Consider a fixed-payment security that pays P100 at the end of every year fo the three years. If the rate of discount is 10 percent, the present value of the bond is * P24.87 O P248.69 O P294.10 P1,000

Q: A bank deposit paying simple interest at the rate of 6%/year grew to $1300 in 8 months. Find the pri...

A: The interest calculation made for a loan or investment is ascertained using simple and compounded me...

Q: Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an av...

A: Risk can be compared on the basis of coefficient of variation. Higher the coefficient of variation, ...

Q: You purchased 100 shares in a real estate investment trust for $50 a share. The trust paid the follo...

A: Annualized returns is return earned over the period of single year by holding the investment.

Q: You have found three investment choices for a one-year deposit: 9.1% APR compounded monthly, 9.1% AP...

A: Solution:- Effective Annual Rate (EAR) means the effective rate for a year after effect of all the c...

Q: A firm borrows 2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due...

A: We need to use the concept of time value of money here. We will first have to find the amount at the...

Q: A U.K importer has future payables of DM 20,000,000 in one year. The importer must decide whether to...

A:   Deposit Rate Borrowing rate Sterling 8% 9% DM 6% 7% Spot rate  £ 0.74 =DM1     One y...

Q: Assume that a UK family visits Spain every summer. Last year, the hotel room where they stayed was p...

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thre...

Q: Carla Vista Industries has a three-year bond outstanding that pays a 7.80 percent coupon rate and is...

A: SOLUTION : GIVEN, Face value = $1000 Current Price = $938.05 Coupon rate = 7.80%  Time = 3 years    ...

Q: Kala wants to save money to buy a motorcycle. She invests in an ordinary annuity that earns 4.8% int...

A: Here, Interest rate = 4.8% compounded annually Future value of annuity = $5,000 Time period = 3 year...

Q: What advantage does the fixed charge coverage ratio offer over simply using times interest earned?

A: The fixed-charge coverage ratio (FCCR) assesses a company's ability to cover fixed costs such as deb...

Q: (1) A 5-year auto loan for $20,000 has monthly payments at an 8% nominal annual rate. If the borrowe...

A: Annual percentage rate (APR) refers to the annual interest rate charged to borrowers or investors. A...

Q: You got asked to analyze a 5-year project for your firm. The project produces an annual revenue of $...

A: Initial Investment  $  20,000.00 Annual revenue  $  28,500.00 Labor and materials cost  $    5,0...

Q: Warren Buffett: How Most People Should Invest in 2021  explain the statement given

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Q: To help buy his new townhome, Bill is taking out a s163,000 mortgage loan for 30 years at 3.4% annua...

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Q: A couple plans to purchase a vacation home. The bank requires a 10% down payment on the s210,000 vac...

A: We need to use PMT equation to calculate monthly payment. The equation is PMT =P*i1-1(1+i)n where  P...

Q: . What is the present worth of 4100 deposited at the end of every three months for 5years if the int...

A: The future value is the amount deposited and interest accumulated over the period of time. The prese...

Q: how much is in the account at the end of 45 years? (Round your answer to the nearest cent.)

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

Q: over/undervalued by ___ compared to the group average.

A: Group average = (5+5.25+4.80+4.90+5.30)/5  = 25.25/5  = 5.05  

Q: ose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded ...

A: The today value will be the present value of future value considering the discount rate and period o...

Q: The following statements relate to long-term financing. Which is true? a. The risk on any type of e...

A: Long term financing Long term financing is a financing that has the maturity more than a year.

Q: Tran has $225.43 left in his FSA. If he does not use the money within the next two months, he will l...

A: FSA (Flexible spending account): A Flexible spending Account could be a special account you place ca...

Q: Taylor and Charlie currently live in New Orleans. Taylor is currently making $60,000 per year, and C...

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

Q: A car lease of $12613 is to be repaid by making payments at the beginning of each month for 3 years....

A: Car Lease Amount = $12,613 Time Period = 3 Years Interest Rate = 3%

Q: In the equation the original amount for the investment is $840,000. Why in the first step of the sol...

A: Investment = $840,000 Profit = 1,500,000  

Q: (a) The amaunt af Interest included in the September payment (round your answer to the nearest cent)...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: You can buy a carton of three 32-ounce bottles of shower cleaner on sale for $5.00. The 64-ounce "re...

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Q: a. What price would you be willing to pay for a share of Acap stock today. you planned to hold the s...

A: Dividend discount model refers to a stock valuation model which is used by the company for estimatin...

Q: In order to pay a baseball uniforms , a school takes out a simple interest loan forPhp20,000 for 7 m...

A: Simple Interest: It is the easiest and simplest way to compute the interest charge on a loan. It is...

Q: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of 5...

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

Q: Over the past 10 years, the dividends of Party Time Inc. have grown at an annual rate of 16 percent....

A: Current (D0) dividend  $                  2.70 D(1) 3 Growth rate for 2 Years 13% Growth rate ...

Q: certificates of deposit (CDs), earn interest compounded each day or even more frequently, such as ev...

A: Future value includes the amount deposited and the compound interest accumulated over the period of ...

Q: 4. LSP Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing ...

A: Based on the information available we will calculate the net income, taxes, and other costs.

Q: What is the future value of $2000 per year for 5 years invested at 10%?

A: Annual value (A) = $2000 n = 5 years r = 10% We need to find the future value of annuity.  

Q: 4. TSE company sells an old piece of equipment for $15,000 cash. At the same moment, it buys a new t...

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Q: Compute the cost of equity for this project   Compute the relevant cost of debt for this project.  ...

A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all th...

Q: ou have decided to buy a car. The car cost RM 50 Q00e You are taking a loan from a ban vith the inte...

A: Loans are paid by the monthly payments that carry the payment for interest and payment for the princ...

Q: ) The time is progressed by using the event count method.

A: Event count method is the process of measure the no. Of discrete events over period of time.

Q: ategies that a hospital must do to achieve financ

A: Financial health is necessary for any organization and this is very important to maintain and grow f...

Q: 7. LSP Corporation has forecasted sales of $120,000, operating expenses excluding depreciation and a...

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Q: Mrs. Lazada is convince to invest to an insurance company with 4% interest compounded annually and t...

A:

Q: sers of ratios into short-term lenders, long-term lenders, and stockholders, which ratios would each...

A: Step 1   Ratios may be quite useful when deciding whether or not to invest in a company. Retail inve...

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A: Initial investment (P) =$19,700 Maturity value(S)=$20,000 since maturity period is 26 week= 26*7=182...

Q: You just purchased a share of SPCC for ​$95. You expect to receive a dividend of ​$7 in one year. If...

A: Total return includes dividend yield and capital gain yield

Q: nds: a zero-coupon bond with a maturity of six years, and a perpetual b 8%. How many percent of your...

A: Duration of perpetuity bond = (1+yield)/yield = (1+8%)/8% = 13.5  

Q: A company purchase a piece of manutacturing equipment for rental purposes. The expected annual incom...

A: The current value of a projected amount of money or stream of cash flows with a predetermined rate o...

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A: Financial KPIs (key performance indicators) are metric entities used to track, measure, and analyze ...

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Q: Assume that the interest rate on 1 year t-bill in Canada is .60% and the interest rate for similar p...

A: Time Period = 1 Year Interest Rate of Canada = 0.60% Interest Rate of US = 1%

Q: r. Reyes borrows P600, e loan in 15 equal annual payments. How much of the original principal is sti...

A: Loans are paid by the equal annual installments these annual installment carry the payment for the p...

Q: XYZ inc. considers an investment project that requires $200,000 in new equipment and $30,000 in extr...

A: Cash flow for a project is calculated after adjusting all the operating expenses and adding back the...

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.