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  • Activities 5

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    romankovalev597
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    The document describes 4 activities involving making annual deposits into a bank account or receiving annual cash amounts from an investment over multiple years. For each activity: the initial deposit or cash amount is €500, the interest rate is 8%, and deposits or cash amounts increase by 3% each year after an initial period. The activities ask to calculate the deposit amount after 10 years, the accumulated amount after 10 years, the present value of deposits, and the present value of all cash amounts received, respectively.

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    The document describes 4 activities involving making annual deposits into a bank account or receiving annual cash amounts from an investment over multiple years. For each activity: the initial deposit or cash amount is €500, the interest rate is 8%, and deposits or cash amounts increase by 3% each year after an initial period. The activities ask to calculate the deposit amount after 10 years, the accumulated amount after 10 years, the present value of deposits, and the present value of all cash amounts received, respectively.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    0 views1 page

    Activities 5

    Uploaded by

    romankovalev597
    The document describes 4 activities involving making annual deposits into a bank account or receiving annual cash amounts from an investment over multiple years. For each activity: the initial deposit or cash amount is €500, the interest rate is 8%, and deposits or cash amounts increase by 3% each year after an initial period. The activities ask to calculate the deposit amount after 10 years, the accumulated amount after 10 years, the present value of deposits, and the present value of all cash amounts received, respectively.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    ACTIVITIES

    1. You have decided to deposit an amount of cash to a bank at the end of each year for the next 10
    years. You have also decided that these deposits will increase at a constant growth rate of 3%.
    The first deposit (i.e., PMT1) is for €500.

    The interest rate in the market is 8%.

    Find the amount of cash that you will deposit at the end of year 10 (i.e., PMT10).

    2. You have decided to deposit an amount of cash to a bank at the end of each year for 10 years.
    You have also decided that these deposits will increase at a constant growth rate of 3%. The first
    deposit (i.e., PMT1) is for €500.
    The interest rate in the market is 8%.
    Find the amount of cash that will accumulate in your account at the end of the 10 th year.

    3. You have decided to deposit an amount of cash to a bank at the end of each year for 10 years.
    You have also decided that these deposits will remain constant for the first 5 years and then
    increase at a constant growth rate of 3%. The first deposit (i.e., PMT) is for €500.
    The interest rate in the market is 8%.
    Find the present value of all the deposits.

    4. You will receive an amount of cash from an investment at the end of each year for ever.
    However, for the first 5 years the cash you will receive will be constant and then increase at a
    constant growth rate of 3%. The first cash amount to be received (i.e., PMT) is for €500.
    The interest rate in the market is 8%.
    Find the present value of all the cash amounts that you will receive.

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