ANNUITY. If P10,000 is deposited each year for 9 years, how much annuity can a person get SEMI-ANNUALLY from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly.

ANNUITY. If P10,000 is deposited each year for 9 years, how much annuity can a person get SEMI-ANNUALLY from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

See similar textbooks

Related questions

Q: al trade and capital flows between U.S and Italy. U.S. exports soft drinks to France and imports…

A: There are international trades between the countries but each government try to protect the business…

Q: explain Small-firm Effect , Price/Earnings Effect, and January Effect These anomalies have…

A: CAPM-It explains the relationship between the expected return, non-diversifiable risk and the…

Q: 0 million shares and 200,000 bonds outstanding at par value $15,000. In addition, it has $500…

A: Cost of capital would be the weighted average cost of capital of equity, bond and short term debt…

Q: Stock A has expected return of 15% and standard deviation (s.d.) 20%. Stock B has expected return…

A: Risk premium of market portfolio = RPA*wA + RPB*wB where ; RP = risk premium w= weights RP =…

Q: Blues, Inc., is a itional corporation (MNC) located in the lues would like to estimate its weighted…

A: Weighted average cost of capital is weighted considering the weight of bond and weight of equity of…

Q: 3. The data below describe a three-stock financial market that satisfies the single-index model:…

A: We will apply the required formula to calculate the required output. Return can be calculated by…

Q: Explain Stakeholder Theory. Discuss the roles play by the board of directors in the application of…

A: Stakeholders are people that are directly related to the firm. These include shareholders,…

Q: Given that the NPV per share of the reinvestment of the retained earnings next year for a firm is…

A: Here, NPV per Share is $2.50 Growth Rate is 5% Required Return is 12%

Q: You purchased an industrial oven five years ago for $80,000. O&M costs were $20,000 for this year…

A: Economic Life of Asset: It is the timeframe during which it stays valuable to its proprietor.

Q: Springfield mogul Montgomery Burns, age 75, wants to retire at age 100 so he can steal candy…

A: Here,

Q: Signature Corporation, which is currently operating at full capacity, has sales of $75,0 $4,500,…

A: External financing are needed to fund the increase in sales so company has to plan the for that…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Financing programs serves two parties namely consumer and business. The cost which is levied on…

Q: I need to see the work on this for it to make sense to me, can you show your work please? (The…

A: Monthly Payment = $900 Interest rate = 6% Loan term = 30 years Compounding time = 12 (12 times in a…

Q: company currently pays a dividend of $1.6 per share (D0 = $1.6). It is estimated that the company's…

A: Price of stock can be calculated as present value of dividend assuming variable growth rate of…

Q: What is the essence of sound financial management in an organisation.

A: Financial management is one of very important for any organisation and achieve the objectives of…

Q: Problem 1. Jane McDonald, a financial analyst for Carroll Company, has prepared the following sales…

A: A cash budget is a budget prepared to know the cash receipts, payments, and ending cash balance for…

Q: (Present value of annuities and complex cash flows) You are given three investment alternatives to…

A: As per Bartleby Honor Code, the expert is required only to solve the parts of question, which are…

Q: You want to make an investment of $2,000,000 in new equipment which is expected to generate $230,000…

A: The payback period is the time to recover the cost of investment.

Q: Q2- Calculate the future worth and draw cash flow diagram as shown - P=3232 - F=? - 1=8% - Y=3

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: ) Preferred stock valuation Segwick Manufacturing has an outstanding preferred stock issue with a…

A: The question is related to coat of capital. The dividend on preferred stock is calculated with the…

Q: Not use excel Q)What is the depreciation charge of an equipment purchased four years ago for…

A: Depreciation is charged on asset. It is charged due to wear and tear of asset, obsolesce, new…

Q: Part 1 (Present value of a growing perpetuity) What is the present value of a perpetual stream of…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: ature in six years, and interest is paid semi-annually on June 30 and December 31. The bonds were…

A: The bond will mature on the maturity date, and the issuing company would pay the debt holder the…

Q: in the formula i am confused on the Interest RateCompounding PeriodsYears and how that translates…

A: Effective interest rate is the annual interest rate that is adjusted for all compounding in a year.…

Q: Sanity Check 1: Valuing Bond Issue ABS-CBN Corporation has issued bonds with coupon rate of 8%,…

A: Calculation of the present value of bonds, their duration, and convexity is known as the valuation…

Q: Tokyo Corporation purchases P1,500 in raw material each month to support sales of P2,500 that occur…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Calvin Johnson has a $ 5,000 debt balance on his Visa card that charges 15.7 percent APR…

A: Here,

Q: Suppose that the interest rate is 7 percent on euro-denominated assets of a one year maturity and 5…

A: First, we will take the spot rate then we will calculate the new exchange rate after taking…

Q: Use the FV formula for an ordinary annuity to calculate the future value of investing $507 a month…

A: Future Value of Ordinary Annuity refers to the concept which dictates the compounded value of a sum…

Q: Suppose a company in the E-commerce industry is expected to pay a dividend of $0.28 per share wit…

A: Present value of growth opportunity is present value of growth opportunity considering interest and…

Q: Question 2 The owner of an apartment building can rent all 60 suites (is) if $120 per month is…

A: At present 60 suites can be given for rent for $120 per month for each suite. And that will be…

Q: The principle of gearing 2. Why debt is cheaper than equity 3. What the effect will be on the risk…

A: Gearing is the debt-to-equity relationship or ratio of a firm. Gearing indicates how much of a…

Q: Identify and describe the types of financial documents Checkers would have reported in its annual…

A: Financial documents are also known as financial statements and financial statements are used for…

Q: ancial statements for Smolira Golf Corporation follow. SMOLIRA GOLF CORPORATION 2020 and…

A: Corporate valuation is the process of assessing the worth of a company entity in the realm of…

Q: The following data were taken from the financial statements of Tokyo Corporation: Annual Sales -…

A: Inventory is part of current assets as it can be converted into cash in a short time period.…

Q: Marketable securities are liquid financial instruments that can be quickly converted into cash at a…

A: Cash and cash equivalents are the most liquid current asset items included in quick assets, while…

Q: A firm has a capital budget of $100 which must be spent on one of two projects, each requiring a…

A: Given: Year Particulars Amount Amount 0 Capital budgeting -$100.00 -$100.00 1 Yields $120.00…

Q: Hello! I have a financial problem that I am having issues finding the compounding formula for. The…

A: Compounding refers to the practice of providing interest in which interest is periodically added to…

Q: I need to see the equation used to calculate this for it to make sense to me. Can you please show…

A: A mortgage is a loan for a specific amount of money, and mortgage payments are the repayments of…

Q: You would like to have $57,000 in 14 years. To accumulate this amount, you plan to deposit an…

A: Here, Required Amount is $57,000 Time Period is 14 years Interest Rate is 6%

Q: Two payments of $12,000 and & 3,400 are due in 1 year and 2 years, respectively. Calculate the two…

A: Discounting is a technique to compute present value (PV) of future cashflows by considering…

Q: A retrofitted space-heating system is being considered for a small office building. The system can…

A: MARR = 15% Year Cash Flow 0 -110,000.00 1 30,070.00 2 30,070.00 3 30,070.00 4…

Q: Explain the following 1. The principle of gearing 2. Why debt is cheaper than equity 3. What the…

A: There are a lot of ways to finance the business. The most commonly used financing options are debt…

Q: The owner of Supreme Fitness has requested your assistance as financial manager in advising on the…

A: A financial manager is someone who is responsible for all of an organization's main financial…

Q: Your company currently has an equity beta of 1.2, risk-free debt, and a constant D/E ratio of 0.20.…

A: Here, Equity Beta is 1.2 Debt is Risk Free D/E Ratio is 0.20 FCF in one year time is $20 million…

Q: The amount you will have at the end of 30 years will be $ (Round to the nearest dollar.)

A: Future Value of Annuity: It represents the future worth of the present annuity stream of cash flow.…

Q: corporation,dividend,limited liability,over-the counter market,stock exchange and stock market index

A: In finance we often hear the words corporation, dividends, limited liability etc. These are all…

Q: Payments of $1,350 in 1 year and another $2,100 in 5 years to settle a loan are to be rescheduled…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: The 14 year $1000 par bond pays 7 percent interest annually. Market price $945 What is the bond…

A: Par value = $1000 Coupon rate = 7% Coupon amount = 1000*0.07 = $70 Years to maturity = 14 Years Bond…

Q: the next year and you ar, how much more will you have when you retire if you wait one year to make…

A: Future Value: It represents the future worth of the present amount and is estimated by the product…

Question

ANNUITY. If P10,000 is deposited each year for 9 years, how much annuity can a person get SEMI-ANNUALLY from the bank for 8 years starting 1 year after the 9^th deposit is made. Cost of money is 14% compounded quarterly.

- Pls don't use excel

-pls provide cash flow diagram thanks

Video Video

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 with 1 images

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

You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.
You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
Cost of Bank Loan Mary Jones recently obtained an equipment loan from a local bank. The loan is for 15,000 with a nominal interest rate of 11%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?
Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?
Refer to the present value table information on the previous page. What amount should Brett have in his bank account today, before withdrawal, if he needs 2,000 each year for 4 years, with the first withdrawal to be made today and each subsequent withdrawal at 1-year intervals? (Brett is to have exactly a zero balance in his bank account after the fourth withdrawal.) a. 2,000 + (2,000 0.926) + (2,000 0. 857) + (2,000 0.794) b. 2,0000.7354 c. (2,000 0.926) + (2,000 0.857) + (2,000 0.794) + (2,000 0.735) d. 2,0000.9264
(Please draw cashflow diagram) If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly.
If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly. please show the cash flow diagram
Provide step by step and manual solution including diagram. If P8,000 is deposited in the bank each year for 10 years, how much annuity can aperson get annually from the bank every year for 6 years starting 1 year after the 10th deposit is made. cost of money is 12%.
If P10,000 is deposited each year for 9 years, how much annuity can a person get semi-annually from the bank for 8 years starting 1 year after the 9th deposit is made. Cost of money is 14% compounded quarterly. Please give me complete/detailed solutions and givens. also, show cash flows diagram (inflow and outflow). ----the picture below is an example of cash flow diagram.