Sample Essay on:
Cash Flows and Interest Rate Calculations

Here is the synopsis of our sample research paper on Cash Flows and Interest Rate Calculations. Have the paper e-mailed to you 24/7/365.

Essay / Research Paper Abstract

This 10 page shows the student how to answer a range of questions that include calculating interest rates when future values are given, future fund values when interest rates and contributions are given, the differences between compound and simple interest rates, the difference between APR and EAR, and finally different earnings per share for given company capital structures.

Page Count:

10 pages (~225 words per page)

File: TS14_TEcsin01.rtf

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Unformatted sample text from the term paper:

to the question. Question 1 (fax page 1, 1st question) When looking at the figures given we need to work backwards to calculate the present values when we have an interest rate given. We are given the figure for year 4 we will assume this is a year end figure. Therefore, we have also included a figure for the beginning of year 1. To calculate this we need to divide each year by 104 and multiply by 100 this give us the following. a. Year 4 15,451 Year 3 14,857 Year 2 14,285 Year 1 13,736 Start 13,208 If the figures were the beginning of the year then the start amount would be the year 1 figure. b. Year 9 51,557 Year 8 46,033 Year 7 41,101 Year 6 36,697 Year 5 32,765 Year 4 29,255 Year 3 26,120 Year 2 23,322 Year 1 20,823 start 18,592 If the figures were the beginning of the year then the start amount would be the year 1 figure. c. With this we can see a trend if we have a future value of 886,073 at the end of 14 years time at 22% would mean an initial investment of 54,756 at the beginning of year 1. d. 550,124 at the end of 18 years at 20% per year would mean that the initial investment would be 20,663. If the years are all assumed to be beginning of years the student can adjust the figures by a year using the same formula. Question 2 (Fax ...

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