Nidhi_Patel_Chapter 4 Homework

QUESTION 1 If you set aside $1000 a year to be deposited into your saving which pays 5.5%, a) how much have you accumulated after 20 years? O a. $42,472.0 Ob. $34,000.00 Oc. $34,925.8 Od. $35,925.6

Exercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4 Starr Company decides to establish a fund that it will use 3 years from now to replace an aging production facility. The company will make a $110,000 initial contribution to the fund and plans to make quarterly contributions of $51,000 beginning in three months. The fund earns 16%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar. What will be the value of the fund 3 years from now? × Answer is complete but not entirely correct. Table Values are Based on: n = i = 12 16% ☑ Present Table Factor Future Value Value Initial Investment Periodic Investments Future Value of Fund $ 110,000 1.7908 $ 196,988 × 51,000 6.8941 x 351,599 x $ 548,587

Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:

7 Present work in Excel   Consider the following:   Financed amount: $385,000   Cost of funds: 7.25% (interest rate)   30-year amortization   Calculate (round to nearest dollar):           Annual payment amount (this is monthly payment x 12 --- then rounded to nearest dollar)   Amount of 'Interest paid' during year 3 (rounded to nearest dollar)   Amount of 'Principal paid' during year 3 (rounded to nearest dollar)

Year Discounting factor 0 1.00 1 0.8928571428 2 0.7971938775 3 0.7117802478 4 0.6355180784     Base on the image and the table: How do i calculate the payback peridod (using years)?

What semiannual sinking fund payment would be required to yield $45,000 nine years from now? The annual interest rate is 6% compounded semiannually. Click the icon to view the table. The sinking fund payment is S (Round to the nearest cent as needed.)

Grove Media plans to acquire production equipment for $845,000 that will be depreciated for tax purposes as follows: year 1, $329,000; year 2, $189,000; and in each of years 3 through 5, $109,000 per year. A 10 percent discount rate is appropriate for this asset, and the company's tax rate is 20 percent. Use Exhibit A.8 and Exhibit A.9. Required: a. Compute the present value of the tax shield resulting from depreciation. b. Compute the present value of the tax shield from depreciation assuming straight-line depreciation ($169,000 per year). Complete this question by entering your answers in the tabs below. Required A Required B Compute the present value of the tax shield resulting from depreciation. Note: Round PV factor to 3 decimal places. Present value of the tax shield

Finance question thanks

st cent. ist Co llar table Present Value of a Dollar Table Period 1% 2% 5% 45 97087 96154 95238 99010 98522 98019 97561 94340 92993 89000 94260 92456 90703 98030 97066 96117 95181 97059 95632 34232 92860 83962 79383 96098 91514 8800 M6.384 88849 R5400) X2270 79209 86261 82193 78353 74726 73901 5 68058 6 94218 92385 90595 95147 92826 90573 88385 94205 91454 88797 86230 83748 79031 74622 70496 63017 7 93272 90101 87056 84127 81309 75992 71068 58349 85,349 82075 X3676 78941 92348 88771 91434 87459 20073 76642 90529 86167 82015 78120 74409 89632 84893 80426 76214 72242 64958 888745 XW639 78849 74356 70138 62460 87866 82401 60057 81185 57748 86135 79985 55526 48102 16 85282 78803 62317 53391 45811 39365 17 84438 77639 71416 37136 27027 18 76491 70016 35034 25005 82774 75361 68643 23171 81954 74247 67297 14964 60502 51337 43630 38739 49363 41552 57029 47464 39573 33051 55368 45639 37689 31180 21455 81143 73150 65978 595.39 53755 43883 35894 29416 19866 80340 72069 64684 SHONG 52189 34185…

Answer nunbers 2,3,4 COMPUTE FOR ITS ORDINARY ANNUITY Show the solution

1. In a future value of 1 table: a. b. C. a. b. Annual Rate C. 11% 8% 8% Annual Rate 11% 8% 8% Number of Years Invested Save for Later Number of Years Invested 25 16 2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to 0 decimal places, e.g 45.) 7 eTextbook and Media 11 8 16 Number of Rents Involved 25 32 Compounded 28 Annually Quarterly Semiannually Frequency of Rents Annually Semiannually (a) Rate of Interest Quarterly % (a) Rate of Interest % % % % (b) Number of Periods % (b) Number of Periods Attempts: 0 of 3 used Submit Answer

Find the sinking fund payment

plan A plan B plan C Down payment 15,777 28,458 16,632 Annual payments 27,556 10,207 25,948 Years 20 20 20 Discount rate 11% 11% 11% What is the present value of plan A?

K Find the amount of each payment into a sinking fund if $14,000 must be accumulated Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearest cent Click here to view part 1 of the Sinking Fund table. Click here to view part 2 of the Sinking Fund table. OA. $829.92 OB. $4,597 32 OC. $1,180.06 OD. $1,073.52

Provided information Cash flow Million Interest Cash flow Year rate Million 12% R-638 R-638 1 12% R160 R160 2 12% R200 R200 3 12% R200 R200 4 12% R200 R200

3.33 points 1 Exercise 5-2 (Algo) Future value; single amount (LO 5-2) The four people below have the following investments. Skipped Invested Amount Interest Rate Compounding Jerry Elaine $ 12,200 12% Quarterly 15,200 10 Semiannually eBook George Kramer 22,200 6 18,200 8 Annually Annually Print References Required: 1-a. Calculate the future value at the end of three years. (FV of $1. PV of $1. FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Who has the greatest investment accumulation? Who has the greatest investment accumulation?

aa.7

Questic Present Value of Annuity Not ye Annuity Years Interest Rate Compounding Due Marke $100.00 37 20.00% Weekly P Flac O a. $42,071,286.08 O b. $41,910,093.41 O c. $26,083.82 O d. $25,983.88 X N hp

Appendix D Present value of an annuity of $1, PVA Period -NM in D 1 2 3 4 5 6 7 8 9 12 13 15 16 18 19 20 25 30 40 50 PUINDING FAMIGOs 19 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 13.004 13.865 14.718 15.562 16.398 17.226 18.046 22.023 25.808 32.835 39.196 2% 0.980 1.942 2.884 3.808 4.713 5.601 6.472 7.325 8.162 8.983 9.787 10.575 11.348 12.106 12.849 13.578 14.292 14.992 15.678 16.351 19.523 22.396 27.355 31.424 3% 0.971 1.913 2.829 3.717 4.580 5.417 6.230 7.020 7.786 8.530 9.253 9.954 10.635 11.296 11.938 12.561 13.166 13.754 14.324 14.877 17.413 19.600 23.115 25.730 PVA-A 1 4% 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.79.3 8.111 8.760 9.385 9.986 10.563 11.118 11.652 12.166 12.659 13.134 13.590 15.622 17.292 19.793 21.482 1 (1 + )" 5% 0.952 1.859 2.723 3.546 4.329 5.076 5.786 6.463 7.108 7.722 8.306 8.863 9.394 9.899 10.380 10.838 11.274 11.690 12.085 12.462 14.094 15.372 17.159 18.256 Percent 0.943 1.833 2673 3.465 4.212 4.917 5.582 6.210…

K- Compute the present value of an ordinary annuity that pays $19,000 per year for 12 years at 10%. Present value of ordinary annuity of $1: 7% 8% 9% 10% 12% 7.499 7.139 6.805 6.495 5.938 7.943 7.536 7.161 6.814 6.194 8.358 7.904 7.487 7.103 6.424 8.745 8.244 6.628 9.108 8.559 6.811 11 12 13 14 15 A. $129,466 B. $134,957 C. $117,686 D. $228,000 7.786 7.367 8.061 7.606

5-17 EFFECTIVE INTEREST RATE You borrow $85,000, the annual kan payments are $8.273.99 for 30 years. What interest rate are you being changed? UNEVEN CASH FLOW STREAM Find the present values of the following cash fkrw streams at 8% compounded annually, 5-18

The following cash-flow streams need to be analyzed:   END OF YEAR CASH-FLOW STREAM $1 $2 $3 $4 5 W 100 200 200 300 1,$300 X 600 – – – – Y – – – – 11,200 Z $200 – $500 – 0,300 a. Calculate the future (terminal) value of each stream at the end of year 5 with a compound annual interest rate of 10 percent. b. Compute the present value of each stream if the discount rate is 14 percent.

Problem 10 Determine the present value of each perpetuity shown in the following table. Perpetuity Annual Amount Discount Rate A 8% $ 30,000 100,000 20,000 60,000 ABCD 265 12

A single payment of $15,000 @ 5% for 8 years. Please identify which table you used.

Find the missing values assuming continuously compounded interest. Initial                      Annual                          Time to                      Amount AfterInvestment               % Rate                        Double                         10 Years. ■                               4.5%                                  ■                            $10,000.00