Q: (a) If the money is placed in an account that will pay 13% interest compounded annually, how large…
A: Present Worth: It is the present value of the cashflows including benefits and costs of the project…
Q: c) A person invests ugx.200,000 at an interest rate of 10% compounding annually. He receives ugx…
A: Present value shows the amount that is presently worth. It is calculated by using number of periods,…
Q: he internal rate of return method is used to analyze a $831,500 capital investment Determine a…
A: Internal rate of return is rate on which present value of cash flow is equal to the initial…
Q: What is the present worth of a perpetual annuity of $2,000 each payable at the end of each year?…
A: Amount payable at the end of each year is $2,000 Interest rate is 10% compounded quaterly Quaterly…
Q: What is the payback if the investment is $22,000 and the after tax benefits are: Years 1 & 2 =…
A: Investment amount = $ 22,000
Q: Find the present value of a perpetuity that pays $2,000 per year and the interest rate is 10%.
A: We are given following details : Annual cash flow in perpetuity = $2000 Interest rate = 10% We need…
Q: If you place $25,500 into an 80-day short-term GIC at TD Canada Trust earning 0.55% simple interest,…
A: Maturity value = Amount invested + Interest earned
Q: What is the present worth of a 3 years annuity paying P3,000 at the end of each year, with interest…
A: Annuity is a series of uniform cash flows over a period of time.
Q: If you have PhP 5,000.00, which of the following investment alternatives would provide the greatest…
A: We will calculate wealth for each alternative, Part A) 72/100 % = .72% simple interest Value After…
Q: An investment of $100,000 today will make advance quarterly payments of $4,000. If the annuity can…
A: We need to use NPER formula in excel to calculate number of periods to depleted annuity. Formula is…
Q: If the cost of capital is 12%, what is the present value of a perpetuity that pays $11,000 at the…
A: The present value of perpetuity can be calculated as ratio of cash flows and the discount rate
Q: A person invested JD 50,000, after 4 years he invested an additional JD10,000, if after 10 years the…
A: Annual interest rate on investment is the actual return earned annually from the investment. It can…
Q: f you put up $1,250 in a one-year investment and get back $1,350. What rate is this investment…
A: Time period is 1 year Present Value is $1,250 Future Value is $1,350 To Find: Rate on this…
Q: You have the opportunity to buy a perpetuity that pays $1,000 annually. Your required rate of return…
A: Payments each year = Cash flow = C = $1000 Rate of Interest = r = 13.2% = 0.132
Q: If money is worth 8% compounded quarter ly, determine tne present value of the following: a. An…
A: Discounting is a technique which is used to compute the PV of future cashflows by using an…
Q: Suppose ₱2500 is deposited at the end of each year for the next 5 years in an account paying 7.5%…
A: Annual deposit (P) = P 2500 Annual interest rate (r) = 7.5% Number of annual payments (n) = 5
Q: you are paying into an investment account that pays 8% compounded annually. If you are making…
A: In the given question we require to calculate the future value from the following details: Interest…
Q: An annuity with a cash value of $12,000 pays $2,050 at the beginning of every six months. The…
A: Annuity: An annuity is the series of payments which is received or paid for a certain period of…
Q: What is the payback if an investment’s cost is $45,000 and the after-taxbenefit is $2,000 per year?
A: Investment cost =$45000 After tax benefits = $2000 Payback period formula: Payback period =…
Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment…
A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…
Q: If money is worth 3 3/4% compounded quarterly, find the present value and the amount of an annuity…
A: Annuity means finite no. of payments which are same in size and made in equal intervals for the…
Q: sent value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amou
A: A perpetuity is a series of uniform cash flows over an indefinite period of time.
Q: 1. USING EXCEL, (a) find the value of an investment after 4 years on an ordinary annuity of $5,000…
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Q: In five years, P 20,000 will be bedded to pay for a building renovation. In order to generate this…
A: Here we will have to find the future value of the annuity at the end of the 3rd year and then…
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: If the money invested will earned P200,000 after 10yrs at 16% compounded annually, what is the…
A: Let the principle Amount be X It can be calculated by following formula FV = PV* (1 + r / n)nt…
Q: An individual has $1,000 to invest. He wants to accumulate $3,670 and can earn 8% annual interest on…
A: In this question we need to compute the number of years required to accumulate $3670. Other details…
Q: IF A PERPETUITY IS WORTH P 500,600.00 AND WITH AN INTEREST OF 16.25%, WHAT IS THE ANNUITY? IF MONEY…
A: Since you have asked multiple questions, we will solve the first question for you as per policy.…
Q: A person invests $450 to be collected in 8 yr. Given that the interest rate on the investment is…
A: The future value of the cash flow is the current worth of a cash flow at a certain rate of interest…
Q: A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of…
A: The concept of the time value of money states that the current worth of money is more than its value…
Q: A perpetuity pays $85 per year and costs $2,780. What is the rate of return?
A: In this question we need to compute rate of return on perpetuity from following details : Payment…
Q: An annuity with a cash value of $12,000 pays $880 at the beginning of every three months. The…
A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…
Q: What is the present worth of a perpetual annuity of $2,000 each payable at the end of each year?…
A: Perpetual Annuity is $2,000 Interest Rate (r) is 10% Compounding Period (m) is Quarterly i.e. 4…
Q: use an algebraic approach to solve each problem. A sum of $95,000 is split between two investments,…
A: Introduction: Investments are made by the investors on various alternatives & not on a single…
Q: How much money is needed to make a 10% down payment on a $200,000 property?
A: Money Needed = Amount of Property * Downpayment %
Q: How many regular payments will be made?
A: Present Value: It is the present worth annuity payments, discounted over a period of time at an…
Q: If you put up $73,000 today in exchange for an annual 6.75 percent, 18-year annuity, what will the…
A: The annual cash flow can be computed with the help of present value of annuity.
Q: If money is worth 6% compounded semi- annually, find the present value and the amount of an annuity…
A: The payment which is made at the end of 6 months is known as semi-annual payment. By multiplying…
Q: Compute for the present value of a perpetual investment that would pay Php. 25,000 every year if the…
A: Annual payment (C) = Php 25000 Interest rate (r) = 15%
Q: A perpetuity will pay $800 per year, starting five years after the perpetuity is purchased. What…
A: Perpetuity refers to equalized stream of payments that are either paid or received for indefinite…
Q: An investment with an original value of $11 000 is sold for proceeds of $12 950.00. If the…
A: Investment yield is simply the rate through which an investment increases over the years and it is…
Q: How much is the present value of a perpetuity of P1,000 payable semi-annually if money is worth 5%…
A: Present value of perpetuity is calculated for those securities from which keeps generating cash…
Q: Assume that Kikay Company is to make annual investment of P500,000 for five years. The interest for…
A: Annuity means where regular payment is made at the end of regular period and full amount with…
Q: $360,000 is invested in a perpetuity at an interest rate of 5.2% per annum. a. Find the monthly…
A: Future value of a present value is the value of that amount after taking into account the time value…
Q: A principal of $20,500 generates an income of $3,000 at the end of every 2 years at an effective…
A: Since in this question, we have to calculate the term of the annuity and as per the 3% effective…
Q: How much should you pay for land that has an income of $307/acre, annually, if the interest rate is…
A: Note: Assuming the land is 1 acre, since no information on the land are is given. Present value of a…
Q: suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest…
A: Annual saving (A) = $2700 r = 8% compounded continuously n = 25 years
Q: If a 5-year ordinary annuity has a present value of Php 1,000, and if the interest rate is 10…
A: Annuity means series of payments in a business on which interest is to be received or paid. This can…
Q: Suppose someone his earned income per year is $7000, and the income guarantee, IG, is $5000. And…
A: Disposable income is calculated based on the below-mentioned 4 steps: 1. Determine the earned income…
Q: If you put up $41,000 today in exchange for a 5.1 percent, 15-year annuity, what will the annual…
A: Given,Exchange rate (rate) = 5.1%Time Period (nper) = 15 Years (Annuity)Initial Outflow (pv) =…
An investment costs $4,500 and pays $300 in perpetuity. What is the interest
earned on this investment?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?An investment pays $200 at the end of Year I. $250 at the beginning* of Year 2. $387 at the end of Year 4. and $500 at the beginning of Year 6. If other investments of equal Mk earn 7.5% annually. what will be this investments present value and future value?Which of the following is the approximate internal rate of return for an investment that costs $33,550 and provides a $5,000 annuity for 10 years? A) 5% B) 6% C) 8% D) 10%
- A person buys a piece of property for P100,000 down payment and ten deferred semi-annual payments of P8,000each starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually? What problem is all about? A. Perpetuity B. Annuity due C. DefferedAn investor required 10% return on his money. A property had gross annual income of $110,000, a vancy rate of 4%, and operating expenses of $10,000. What would be the maximum price tht the investor would pay for the property?What is the payback if an investment’s cost is $45,000 and the after-taxbenefit is $2,000 per year?
- The present value of a perpetuity with interest rate of 7.5% is $150,000. What is the annual cash flow amount?A person buys a piece of lot for P 100,000 down payment and 10 deferred semi-annual payments of P 8,000 each, starting three years from now. What is the present value of the investment if the rate of interest is 12% compounded semi-annually?An annuity with a cash value of $12,000 pays $2,050 at the beginning of every six months. The investment earns 6% compounded semi-annually. (a) How many payments will be paid? (b) What is the size of the final annuity payment?
- An investment will pay $150 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and incur a $500 cost at the end of Year 6. If other investments of equal risk earn 6.7% annually, what is this investment’s present value?If you put up $1,250 in a one-year investment and get back $1,350. What rate is this investment paying?use an algebraic approach to solve each problem. A sum of $95,000 is split between two investments, one paying 3% and the other 5%. If the total yearly interest amounted to $3910, how much was invested at 5%?
