Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $90,000 seven years from now at an interest rate of 6%. 2. An agreement made on February 1, 2019, to make three separate payments of $20,000 on February 1 of 2020, 2021, and 2022. The annual interest rate is 10%.

Compute the amount that can be borrowed under each of the following circumstances: (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places.) 1. A promise to repay $90,000 seven years from now at an interest rate of 6%. 2. An agreement made on February 1, 2019, to make three separate payments of $20,000 on February 1 of 2020, 2021, and 2022. The annual interest rate is 10%.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Write the 4 Formulas for Uniform Annuity Series 1 Find F/A2 Find P/A3 Find A/P4 Fina A/F5 P (Present Value) for Perpetuity
Compound Interest In Exercises 71 and 72, youinvest $2500 in an account at interest rate r, compoundedcontinuously. Find the time required for the amount to(a) double and (b) triple.71. r = 0.025 72. r = 0.0375
please solve it mannualy do not use excel Assignment Problem 1(Page 132, question 22).An annuity consists of 40 payments of$300 each made at intervals of 3 months. Interest is atj1= 4.5%. Determine the value ofthis annuity at each of the following times:a. 3 months before the time of the first payments;b. at the time of the last payments;c. at the time of the first payment;d. 3 months after the last payment;e. 4 years and 3 months before the first payment.
If EBIT=6,000; interest expense=500, t=30%, and Ks=10%, then the value of S is equal to: a) 60,000 b) 55,000 c) 38,500 d) 48,500
Not use excel Q)Complete the ordinary annuity as an annuity due (future value) for the following. Do not round intermediate calculations. Round your answer to the nearest cent. Amount of payment $4,900 Payment payable: annually Years: 14 Interest rate: 4% Annuity due: ?
ANSWERS: NPW= 220,148.69 NFW= 442,797.66 AW= 65,673.78 PI= 1.44 IRR i%= 31.39% ERR i%= 23.71% PAYBACK Simple= 2.5 years and Discounted= between 3&4 years B/C Conventional= 1.44 and Modified= 1.44
Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $54,000 every 6 months for 3 years, starting at the beginning of each 6 month period, what is its present value? Group of answer choices $279,396 $291,703 $250,193 $273,380
Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $324,000 at the end of 3 years, what is its present value? Group of answer choices $279,396 $291,703 $273,380 $250,193
Use the table below to answer the following questions: Present Value of 1 Factor Present Value of an Annuity of 1 Factor Period 1/2 Yr Full-Yr 1/2 Yr Full-Yr 1 0.9578 0.9174 0.9578 0.9174 2 0.9174 0.8417 1.8753 1.7591 3 0.8787 0.7722 2.7540 2.5313 4 0.8417 0.7084 3.5957 3.2397 5 0.8062 0.6499 4.4019 3.8897 6 0.7722 0.5963 5.1740 4.4859 Assumption: Required annual effective rate (EPR) of return is 9%. If an investment pays you $54,000 every 6 months for 3 years, what is its present value? $279,396 $250,193 $273,380 $291,703
Answer nunbers 2,3,4 COMPUTE FOR ITS ORDINARY ANNUITY Show the solution
[2P2] Directions: Determine the kind of annuity used in the following situations. Then, solve the problem. Show complete (Handwritten or typed, not excel) solutions. What equal payments at the beginning of each 2 months for 4 years will discharge a debt of P180,000 due now if the interest rate is 18.48% compounded every 2 months? a. Kind of annuity: b. Computation:
FIND P AND A End of time (year) Payment1 8,0002 7,0003 6,0004 5,000i= 15%