A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at the end of 20 years if the cost of money is 149% compounded semiannually? Use the editor to format your answer

A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at the end of 20 years if the cost of money is 149% compounded semiannually? Use the editor to format your answer

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 24P

See similar textbooks

Related questions

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: The endowment amount worth after 10 years can be calculated with the help of Future value of Annuity…

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: In this we have to calculate monthly interest rate and than calculate future value FACTOR and get…

Q: Takao inherited regular endowment of P100,000 every end of 3 months for 10 years. However, he may…

A: Given: Particulars Amount Inherited amount(PMT) 100,000 Interest rate 14% Years…

Q: An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest…

A: Final value is computed in nominal terms as the compounded value of the initial investment. The…

Q: At the conclusion of each year, each participant made a deposit of 1500.35 into a sinking fund. What…

A: This is used in the case of a future annuity – suppose an equal sum of money is invested in the bank…

Q: Chuck Brown will receive from his investment cash flows of $3,165, $3,460, and $3,810 at the end of…

A: Future value is the expected value of current worth in a future date at a given rate of return.

Q: A corporation creates a sinking fund in order to have $630,000 to replace some machinery in 8 years.…

A: Monthly Loan Payments: These are periodic payments made by the borrower for taking the loan from…

Q: A man wishes to have P350,000.00 when he retires 15 years from now. If he can expect to receive 4%…

A: The future value of an annuity due is the total future value of each cash flow which is made at the…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: Regular endowment (D) = P 100,000 Period = 10 Years Number of quarterly payments (n) = 10*4 = 40…

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: An annuity is a series of cash flows that involve an equivalent periodic amount over a specific time…

Q: A property worth $21.5M is purchased with a $5M down payment. The balance is to be paid monthly in…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A man wishes his son to receive $250,000 ten years from now. What amount should he invest if it will…

A: Given: FV = $250,000 To calculate: Present Value Let's understand the interest rates:…

Q: How much must a man place in a fund at the end of each month in order to have P12,500 at the end of…

A: Let the monthly payment = X Future value of annuity = P 12500 Interest rate = 7% per annum Duration…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: Annuity = 100,000 Quarterly Annuity N = 40 quarters (10 years) Interest Rate = 14%/4 = 3.5% per…

Q: An old man buys a piece of lot for 150,000 down payment and 12 deferred semi-annual payments of 8500…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Madam plans to fund his individual retirement account with the maximum contribution of P20,000 at…

A: Note: All the Given Options are incorrect, so we are solving the correct one for you as per the…

Q: A man inherited regular endowment of P103,000 every end of 2 months for 10 years. However, he may…

A: There are 6 bi-monthly period in a year N = 6*10, FV = 0, PMT = 103,000, rate = 14%/6 use PV…

Q: A business sets up a sinking fund so they will have a $49,000.00 to pay for a replacement piece of…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: You donate $400,000 to provide annual scholarships in perpetuity. The money is deposited into an…

A: in this we have to find out effective annual interest rate and from that we will get annual…

Q: You won $100 000 in a lottery and you want to set some of that sum aside for 10 years. After 10…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Monthly endowment (M) = P 10000 Interest rate = 14% compounded semiannually Let's find the effective…

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: Fund grant for each year = P120,000 for 5 years Grant each quarter = P30,000 for next 5 years Grant…

Q: What amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly,…

A: Time period = 30 years Interest rate = 8% Future Value = P5,000,000

Q: A man deposits P5,000 at the end of every year earning 7.50% compounded continuously. Determine the…

A: Annual deposit (P) = P5000 Interest rate = 7.50% e = 2.7182818284590452353602874713527 Annual…

Q: . A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To…

A: When a number of payments or receipts of equal amount is made at equal intervals of time, it is…

Q: Ronnie Cox has just inherited $27,000. How much of this money should he set aside today to have…

A: the formula for calculating present value = A = P ( 1 + i ) n P = A / ( 1 + i )n A = $18000…

Q: 1.In order to create an endowment, which pays $100,000 per year, forever, starting three years from…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Answer the question and draw a cashflow diagram. A man inherited a regular endowment of P10,000…

A: Given: Amount = P10000 Years = 10 Interest rate = 14%

Q: Aaron contributed $2100 to his RRSP at the end of every half-year. What was the value of his RRSP…

A: The worth of a present commodity at a date in the future predicated on an estimated rate of growth…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: Quarterly payment (P) = P 100,000 Period = 10 Years Number of quarterly payment (n) = 10*4 = 40…

Q: A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this…

A: The endowment worth can be computed using the Future Value of Annuity formula.

Q: Mr COVID is 25 years old and is planning to accumulate 10 million pesos on the day of his retirement…

A: Accumulation at retirement = 10,000,000 N = Number of withdrawals = 29 years and 6 months i.e. 354…

Q: A business must raise $50,000 in 9 years. What should be the size of the owners' quarterly payment…

A: A sinking fund is a fund that contains money or funds set aside for paying obligations or debt or…

Q: A widow currently has a $84,000 investment that yields 6 percent annually. Can she withdraw $21,000…

A: The present Value is the present worth of the amount that will be paid/received in the future.

Q: A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: $25,000 at the beginning of each year for 30 years starting when he retires 10 years from now. If…

A: GIVEN, A=$ 25000 N=30 r=5% beginning payment this payment begins 10 years form now.

Q: An inheritance of $120,000 is invested in a fund that earns 7.7% compounded semiannually. If this…

A: Annuity is referred as the instalment paid at the regular interval for a particular period. Ordinary…

Q: A man invested 100,000 every end of the year for 10 years, then waited for another 10years for his…

A: Annual investment (P) = 100,000 Interest rate (r) = 8% Number of annual investments (n) = 10 Number…

Q: An engineer wishes to have $3 million by the time he retires in 35 years. Assuming 8% nominal…

A: Retirement planning is the process of determining retirement income goals, and the actions and…

Q: Mr. Glen Secundo won a lottery paying P1,400,000 at the beginning of each year for 15 years. Find…

A: solution: Present value is the today's value of a future amount or future annual cash flows…

Q: A corporation creates a sinking fund in order to have $790,000 to replace some machinery in 11…

A: A fund that is created to repay a debt or replacement of an asset by putting an equal sum of amount…

Q: Abe Washington sold some property in Oregon and will receive $40,000 in 5 equal payments of $8,000…

A: The present value of future cash inflow is calculated by taking present value factor @9%. At 9%…

Q: At the start of every year Jane puts $100 into an investment that gets 5% interest at the end of the…

A: According to the requirement, question (b) is solved.

Q: In order to create an endowment, which pays $100,000 per year, forever, how much money must be set…

A: The provided information are: Cash payment (C) = $100000 Interest rate (r) = 10% = 0.10

Q: Jenny Sherrer has $29,000 to invest and believes that she will earn 8% compounded semiannually. Find…

A: FV = PV (1 + r)t where, FV = Future ValuePV = Present Valuer = Rate of Interestt = Years…

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: 1. A man inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he…

A: Given information : Regular endowment 100000 Time period (TARGET) 4 Interest rate 14% In…

Question

Write the solution including the CASH FLOW DIAGRAM

A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at the end of
20 years if the cost of money is 14% compounded semiannually?
Use the editor to format your answer

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 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

Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the debt in 3 annual installments at the end of each year, which would include interest at 14%. Draw a time line for the problem. Indicate what table to use. Look up the table value and place it in a brief formula. Solve.
Next Level Potter wishes to deposit a sum that at 12% interest, compounded semiannually, will permit 2 withdrawals: 40,000 at the end of 4 years and 50,000 at the end of 10 years. Analyze the problem to determine the required deposit, stating the procedure to follow and the tables to use in developing the solution.
A man inherited a regular endowment of P100,000 every end of 3 months for 10 years. However, he may choose to get a single lump sum payment at the end of 4 years. How much is this lump sum if the cost of money is 14% compounded quarterly?
A man inherited regular endowment of P103,000 every end of 2 months for 10 years. However, he may choose to get a single lump sum payment at the end of 4 years. How much is this lump sum if the cost of money is 14% compounded bi-monthly.
Answer the question and draw a cashflow diagram. A man inherited a regular endowment of P10,000 every month for 10 years. How much is the lump sum at the end of 20 years if the cost of money is 14% compounded semiannually?
A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this lump sum at the end of 10 years if the cost of money is 14% compounded quarterly? A.P1,511,433.22 B.P345,789.22 C.P141,059.88 D.P 8,455.027.78
A man inherited a regular endowment of P100,000 every end of 3 months for 10 year. How much is this lump sum at the end of 10 years if the cost of money is 14% compounded quarterly? a. P141,059.88 b. P1,511,433.22 c. P345,789.22 d. P 8,455.027.78
In order to accumulate $1,000,000 after 35 years, calculate the amounts that must be invested at the end of each month if the invested funds earn 10% compounded semiannually.
Steffi Derr expects to invest $10,000 annually that will earn 8%. How many annual investments must Derr make to accumulate $303,243 on the date of the last investment?