Adam purchases a retirement annuity that will pay him $1,500 at the end of every six months for the first eight years and $100 at the end of every month for the next seven years. The annuity earns interest at a rate of 4% compounded quarterly. a. What was the purchase price of the annuity? Round to the nearest cent b. How much interest did Adam receive from the annuity?

Q: Deferred Annuity (please don’t use excel) 1. Find the present value of a deferred annuity of P1,250…

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

Q: Suppose a bond fund has an initial portfolio value of $100 million. The following table provides the…

A: Doller weighted return Doller weighted rate of return is a measure to identify the performance of an…

Q: Which of the following statements is false?   A.   Banks have high levels of liquidity assets and…

A: Duration of bond measures the sensitivity of prices of bonds with change in interest rate in the…

Q: Jolene & Marc saved a deposit for $500,000 to buy their first investment property with a market…

A: Solution : Total Return on wealth means return on his investment after deduction of all Expenses…

Q: Greg is bullish on the stock of Google and expects the company to deliver excellent results. The…

A: Given,  The theoretical value of an option is calculated by the Black Scholes model .  Assumptions…

Q: A bond has a face value of $3500 and matures in 10 years. The interest rate is 7% payable semi-…

A: Purchase price of bond will be equal to present value of principal amount and present value of…

Q: (A/P, 12% quarterly,8 yrs) has a value equals to Select one: a. 0.049      b. 0.048         c.…

A: A/P is Capital recovery factor i is interest rate i.e. 12% = 12%4=3% n is no. of periods 8×4 = 32…

Q: Why do firms hedge their risk and what determines the choice of contract for hedging?

A: Hedging is a risk management approach that involves acquiring an opposing position in a comparable…

Q: Milhouse, 22, is about to begin his career as a rocket scientist for a NASA contractor. Being a…

A: Given Age of Milhouse = 22years He will retire at the age of 65 years  He wants to buy a boat =…

Q: how do you determine if a stock has high or low or average risk when compared to the S&P 500?

A: In the world of investing and finance no two stocks are similar. Some stocks are riskier than the…

Q: An elective project is currently under review. It requires an initial investment of $116,000 for…

A: IRR is the Internal rate of return. It is that rate at which the NPV of a project is zero.

Q: Compute for EOQ for Company with Annual Usage of 32,000 units in 360 working days, Ordering cost of…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Maria's retirement fund has an accumulated amount of $50,000. If it has been earning interest at…

A: Given that: Monthly Interest rate =2.86%/12 =0.002383333%Quarterlyrate=(1+0.002383333)3-1=0.0071669…

Q: Define the following new and advanced derivatives: Equity forwards, Warrants, Equity-linked debt,…

A: A derivative is a contract between two or more parties in which the value of one asset is derived…

Q: Given cash flows for Concatenator Manufacturing Division, calculate PV of near- term cash flows, PV…

A: Here, r is 10% g is 6% Free Cash Flows are as follows:

Q: QUESTION ONE Bahrain Gas Company dividend per share next year is expected to be 3.500. An analysis…

A: Expected dividend (D1) = 3.5 Average growth rate (g) = 5% pa According to dividend discounting model…

Q: 5. Find the amount and the present value of an annusty due of P370 every month for 4 years, if money…

A: Note: Only first independent question can be solved as per guidelines. Please post other unrelated…

Q: 4. Your friend wants to sell his shawarma business in mall of Dhahran. The rent of shop, machine,…

A: Solution : For Calculation of Minimum Price we should adding the total expenses which was incurred…

Q: 5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2…

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

Q: S180.000 mortgage was amortized over 15 years by monthly repayments. The nerest rate on the mortgage…

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

Q: As an analyst, how do you go about choosing a peer group of companies for an individual company?

A: Peer groups form the basis of payroll exercises for many companies. The CEO's salary benchmark…

Q: Consider a non-paying dividend stock sells for 150. George wants to sell his stock in one year for a…

A: Hedging is an risk management technique in which an investors manages ot removes his potential risk…

Q: Simple Balance Sheet For Bank A Liabilities + Net Worth Assets $40,000 U.S. Treasury Securities…

A: According to the Accounting Equation Assets = Liabilities + Worth For every $1 of U.S securties in…

Q: Your company owns and manages several ports and is considering investing in a new project to expand…

A: Initial Investment  $ 6,50,00,000.00 Depreciable Equipment  $ 1,50,00,000.00 Further Investment…

Q: How important are assumptions in preparing a business project feasibility? Justify your answer. What…

A: A development plan, sometimes referred as a feasible analysis or sustainability report, is a method…

Q: A. Calculate the operating income percentage for each of the courses. Round your percentages to one…

A: Operating Income: It refers to the income generated from the normal business operations of the…

Q: 1. At the beginning of last year you invested 40000 lei in 800 shares of a corporation. At the end…

A: The Expected value, expected return, and holding period return: The value of a portfolio at a given…

Q: a. Compute the net present value of each opportunity. Which should Mr. Kearns adopt based on the net…

A: Net Present Value: Net present value is the profitability of a project in dollar terms. It is…

Q: You wish to invest ₱10,000 for a period of 5 years. Which of the following investments would be best…

A: Bank A - Simple Interest  Future Value = (Principal + ( Principal * Interest rate * Number of…

Q: Rate at which a foreign exchange dealer converts one currency into another currency on a particular…

A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Q: the interest rate om 56,000 loan is 8.4% compounded semiannually. quarterly payments will years…

A: Given, PV = 56,000Interest= 8.4% Semiannually Compund frequency CY=2 Payment frequecy = PY = 4…

Q: the rate of return

A: The rate of return refers to the earnings on the investment invested by the investors. The higher…

Q: A 180-day simple interest note was signed on March 15, 20xx with a face value of 65,000 at 8.25% per…

A: Here, Face value = 65,000 Interest rate = 8.25% Discount rate = 11% Time to maturity = 180 days To…

Q: Ten years ago, Nana Recovery purchased an equipment to move disabled tractors for Php285,000. The…

A: NPV means PV of net benefits which will arise from the project over the life of the project. It is…

Q: The following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K):…

A: Inter-segment sales arises when revenue are generated  due to transfer of goods from one segment of…

Q: A village recently completed the construction of a new water tower. The entire cost of the water…

A: The equal payment flow which occurs for a finite period and ends after lapse of finite time period…

Q: Given a 10% interest rate, what is the equivalent uniform annual worth of a system, given the…

A: The equal annual net cash flow is known as the equivalent uniform annual worth. It is calculated by…

Q: Lea buys a sala set. She pays P2, 500 down payment and pays P1, 200 per month for 2 years. If…

A: Cash equivalent of Sala set = Down Payment + Monthly installments

Q: Question 1 of 11 A mortgage for a condominium had a principal balance of $42,000 that had to be…

A: The time value of money method is used for computing the monthly payments and for finding the number…

Q: Calculate the price of the bond if the market interest rate falls from 4% to 3% per half-year. Com-…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: A $660,000 townhome in Richmond Hill was purchased with a down payment of 20% of the amount. A…

A: Given That: Cost of Townhome=$660000 Down payment = 20% Down payment amount = 20% of…

Q: Last Tuesday, Cute Camel Woodcraft Company lost a portion of its planning and financial data when…

A: A project’s IRR represents the return the project would generate when its NPV is zero or the…

Q: Quantitative Problem: Today, interest rates on 1-year T-bonds yield 1.7%, interest rates on 2-year…

A: a) Annualized Forward rate of 1 year T-bond: 1years from now=((1+2Year…

Q: 3. Complete the decision rule for the IRR method. If then the project is economically justified.

A: To select the project based on IRR,  IRR should be greater than required rate of return.  If IRR is…

Q: What does it mean by "Financial Services" when pertaining to the North American Free Trade Area

A: The North American Free Trade Area is popularly known as NAFTA. This free trade agreement was put…

Q: Suppose you held a diversified portfolio consisting of a $7,500 investment in each of 20 different…

A: The portfolio's beta is the weighted average of the individual asset betas, with the weights…

Q: A bank reports that the total amount of its net loans and leases outstanding is $936 million, its…

A: Financial risk is referred as the possibility of losing out the funds on the business venture or an…

Q: Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to…

A: The PV annuity formula for monthly payment of loan is: PV=PMT×1-(1+i)-ni Here PV=4000 PMT=? n=60…

Q: What is the duration of a five-year, $1,000 Treasury bond with a 10 percent annua selling at par…

A: Duration of bond show sensitivity of bond prices to the changes in the interest rate of bond. That…

Q: Assume yourself as a senior manager of a healthcare organization and you have given the…

A: A capital investment decision by a company is a long-term growth strategy. To secure future growth,…

Management Information Systems

While undertaking any business decisions, data is the most important aspect. An information system (IS) is a set of data, computing devices and management methods that support routine company operations. A management information system (MIS) is a specific subset of IS.