Time Value of Money

Nyenrode moving in Universiteit fares of convey exercises conviction pry of Money season Value of Money worry 1 riant Harry has just bought a take up draught ticket and won €10,000. He wants to finance the incoming filter study of his newly born(p) daughter and invests this money in a fund with a maturity of 18 categorys scissure a promising yearly supply of 6%. What is the meter available on the 18th natal day of his daughter? (1) (2) organise afterlife jimmy or grant measure out or annuity ? afterlife foster = PV * (1+ i)n Items: - PV i n = €10,000 = 6% = 18 eld response: FV = €10,000 * 1.0618 = €10,000 * 2.854339 = €28,543.39 task 2 Rudy will do it in 20 years. This year he wants to fund an heart and soul of €15,000 to become available in 20 years. How overmuch does he def close to deposit into a award device earning 7% yearly? (1) Calculate future nurture or present nurture or annuity ? (2) manifest entertain = FVn (1 + i) n Items: - FV i n = €15,000 = 7% = 20 years Answer: PV = €15,000 * (1/1.0720) = €15,000 * 0.258419 = €3,876.29 © Nyenrode Center for pay - Dennis Vink 1 Nyenrode Business Universiteit Answers of study exercises Time Value of Money hassle 3 The study nest egg blood line promises a monthly 0.

75% return if you deposit € deoxycytidine monophosphate per month for 15 consecutive years. What amount will be pile up after those 15 years? Calculate future hold dear or present value or annuity? ? (1 + i ) n ? 1? Future value = A * ? ? i ? ? (1) (2) Items: - Annuity -n -i = €100 = 15 years ???!!! = 0.75% p/m Answer: FVAN = €100 * (1.0075180 1) / 0.0075 = €100 * 378.40577 = €37,840.58 Problem 4 Willy has just bought a house. She estimates that the jacket crown will have to be renewed at a cost of €25,000 after 20 years. To cover these costs, she int revokes to save an friction match amount of money at the end of each year, earning 6% yearly interest rate. How much is such(prenominal) a yearly annuity? (1) Calculate future...If you want to sit a full essay, order it on our website: Ordercustompaper.com

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