Al-Rafidain Bank offers ordinary interest $1300 on the fixed deposit $25,000 for 182 days to their clients, if Rate of Return is 2.6 % 5.2 % 6.3 % 9.5 % O
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A: Amount Borrow = 5.000,000 time period = 8 years interest rate = 20% per year
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A: The present value of cash flow from year 0 to 5 can be calculated as follows:
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A: Hey champ,Welcome to this platform. Here you will get the answer with better quality in minimum…
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A: Future value (FV) can be calculated by using the following formula.
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A: We are going to use Present value approach to answer this question.
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- The average annual cost of damages caused by floods at Dona Rosario Villagelocated along Butuanon river is estimated at P700,000. To build a gravity dam to protectthe area from the floods, would cost P2,500,000 and would involve an annual maintenancecost of P20,000. With interest at 8% compounded annually, how many years will it takefor the dam to pay for itself? OPTIONS A. 4.0 years B. 4.5 years C. 5.0 years D. 5.5 yearsRecently, an Internet service provider (ISP) in the UK implemented a “no-strings US-style flat-rateplan” whereby its commercial subscribers can send and receive unlimited volume (measured ingigabytes) up to a cap of 10,000 gigabytes (per month) via their broadband Internet service for aflat monthly fee of £399.99. Under the old “metered plan,” Alistair Willoughby Cook sent andreceived a grand total of 3,500 gigabytes over their broadband connection and paid £399.99 inusage fees in a typical 30-day month.If all customers are exactly like Alistair, what is the impact of the flat-rate plan on consumerwelfare and the company’s profits? Explain.On average, it needs P250,000 per year and an additional P600,000 every 4 years for major repairs to maintain a certain three-storey office building. How much must be paid now to take care of these payments on a bank that offers 8% per year? choices: none of the above P143,999.078 P4,789,355.06 P5,000,000.06
- which one is correct please confirm? Q15: "Original exhange rate is £1 = US$1.4565, what is the reciprocal rate?" 1.1876 0.6866 0.842 2.3529You are being asked to evaluate the worthiness of an investment that requires you to spend $120,000 today in return for receiving $25,000 each year for seven years (starting one year from now). At the end of the seven year study period, the investment can be sold for $10,000. The MARR = 12% per year. Compute the AW of this investment. Round your answer to the nearest dollar. Answer should be -301Charlene plans to place an annual savings amount of A =$27,185 into a retirement program at the end of each year for 20 years starting next year. She expects to retire and start to draw a total of R =$60,000 per year one year after the twentieth deposit. Assume an effective earning rate of i =6% per year on the retirement investments and a long life. Determine and comment on the sensitivity of the size of the annual withdrawal R for variations in A and i a. Variation of ± 5% in the annual deposit A. b. Variation of ± 1% in the effective earning rate i, that is, ranging from 5% to 7% per year
- A businessman is faced with the prospect of fluctuating future budget for the maintenance of the generator. During the first 5 years, P1,000 per year will be budgeted. During the second five years, the annual budget will be P1,500 per year. In addition, P3,500 will be budgeted for an overhaul of the machine at the end of the fourth year and another P3,500 for an overhaul at the end of 8th year. Assuming compound interest at 6% per annum, what is the equivalent annual cost of maintenance?Consider three investment plans at an annual rate of 9.38%. • Investor A: Invest $2000 per year for the first 10 years of your career. At the end of 10 years, make no further investments, but reinvest the amount accumulated at the end of 10 years for the next 31 years. • Investor B: Do nothing for the first 10 years. Then start investing $2000 per year for the next 31 years. • Investor C: Invest $2000 per year for the entire 41 years. Note that all investments are made at the beginning of each year, the first deposit will be .made at the beginning of age 25 (n=0), and you want to calculate the balance at age of 65 (n=41).The monthly demand for ice cans being manufactured by Mr. Camus is 3200pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electricallyoperated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 andwhich cuts by 30% the unit cutting cost. Disregarding the cost of money, how manymonths will Mr. Camus be able to recover the cost of the machine if he decides to buynow?· A. 10 months· B. 11 months· C. 12 months· D. 13 months
- A FATHER WISHES TO PROVIDE P4,000.00 FOR HIS SON ON HIS 21ST BIRTHDAY. HOW MUCH SHOULD HE DEPOSIT EVERY 6 MONTHS IN A SAVINGS BANK WHICH PAYS 3% CONVERTED SEMI-ANNUALLY, IF THE FIRST DEPOSIT IS MADE WHEN THE SON IS 3 1/2 YEARS OLD? a.P67.88 b.P63.22 c.P65.20 d.P63.906. Myrvin made a 12-percentage-point investment of PHP10,000.00. According to the 72-year rule, it would take her money years to double. Group of answer choices 7 6 5 4Calculate the equivalent lump-sum amount 10 years now for the following cash flows: You invest $3,000 today, another $1, 500 one year from now, and still another $5,000 three years from now. You then receive $10,000 six years from now and $15,000 two years after the receipt of $10,000. The nominal rate is 15% per year compounded annually A. 6614 B.1635 C. 68,041 D. 16,819