1. Peter would like to purchase a new house of 1,000,000 baht. He plans to take the housing loan from the bank for 10 years whereas the bank requires Peter to make a down payment of 20%. The bank will charge interest rate at 12% but allows Peter to choose between making monthly repayments or annual repayments. How much is the annual repayments?
2. Robert has deposited 100,000 baht with XYZ Bank with the annual interest rate of 6% per year. How many years does Robert need to wait until his deposit will become double or around 200,000 baht
3. Compute the present value of 10-year annuity of 10,000 baht per year with the first payment starts in at the end of 5th year. The interest rate is 5%
4. Robert lends money to his friend $600,000 who promises to repay $1,326,420 at the end of year 7. What is the interest rate Martha is charging her friend?
5. Sarah invests $10,000 at 12% interest compounded annually. How much will she have after 10 years?
6. XYZ Company promises an annual return of $25,900 for 10 years for an initial investment of $200,000. What is the yield on this investment?
7. About how many years would it take for your investment to grow from $1,000,000 to $2,000,000 if it can be invested at 9% compounded annually?
8. To accumulate money in a saving account to $2,000,000, how much should you deposit each month in your saving account for 5 years if the annual interest rate is 12% compounded monthly?
9. Compute the present value of 10-year annuity of 10,000 baht per year with the first payment starts at the end of 5th year. The interest rate is 5%.
10. Tony has invested in one real estate property with the amount of 10,000,000 baht. Ten years later, the value of this real estate property becomes 25,000,000 baht. How much is the annual rate of return for this investment?
21. What is the NPV of a $40,000 project that is expected to have an after-tax cash flow of $12,000 for the first four years, and $6,380 for the fifth year? Use a 10% discount rate.
22. What is the NPV of a $48,000 project that is expected to have an after-tax cash flow of $14,400 for the first four years, and $7,656 for the fifth year? Use a 10% discount rate.
28. Westworld, Inc. is considering an investment project. The project will require the investment of $15,000 and will generate cash flow of $5,000 per year for 5 years. The firm has a cost of capital of 12%. Compute profitability index of this project.
29. Westworld, Inc. is considering an investment project. The project will require the investment of $20,000 and will generate cash flow of $5,000 per year for 5 years. The firm has a cost of capital of 13%. Compute profitability index of this project.
30. Westworld, Inc. is considering an investment project. The project will require the investment of $14,000 and will generate cash flow of $5,500 per year for 5 years. The firm has a cost of capital of 14%. Compute profitability index of this project.