Answered: How much was initially invested if the…

How much was initially invested if the value of the investment is at ₱200,000 after 3 and a half years and the investment grows by 12.5% compounded quarterly?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14EB: How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one...

See similar textbooks

Related questions

Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year.…

A: The nominal rate of investment can be found using the RATE function in excel. RATE = (NPER, PMT, PV,…

Q: How many years will it take $540 to grow to $11,515.44 if it is invested at 12 percent compounded…

A: In the above question we need to compute the number of years it will take to grow $540 to $11515.44…

Q: A one-year investment yields a return of 15%. The cash returned from the investment, including…

A: We have the following information: A one-year investment yields a return of 15% The cash returned…

Q: If the opportunity cost rate is 8% and is compounded annually, what is the present value of Php…

A: Present value of future value is the equivalent value of money today considering the interest rate…

Q: If $19,000 is invested at 3% compounded monthly, what is the amount after 4 years?

A: FUTURE VALUE is the value of current cashflow at the future date compounded at the specified rate.…

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of…

A: Future value of the investment (F) = Php 180250 r = 10.5% per annum = 2.625% per quarter n = 6 years…

Q: Find the time required for an investment of 5000 dollars to grow to 6300 dollars at an interest rate…

A: 1. Future Value = Present Value * (1 + Interest per Compounding Period)^# of Periods Investment =…

Q: You buy a new piece of equipment for $16,230, and you receive a cash inflow of $2,500 per year for…

A: The internal rate of return (IRR) is the interest rate received for investment with payments and…

Q: what is the payback in this investment, assuming that the savings accrue over the whole year?

A: Payback period refers to the period within which the sum invested by the company in a project will…

Q: The initial cost of an investment is $65,000 and thecost of capital is 10%. The return is $16,000…

A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…

Q: Suppose that $4000 is invested each quarter, for the next 10 years. What is the future worth if the…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: A certain amount of money after a decade is said to be worth Php 12,000.00. If the interest rate…

A: Future Value = 12,000 PHP 1 USD = 49 PHP Future Value in USD = 12,000 / 49 = 244.90 USD N = 10 years…

Q: When will an investment of 4,000.00 double if the effective rate 8% per annum?

A: Solution : given investment P = 4,000 Effective annual rate r = 8% Amount A = 2P We know the…

Q: How much will be the equivalent worth of ₱2M invested today for three years at a commercial rate of…

A: Investment amount (PV) = P 2,000,000 Annual interest rate = 10% Quarterly interest rate (R) = 10%/4…

Q: Find the time required for an investment of 5000 dollars to grow to 6100 dollars at an interest rate…

A: Given Information:PV is $5000 FV is $6100 Rate is 8.8% compounded quarterly

Q: The maintenance cost in year 1 is $23000, increasing by 7% each year. What is the present worth of…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: An investment of P40,000 has a revenue of X pesos at the end of the first and second year. Given a…

A: When net present worth is zero that means present value of cash flow is equal to initial investment…

Q: What single equivalent amount will accumulate from this present investment of P1,387 in 22 years at…

A: Investment amount (P) = P 1,387 Period = 22 Years Number of semi annual periods (n) = 22*2 = 44…

Q: The amount of $122,000 is invested todat at a rate of 8.77% per annum, with monthly compounding,…

A: Time Value of money states that a dollar today is worth more than any time in the future, this is…

Q: How much must be deposited

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: Determine when, to the nearest year, $3,000 invested at 5% per year, compounded daily, will be worth…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A financial investment equal to BRL 100,000.00 allows a withdrawal of BRL 20,000.00 in the first…

A: Investment BRL 1,00,000.00 Withdrawal BRL 20,000.00 Annual growth 2% Time Period 10…

Q: Find the present value of an investment that will have a future value of Php350,000 if it is…

A: Present Value: It is the current value of cash flows or an amount of money that is expected in the…

Q: How long will it take P1,000 to amount to P1,346 if invested at 6% compounded quarterly?*

A: Compound interest is when we invest the interest back and earn even more interest as a result.

Q: The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000…

A: Net present value is the difference between the present value of cash flow and initial investment.

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a…

A: Present value(PV) is Php3,500,000 Future value(FV) is 3,500,000 Time Period is 13 years Compounding…

Q: An investment of $10,000 six years ago has now grown to $20,000. Determine the annual interest rate…

A: Compound Interest is calculated by multiplying the initial principal amount by one plus the annual…

Q: An investment of P100,000 is expected to yield a regular annual net income of P25000 for 10 years.…

A: A benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to summarize the overall…

Q: An investment of $23,500 in new equipment will generate income of $6,500 per year for 10 years. What…

A: PV of cash outflow=$23,500 Income per year=$6,500 Duration(n)=10 years As per the equation of IRR,…

Q: What is the present value if the money become Php158, 900 after 5 years of investment using 11.2%…

A: The present value is the present worth of the amount that will be paid or received in the future.

Q: Determine when, to the nearest year, $3,000 invested at 5% per year, compounded daily, will be worth…

A: Future value of a investment can be calculated by: Future value = Annual payment ×1+ifn×f Where, i =…

Q: An investment costs $465 and is expected to produce cash flows of $100 at the endof each of the next…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: An investment that cost P20,000 will provide a return of 12% compounded quarterly. For how long will…

A: Investment (PV) = P20,000 Interest rate = 12% Effective annual interest rate (r) = [1+(0.12/12)]12-1…

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a…

A: Given: Future Value “FV” = Php5,500,000 Present Value “PV” = Php3,500,000 Number of years = 13…

Q: it is desired to save $20,000 by depositing $800 every 3 months in an investment that pays 8%…

A: Annuity means a set of finite number of payments which are the same in size and made in equal…

Q: What is the net present value of an investment thatcosts $75,000 and has a sa lvage value of…

A: Given information : Initial cost $75,000.00 Salvage value $45,000.00 Annual profit…

Q: How much was initially invested if the value of the investment is at P200,000O after 3 and a half…

A: Present value is referred to as the present worth of the investment amount which is discounted at an…

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: future value of an investment made 5 years ago is P150,000. If the investment offered an annual…

A: Effective rate goes on increasing if the compounding goes on increasing. And effective rate is less…

Q: A sum of money is invested at a rate of 7 percent per year compounded annually. How long it will…

A: Rule 72 refers to the rule which makes it a simple calculation for the person to determine that in…

Q: An investment of $30,000 is made. How long will it take to grow to $45,000 if the interest is a…

A: The investment is the allocation of money in financial instruments, property, etc. to earn the…

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a…

A: Let the quarterly rate = r n = 13 years = 52 quarters Future value (F) = Php 5500000 Present value…

Q: The rate of return on an investment of $1500 that doubles in value over a 4-year period, and…

A: We will use the NPER formula in excel =NPER(rate, pmt,pv,-fv,type) where NPER is the number of…

Q: An investment will have a future value equal to Php180,250 after 6 years. It has a nominal rate of…

A: Time Value of money states that each dollar has earning capacity hence a dollar today is worth more…

Q: An investment costs P465 now and is expected to produce cash flows of P100 at the end of each of the…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Question

How much was initially invested if the value of the investment is at ₱200,000 after 3 and a half years and the investment grows by 12.5% compounded quarterly?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
An investment of 1,000 produces a net cash inflow of 500 in the first year and 750 in the second year. What is the payback period? a. 1.67 years b. 0.50 year c. 2.00 years d. 1.20 years e. Cannot be determined
Towson Industries is considering an investment of $256,950 that is expected to generate returns of $90,000 per year for each of the next four years. What Is the Investments internal rate of return?
How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?
The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a duration of 13 years that is compounded 4 times in a year. What is the nominal rate of the investment?
An investment of $50,000 in R&D results in additional revenue of $28,720 after 5 years and another revenue of $61,892 after 10 years. What is the rate of return on the investment?
An investment of $70,000 yields a net annual income of $15,000 for 6 years. What is the internal rate of return (IRR) for this investment?
1. If the investment is expected to earn revenue of P4,000,000, with cash expenses amounting to P1,500,000 each over its life, What is the payback period in years? 2. If the investment is expected to earn increase revenue by P750,000 annually with cash savings on expenses of P120,000 each over its life, what is the accounting rate of return of this investment?
For how many years must an investment of Php63,000 provide a continuous flow of funds at the rate of Php16,000 per year so that nominal rate of 10% continuously compounded, will be earned?
What is the simple payback period (in years) for an investment of $165,000 if the net annual income is $35,000?
A 2-year investment of $2,000 results in a cash flow of $150 at the end of the first year and another cash flow of $150 at the end of the second year, in addition to the return of the original investment. What is the internal rate of return on the investment?
The future value of an investment made 5 years ago is P150,000. If the investment offered an annual return of 10% compounded monthly, how much was initially invested?