A company that manufactures car prakes invested $350 exactly 5 years go in some bonds. If the bonds are ow worth $500, what rate of return er year did the company make on he basis of simple interest?
Q: An alumni of Jamia Millia Islamia wanted to set up an endowment fund that would award scholarships…
A: Formula: Capitalised cost(CW) =Annual cost + (Annual cost / interest rate).
Q: Leon and Heidi decided to invest $32500 annually for only the first nine years of their marriage.…
A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…
Q: fa low cost house and lot worth P 87,000 vere offered at 10% down payment and P 500 per month for 25…
A:
Q: Homework/ An electrical engineer wants to deposit an amount P now such that she can withdraw an…
A: Given: Annual amount withdrawn of = $2,000/ year Life = 5 years The second annual amount is…
Q: For the cash flows shown in the diagram, determine the present worth at time 0 for an interest rate…
A: here we calculate the present worth of the given cashflow so the calculation of the following by…
Q: An engineer made a development in the production process which will save his company 10,000$ per…
A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…
Q: Q2: A lump-sum loan if 5,000 $ is needed by Ahmed to pay for college expenses. he has obtained small…
A: If the loan amount is $5000 and if Ahmed pays 12% interest per year and repayment will be done in…
Q: (Kindly give the given, complete and detailed solution. Thank you) Ten years ago, you deposited…
A: Compound interest rate is the interest on loan based on both the initial principal and the…
Q: 00 seventee
A: Given : Number of years (n)=17, Present value (PV)=10000, Future Value (FV)=50000
Q: A man invested P50,000 now for the college education of his 2-year old son. If the fund earns 14%…
A: Here we calculate the amount will the son get each year starting from his 17th to the 22th birthday…
Q: a) Cash Flow Diagram b) manual solution Company A plans to get a loan that will be repaid with…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: Which of the following 1-year investments has the highest rate of return? (A) $12,500 that yields…
A: Rate of return is the interest amount earned or recieved on invested capital for specific period…
Q: Which of the following 1-year investments has the highest rate of return: $12,500 that yields $1125…
A:
Q: If vou imvest # 500 today, it will become you 91000 at Ythe e upel of 4.5 Syears. What is the…
A: The effective interest rate refers to the rate of interest gained on an investment or paid on a loan…
Q: Thank you !!!!!! Sherry expects to deposit $2000 now, $1000 4 years from now, and $2500 7 years…
A: *Answer:
Q: Kyle is a grade 5 student currently taking his modular class at home since the pandemic happened in…
A: Between 5th and high school its 7 years Amount saved = 500Php twice a month Interest rate (i) =…
Q: pur years to maturity, a $4000 face value, and 5% coupon rate with annual coupons. Which
A: The yield to maturity (YTM) is the rate pace of return for a security accepting that the financial…
Q: P10,000 at 12% interest and paid P2000 per annum for the first 4 years. What
A: *Answer:
Q: If 1200 amounts to 8000 when deposited annually for 6 years, what is the rate of return?
A: Future Value is the value of an investment at a specific date in the future at a certain rate of…
Q: Sonia’s house is worth $350,000. Homes have been appreciating at 5.7% per year for several years. If…
A: Today's worth of Sonia's house = $350,000 Appreciation rate = 5.7% = 0.057 Time period = 15 years
Q: At an interest rate of 10% per year, the perpetual annual cost of $70000 now. What will be the value…
A: The interest rate = 10% Present cost = $70000 Time period = 10 years
Q: 7. A trusted friend told you that a cash flow sequence that started at $3000 in year 1 and increased…
A: here we calculate the future worth and conclude her decision regards this concern is she wrong or…
Q: Gansen plans to get married in 10 years time. Gansen wants to have RM160000 by that time. His…
A: Gansen wants to have money after 10 years = RM160000 Wedding gift = RM 58000 Amount needed after…
Q: An A&E firm planning for a future expansion deposited $40,000 each year for 5 years into a…
A:
Q: (a) An interest rate of 6.8% per semiannual period compounded weekly is equivalent to what weekly…
A: The interest rate is paid by the bank to depositors who choose to lend their money to the bank. The…
Q: astute investor; all your money earns at 20% per vear. If you have already saved $9500, the amount…
A: here we find the right option of the given by following method given below as;
Q: a) Cash Flow Diagram b) manual solution Company A wishes to have $100 million available in 5 years…
A: Future value (F) = $100,000,000 Time period (n) = 5 years Interest rate (r) = 10% compounded…
Q: Approximately, what is the value of the total Present worth (where Ptotal= PA + PG) if G (arithmetic…
A: The present worth of an arithmetic gradient cash flow series is: P= Present worth of base amount +…
Q: Kyle is a grade 5 student currently taking his modular class at home since the pandemic happened in…
A: Between 5th and high school its 7 years Amount saved = 500Php twice a month Interest rate (i) =…
Q: A project being considered by the XYZ Company will have $100,000 in construction costs in each of…
A: The present value of a project is the current value of all its future inflows. The method of present…
Q: The compound interest rate per year that amounts of $1000 one year ago and $1345.60 one year hence…
A: The future value (F) is 1,345.60, present value is (P) of $1,000, time period (n) is 2 year. The…
Q: for a firm's production process. The initial cost $200,000 with annual costs of $50,000 and saving…
A: Given that, Annual cost = $50,000 Savings = $90,000 and increment by $3,000 (G) after year-1…
Q: hat is the value of K on the let hand cash-low diagram that is equivalent to the right hand cash fow…
A: here by calculating the present value of the both of the cashflow we will find the value of K so,…
Q: Mr. Juan dela Cruz borrowed P 1,000 and was able to sign a promissory note that he would pay P…
A: Given Borrowed amount = 1000 Time = 4 years Future worth = 2032.79
Q: You need P 4000 per year for four years to go to college. Your father invested P8000 in 7% account…
A: At the birth of a child, the father invested P8000, we know that if we invest x(let) @ 7% then…
Q: Jose graduated in engineering 5 years ago. His employer will give him a raise of $8,000 per year if…
A: The present value (PV) is the existing valuation provided a defined rate of return of a potential…
Q: 2. Firm wishes to have $3,000 seven years from now. What amount should be deposited now at an…
A: Given information: Future value (FV)= $3,000 Time period (nper)= 7 years Interest rate (rate)= 5%…
Q: A man invests 10,000 dollars now for the college education of his 2 yrs old son. If the fund earns…
A: Initial Investment = 10,000 Interest rate = 14%
Q: Parkhill, Smith, and Cooper, a consulting engineering firm, pays a bonus to each engineer at the end…
A:
Q: An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid…
A: Given: Cost of one-acre lot = $12,700 Each year she paid $175 of property taxes at the end of 7…
Q: (engineering economic) How much is the monthly installment for a year when borrowing $1000 with an…
A: Given, Amount- 1000 ROT- 18%
Q: Find the What is the CC of initial cost S300,000, annual costs of $35,000, and recurring costs every…
A: Here we calculate the Capital Cost by using the given information so calculation of the following by…
Q: A recently hired chief executive officer wants to reduce future production costs to improve the…
A: The investment amount = $82000 Annual investment for four years = $52000 Interest rate = 12% Time…
Q: After graduating from college Selim wanted to have his own business, so he borrowed 10,000,000 cens…
A: To repay the loan first he has to calculate the interest rate and the principal amount . And then…
Q: If you had $1000 now and invested it at 4%, how much would it be worth 12 years from now?
A: Present Value = PV = $1000 Interest Rate = r = 4% Number of years = n = 12
Q: What is the difference etween Nominal Rate and ffective Rate of Interest? 10% per year compounde
A: Effective interest rate is more commonly known as real interest rate.
Q: Use technology to compute the balance in each of the following accounts. a. An account with monthly…
A: A) Given that an amount of $4000 invested at the 4% interest rate and the amount is compounded…
Q: nual solution Determine the 12-year annual equivalent of a uniform series of payments of $20,000…
A: Formula for calculating uniform series of payment P = A [ (1 + i) n - 1 ] / [ i (1 + i) n ]…
Step by step
Solved in 2 steps with 1 images
- Find the present worth today in real value corresponding to the cur- rent values shown below for a 4 percent ination rate and a 4 percent interest rate. a. $400 three years from now b. $400 three years ago c. $10 next year d. $350 983 in 10 years from now e. £1 one thousand years ago the answer is 292 f. $1 000 000 000 three hundred years from nowTwo oil wells are for sale. The first will yield payments of $11,400 at the end of each of the next 11 years, while the second will yield $6,100 at the end of each of the next 24 years. Interest rates are assumed to hold steady at 7.9% per year over the next 24 years. Which has the higher present value? the first oil wellthe second oil well they are the samecannot be determinedEconomics In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the 54-month interest rate is currently 4%, with a volatility of 120 basis points (bps). Explain, using equations with properly-defined mathematical notation, how to map this cash flow to vertices at 4 years and 5 years, in such a way that the volatility of the present value of the mapped cash flow remains at 120 bps. Suppose the 4-year rate has a volatility of 110 bps and the 5-year rate has a volatility of 150 bps, and their correlation is 0.9. How much should be mapped to each vertex. Give your answer in PV terms and round your answers to whole $ values.
- 2. Assume a bond with the following characteristics: face value = $1000; maturity = 5 years; N yearly coupon payments = $100. a. If the current price of this bond is $850, state what the formula is to calculate the bond's yield to maturity and state the range of interest rates where the yield to maturity should fall b. If you purchased this bond at face value and held it for 1 year, when you resold it for $850, what is the bond's rate of return?A company invests $6,250 at the beginning ofa seven-year project. At the end of every year forthe first five years, the project generates $1,550. Atthe end of the sixth year, the project generates nomoney. At the end of the seventh year, the project isterminated. How much must the project generate atthe end of the seventh year to realize 14% return onthe initial investment?Compute the rate of return on the $40,000 investment that yields a recurring benefit of $5,000 every other year starting 1 year from now and a benefit of $2,500 every other year starting 2 years from now. (ANS: 9.52%) How to solve this?
- Answer both part 1 &2 i will rate PART A: Ahmed make an annual contribution of $3,000 to his savings account at the end ofeach month for 10 months. If the account earns 7% interest monthly, how much can be atthe end?PART B:Ahmed buy a gold for $2000 and sell it for $2500. it takes 7 years, what would bethe compound annual rate of return on your investment?You can buy a property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.) a. If the interest rate is 8%, what is the present value of the sales price? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. Is the property investment attractive to you? c-1. What is the present value of the future cash flows if you also could earn $200,000 per-year rent on the property? The rent is paid at the end of each year. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. c-2. Is the property investment attractive to you now?10.You now have $20,000 which can be invested at 9% per year. c.If you borrowed that $20,000 to be paid back over13 years at 9%, what are your annual payments? d.How much must you save per year for 13 years at 9% to accumulate $20,000?
- The Turners have 10 years to save a lump-sum amount for their child’s college education. Today a four-year college education costs $75,000, and this is expected to increase by10%per year into the foreseeable future. a. If the Turners can earn 6% per year on a conservative investment in a highly rated taxfree municipal bond, how much money must they save each year for the next 10 years to afford to send their child to college? b. If a certain college will “freeze” the cost of education in 10 years for a lump-sum of current value $150,000, is this a good deal?2. Nathan and Stephanie are saving for their daughter's college education. Their daughter, Paige, is now 8 years old and will be entering college 10 years from now (t = 10). College tuition and expenses at State U. are currently $16,000 a year and are expected to increase at a rate of 4% a year. They expect Paige to graduate in 4 years (if Paige wants to go to graduate school, she's on her own). Tuition and other costs will be due at the beginning of each school year (at t = 10, 11, 12, and 13). So far, Nathan and Stephanie have built up $9,000 in the college savings account. Their long-run financial plan is to contribute $3,000 a year at the beginning of each of the next five years (at t = 0, 1, 2, 3, and 4). Then they plan to make 6 equal annual contributions at the end of each of the following 6 years (t = 5, 6, 7, 8, 9, and 10). Their investment account is expected to earn 8%. How large must the annual payments be in the subsequent 6 years (t = 5, 6, 7, 8, 9, and 10) to meet their…a) Suppose you put $350 into a bank account today. Interest is paid annually and the annual interest rate is 6 percent. What is the future value of the $350 after 4 years? b) Suppose you are deciding whether to buy a particular bond from your local municipality. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. Assume the interest rateis6percent. Underwhatcircumstanceswillyoubuythebond?Meaninguptowhatpriceareyou willing to pay.
