Exam 4: Time Value of Money 1: Analyzing Single Cash Flows

A firm's net income last year was $1.5 million. Its net income grew 5 percent during the last "5" years. If that growth rate continues, how long will it take for the firm's net income to double?

What annual rate of return is implied on a $5,000 loan taken next year when $7,700 must be repaid in year 8?

When computing the rate of return from selling an investment, the number of years between the present and future cash flows is an important factor in determining

Approximately how many years does it take to double a $600 investment when interest rates are 6 percent per year?

What is the value in year 10 of a $1,000 cash flow made in year 5 if interest rates are 9 percent in years 6 and 7, and increase to 13 percent in the remaining years?

What is the value in year 3 of a $10,000 cash flow made in year 20 if interest rates are 5 percent?

Determine the interest rate earned on a $500 deposit when $650 is paid back in one year.

Approximately what rate is needed to double an investment over five years?

You have $50,000 in your account. Assuming no additional deposits are made and your account earns 8 percent per year, how long will it take for the account to have a balance of $500,000?