Answered: A certain amount is invested 5 years…

A certain amount is invested 5 years and 6 months ago at an interest rate of 8% compounded semi - annually. The accrued amount now is P 347,054. How much was the amount invested?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 18E

See similar textbooks

Related questions

Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…

A: Number of bonds = 15 Coupon rate = 8% (Compounded quarterly) Time period = 9 years Yield to maturity…

Q: San Jose Realty Corporation acquired a tract of land on January 1, 2020 for P20 million. Transaction…

A: San Jose Realty Corporation Acquired a tract of land on Jan 1, 2020, for P20 million Transaction…

Q: ) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded…

A: Future Value is $200,000 Time period is 8 years Interest rate compounded monthly is 5% To Find:…

Q: The 40-year-old makes a contract by paying the 6500 TL he has to the insurance company. If the…

A: Amount of investment is 6500 TL Interest rate is 3%

Q: 2. The company is considering a project involving the purchase of new equipment. Change the data…

A: Here,

Q: Ciana wants to take out a $7,500 loan with a 5.3% APR. She can afford to pay $128 per month for loan…

A: The given payments are a form of annuity wherein an equal payment is made at eqaul intervals. The…

Q: A B 1 Particulars Values 2 Future Value (FV) 3 Interest rate Compounded monthly (I/Y) |0.05 4…

A: When interest is compounded monthly, the interest rate per annum shall be divided by 12 to calculate…

Q: Draw time line for (1) a $400 lump sum cash flow at the end of 3 years 2) An ordinary annuity of $…

A: Timeline is the graphical chart which shows the cash outflows and inflows over a period of time. It…

Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic…

A: Monthly payment (M) = $80 r = 7% per annum = 7%/12 per month = 0.5833% per month n = 35 years = 420…

Q: Q1: Explain the following: (250 words) Big Data Analysis Distributed Computing Virtualization

A: Big Data Analysis: Big data analytics refers to the application of advanced analytic techniques to…

Q: D3) The spot rate of Kenya shillings to Euros was 132kes = 1 euro. The forward rate was Ke, 131 = 1…

A: Exchange rate changes with time and interest rate in the market and there may be loss or gain on…

Q: Many mortgage company allow youpo "buy down" your interest rate of your loan by buying poir A point…

A: Loans are paid by the monthly payment that carry the payment of principal amount and payment of…

Q: The quarterly pay

A: The loan amount refers to the money which a person should owe from a bank or financial institution…

Q: recommended actions on how to address: Execution risk Strategic risk Reputation risk Process…

A: Financial risk refers to a variety of risks related with funding, such as financial transactions…

Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…

A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…

Q: Suppose a 15- year corporate bond has a 10% coupon rate and a $1,000 par value. Coupons are paid…

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: 2. What are the major factors involved in determining how much life insurance coverage a person or…

A: Life insurance is a contract in which an insurance company commits to pay a set sum following the…

Q: Practice B. I Total asset is PHP750,000. Sales is PHP1,500,000. What is the total asset turnover? 2.…

A: Accounts receivable turnover = sales/Accounts receivable

Q: You have $100 a month you can deposit into an account earning 3.9% APR, compounded monthly. How long…

A: Given that: Accumulated Value (A)=$10000 Principal amount (P)=$100 Interest rate (R)=3.9%=0.039 t=?…

Q: Year Net Cash Flow Alt 1 Net Cash Flow Ali PhP 11,000 - PhP 5000 5,000 2,000 4,000 3,000 3 3,000…

A: Capitalized cost is present value of all cost and benefits that are worth today considering interest…

Q: TR issues 6.0%, 10-year bonds with a total face amount of $1,500,000. The market interest rate for…

A: Here, To Find: Part 4. Issue price of the bond =? Part 5. Interest expense at first payment =? Part…

Q: Question 8 At the end of 2020, Diego Corporation reported a $40,000 balance in its common share…

A: Treasury shares are reacquired common shares of company. Common share account means shares issued…

Q: Suppose you borrow $1,000 of principal that must be repaid at the end of two years, along with…

A: Real interest rate is referred as an adjustments of an observed market rate regarding an inflation…

Q: d short 700 shares of XYZ Company at $43 per share. The initial margin requirement was 60%. (The…

A: Shares are bought and sold on the basis of some margin and some loan from broker and they are…

Q: Please show the formula used. Find the present value, in pesos, given an annual perpetuity of 1,000…

A: The present value of a perpetuity is simply calculated as ratio of annual cash flows and the…

Q: XYZ Company currently has bonds outstanding with a face value of $1,000 that mature in 18 years. The…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: The following table summarizes the yields to maturity on several one-year, zero-coupon securities:…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Firm CCC has no debt. Existing assets generate earnings of $20mil. per year forever. Discount…

A: Here, Existing Earnings = $20,000,000 Discount rate = 10% No. of outstanding shares = 5,000,000…

Q: An investor wants to earn a minimum return of 2.5% over the next 5 years. He doesn't want to take…

A: A portfolio manager is a professional who makes financial decisions and manages investments on…

Q: search and make a reflection paper on how the Government exerted efforts to help its citizens during…

A: Taxes are mandatory contributions made by government agencies from individuals or businesses,…

Q: Company A has a project which is expected to provide positive cash flows of $4,400 the first year,…

A: Internal rate of return IRR is one such capital budgeting approach. For a given project or…

Q: Let's say you are a credit analyst in the asset management department of a large bank or insurance…

A: We are not allowed to use excel so the excel sheet cannot be attached but I have provided the…

Q: What’s one personal finance lesson that you find important?

A: Handling the reality of personal money may be difficult, even for an adult with a lot of…

Q: You have $100,000 to invest. You choose to put $150,000 into the market by borrowing $50,000. a. If…

A: Investment means engaging your funds to generate income for the future. Return means amount earned…

Q: Analysts forecast Power Puff to generate $110 million of free cash flow at the end of the current…

A: The unlevered company has no debt in its financing, i.e., it is entirely funded by equity. On the…

Q: The current ratio of a company is 6:1 and its acid-test ratio is 1:1. If the inventories and prepaid…

A: Current Liabilities: These are liabilities that are due in less than a year and are expected to pay…

Q: A bond issued by Delta Corporation matures in 12 years. It has a 12.5 percent annual coupon rate and…

A: The bond value is calculated as sum of present value of cash flows from bond

Q: What is the legal rights of stockholders (common and perferred).

A: Stockholder: A stockholder is also known as a corporate shareholder or an individual who owns at…

Q: The table presents 2019 data from the national income and product accounts of the U.S. A. Which…

A: The Expenditure method: GDP = Personal Consumption + Gross Private Investment + Government's…

Q: e Target's stock has an expected return of 22% and a volatility of 40%, Hershey's stock has an…

A: Return on portfolio and volatility of the portfolio depends on weights of different components of…

Q: Suppose a bond has a price today of $800, a coupon rate of 4.95%, and six years remaining to…

A: A bond is a debt instrument that has a specific maturity date. The yield to maturity is the rate…

Q: then the present value factor of the lumpsum is:

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…

Q: Kirk, Klein & Co. requires $108,000 fifteen years from now to retire a debt. A sinking fund (a) What…

A: Loan: It is the amount due to the lender by the borrower and the borrower pays periodic payments to…

Q: 1.) To pay for your education, you’ve taken out RM25,000 in student loans. If you make monthly…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: Wisdom Tree U.S. Total Earnings Fund (EXT) returns for the past 5 years have been: 2015 -2.30 % 2017…

A: Question 8 - Solved using excel Correct option - A ; 13.60%

Q: A commercial farmer wants to acquire a mechanised feed spreader that costs $80,000. He intends to…

A: Given: Initial COst = $80,000 Time = 5 years Lase payments= $19000 in advance for 5 years Salvage…

Q: When a low-price stock is replaced by a high-price stock in the Dow Jones index, the divisor will be…

A: Dow Jones index is a price -weigjhted index. Price weighted index is the average of current share…

Q: Question 3a continued. The coupon rate experienced by the investor is Y percent. What is Y? 0.1…

A: The coupon rate is the annual interest rate on the bond. The capital gains yield in the capital gain…

Q: Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.…

A: Note: The Answer, given for part b is mentioned incorrect, so we are solving the correct one for you…

Concept explainers

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.

Question

A certain amount is invested 5 years and 6 months ago at an interest rate of 8% compounded semi - annually. The accrued amount now is P 347,054. How much was the amount invested?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?
If 2,000 is invested at an interest rate at 8% compounded annually for 3 years, findthe compound interest.
What is the present value of $3,000 invested at the end of each year for 7 years at a compound interest rate of 6.5% p.a.
The annual interest, compounded annually at which $510 must be invested for it to grow to $2,005.82 in 11 years ? The annual interest rate, compounded annually, at which $510 must be invested for it to grow to $2,005.82 in 11 years is Round to two decimal places
If Php 1,000 becomes Php 1,811.36 after 5 years when invested at an unknown rate of interest compounded bi-quarter, determine the effective rate of interest.
Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate of 6% for 5 years. How many times is compunding done in a year. What is the initial or rincipal amount. then what is the rate of interest?
Find the amount at the end of 5 years and 4 months if P8,000 is invested at 93% compounded quarterly, using simple interest for anytime less than a year interest period.
Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded annually, how much interest is earned over the first 6 years? If the interest is compounded monthly, how much interest is earned over the first 6 years?
Calculate the extra compound interest received when R18 400 invested at 13,2% per annum for 11,5 years interest rate paid annually is invested at the same rate but with interest paid monthly
How much interest was earned by an investment that earns at a rate of 9% compounded semiannually for 7 years if the initial investment is at Php 18,000.00?
A sum of P1,000.00 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year.
Determine the accumulated value, after five years, of an investment worth ₱12,300.00 if the interest is: a. Simple interest at 6.5% per annum; b. 8.5% compounded annually; c. 8% compounded semi-annually; d. 7.5% compounded quarterly; e. 7% compounded monthly; f. 6% compounded daily; g. 5% compounded continuously.