, and a tax rate of 34 pe
    8·1 answer
  • BEFORE GETTING OUT OF YOUR CAR, AFTER PARKING AT A TWO-WAY STREET CURB, YOU SHOULD:
    10·2 answers
  • I WILL MARK IT AS BRAINLIEST ANSWER!!!!!
    10·1 answer
  • Many investment advisors argue that after stocks have declined in value for 2 consecutive years, people should invest heavily be
    12·1 answer
  • If the world price for a good exceeds the before-trade domestic price for a good, then that country must have.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!