Interest TVM question

[puneet_]

Hi experts,

I read a question somewhere and i don't how to solve.

There is product that is inbound equal annual cashflows for first five years 100 and outbound of equal cashflows flows of 150 for next five years.
what should be annual compounded interest % to breakeven?
what should be quarterly compounded interest % to breakeven?
what should be monthly compounded interest % to breakeven?

I tried to do with pmt on calculator but it's positive and negative cashflows so i am confused on how to solve it.

it has another version of insurance product like below:

There is product that is inbound equal annual cashflows for first five years 100 and outbound of equal cashflows flows of 50 for next five years.

what could be big sum for outbound cashflow at end of 10 year period to breakeven with annual compounded interest rate of 8%?
what could be big sum for outbound cashflow at end of 10 year period to breakeven with quarterly compounded interest rate of 8%?

 

[ShaktiRathore]

Hi,
i hope u are using Texas BA II plus,
GO to Cash flow:CF then enter first Cash flow CF0=0,CF1=100,CF2=100,CF3=100,CF4=100,CF5=100,CF6=-150,CF7=-150,CF8=-150,CF9=-150,CF10=-150
now click on IRR and CPT the answer shall come to be 8.447% which is annual compounded interest % to breakeven.
thanks