If you are expecting to get OMR 32501 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. Select one: O a. 30403.18 O b. All the given choices are not correct Oc. 25097.30 O d. 11557.97 O e. 24885.15
Q: A 5-year ordinary annuity has a present value of $1,000. If the interest rate is 8%, what is the…
A: Annuities make payments at equal intervals of time. Ordinary annuities are the ones that make the…
Q: What effective interest rate per year is equivalent to 19% per year compounded quarterly? Select…
A:
Q: An annuity offers a payment of $5000 at the beginning of every three months for twenty years.…
A: here we determine the amount that would pay for this annuity today as follow by the following method…
Q: A man made a year-end payment of P 100,000 to an account earning 8% annually for 10 years. How much…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: If the interest rate is 3 percent, the present value of $900 received at the end of four years is:…
A: here we calculate the present value and choose the correct option so the calculation of the…
Q: 48. Find the present worth of perpetuity of P10,000 semi annually with an interest rate of 10%…
A: The worth is the ratio of annuity to semiannual. It means that as the annuity is positively related…
Q: A coupon bond that pays interest of $60 annually has a par value of $1.000, matures in 5 years, and…
A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…
Q: What is the value of $600 at 12 percent interest for 7 years compounded semiannually? O A. $1389.82…
A: Given, Principal (P)= $600 Rate of interest (r)= 12% = 0.12 Time (y)= 7 years Compounded…
Q: 6) You have a balance of $7500 on your credit card and you make no further charges. If your APR is…
A: Some credit card companies determine the minimum payment as a portion of your entire statement debt,…
Q: A company is expected to result 3000$ savings annually for the 6 years, if the rate of interest is…
A: Present worth is the present value of future money of cash at a fixed interest rate.
Q: Find the present value of $25,000 quarterly payments payable at the beginning of each quarter.…
A: The present value of a sum of money as opposed to the portion of future value gained by investing in…
Q: Find the uniform annual amount that is equivalent to a uniform gradient series in which the first…
A: We have First year-end payment P1 =6800 Second year-end payment = 6550 Third year-end payment =6300…
Q: If Ann refinances this loan after 5 years, what will be her total cost of refinancing? $27,242.31 O…
A: Present value is the current value of money invested for future at specific interest rate.
Q: Question 6 What is the present worth of 5 payments of S700 if the interest rate is 5% and the first…
A: Present Worth is the value of the sum of money from the future or of the amount that is receivable…
Q: The first-year maintenance cost for a new automobile is estimated to be $100, and it increases at a…
A: Present value is calculated using following formula: P = A(1-(1+g)^n(1+i)^-n/1-g
Q: Cardo Dalisay deposited P1,000, P1,500, and P2,000 at the end of the 2nd year, 3rd year, and 4th…
A: Given Information Cardo Dalisay Deposits At the end of 2nd year=P1000 At the end of 3rd year=P1500…
Q: If you deposit Php 1,000 now, and Php 2,000 two years from now in an account that pays 10% interest,…
A: Given information, Deposit today: Php 1,000 Deposit two years later: Php 2,000 Interest rate: 10%…
Q: A business owner wants to build a reserve fund. To have $50,000 in the fund at the end of 10 years,…
A: Given : Future value=$50000 Number of years=10 Annnual return=5% To find : Annual
Q: If the first payment of $12,000 is received now, what is the present worth of a certain contract,…
A: The present value method is an equivalency method in which a project's cash flows are discounted to…
Q: Which of the following will give the correct net annual premium for a $10,000, 10-year deferred,…
A: We are going to solve for annuity problem for deferred policy.
Q: What is the present equivalent (at EOY 0) of the following cash-flows if the annual interest rate is…
A: The present value of the cash flow is the present worth of cash now that will be received in the…
Q: A person invest P450 to be collected in 8 years. Given that the interest rate on the investment is…
A: The future value of an investment is the value of the given investment at a specified date for a…
Q: Sam is considering investing in a bond with a face value of $20,000. The bond pays an interest of 4%…
A: Answer:- (B) $15,355.40
Q: Stan borrowed $5 000 one year ago. Now he has to repay $5 100. The interest Stan pays is O a. $5 100…
A:
Q: ne present value of a three-year bond with a face value of $10 000, a coupon paymer ercent made at…
A: The bond provides the fixed income at the end of year and on maturity, the fixed interest rate and…
Q: n interest pays 1% interest rate, calculate the nomina ate of interest compounded weekly? O 52% O32%…
A: Nominal Interest rate = Interest Rate x Number of Periods = 1% x 52 = 52%
Q: You buy a share of stock that pays $5 in dividends for the next 5 years and nothing after that. If…
A: The formula for the present value is: P = FV(1 +R)tP: Present ValueFV: Future ValueR: Rate of…
Q: If I OMR is equal to 6.1 USD, then find the value of 1620 OMR value in USD. O a. 265.57 O b. 9882 O…
A: Exchange rate measures the value of one country's currency to another country's currency.
Q: You deposit $2,000 one year and $1000 next year starting year 1 until year 30 with an interest rate…
A: The future value (FV) is important to the financial planners and investors as they could use it to…
Q: Suppose you have S1,000 and plan to purchase a 1-year certificate of deposit (CD) that pays 20%…
A: Rate of interest on 1 year certificate of deposit =20% which is compounded annually. Amount of…
Q: Assume that l2t = 0.15% and that t = 0. If the one-year interest rate is 5% and the two- year…
A: Given Liquidity premium for 2 period bond at time t (l2t)= 0.15% One year interest rate at today's…
Q: Sixty monthly deposits are made into an account paying 12% nominal interest compounded monthly. If…
A: Hi! thankyou for the question but as per the guidelines we answer only one question at once. Kindly…
Q: What is the future value of $2000 per year for 5 years invested at 10%? * O a. $3,221. O b. $12,210.…
A: Using an expected growth rate, future value (FV) projects the worth of a current asset into the…
Q: Suppose you net investment at time t (measured in years) is given (in pounds) by I(t) = 500 – 200…
A: Net investment refers to the difference between the amount of money spent on capital assets and the…
Q: How much should be put in an investment with a 10% effective annual rate today to ?have $10,000 in…
A: The investment is undertaken in order to earn a benefit on the principal amount in the form of…
Q: How long does it take for $8,000 to become $12,500 when the interest rate is 8% per year. (ABET,…
A:
Q: 3 Given the following cash flows, find the value of B such that the present worth is zero. Assume…
A:
Q: Adam, a farmer, wants to buy a new equipment in three years from now. He expects that the price of…
A: Future Value(FV)=$15,000 Rate of interest (i)=5%=0.05 Years(n)=3 Present Value=Future…
Q: You deposit $700 in your savings account for a year. By the end of the year, the value of your…
A: Definition: Simple interest is a speedy and simple technique for computing the interest charge on an…
Q: A small business with an initial outlay of $ 12,000 yields $ 10,000 during the first year of its…
A: Given the initial investment = $12000 First year income, A = $10000 Increase in yield, G = $1000…
Q: If you deposit 3,000 SR in a saving account now. What would be theo difforence of the compounded and…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Assume that ly = 0.50% and that lt = 0. If the one-year interest rate is 5% and the %3D two-year…
A: Given information Liquidity premium on a 2-year bond l2t=0.50% One year interest rate it=5% and two…
Q: If you borrow $4,300 to buy a car at 9% per year compounded monthly, to be repaid over the next six…
A: Given Information P = $4300Rate (r) = 9% per year = 9/12 = 0.75% Per month r =…
Q: What is the current net single premium value of the 4-year periodic life annuity with increasing…
A: Premium is increasing by 10 TL.
Q: An engineer planning for her retirement will deposit 10% of her salary each year into a stock found.…
A: Given Salary - Increases 5% every year. So start with $120,000 and then multiply it by 5% for each…
Q: Fatma is quoted a nominal interest rate of 9.15% per annum compounded every four months on her…
A: Interest refers to the amount paid in excess of the principal amount by the borrower to the lender.…
Q: Consider the following sequence of deposits & withdrawals over a period of 4 years. If you earn 10%…
A: Economic equivalence is a fundamental concept that underpins engineering economy computations.…
Q: Suppose a person wants to obtain a home equity loan of $18,500 for remodeling. The interest rate is…
A: Given that, Home equity loan =$18,500 Interest rate =8.5% compounded monthly Number of years =5 To…
Q: How much must you invest now at an interest rate of 8.5% per year compounded annually to accumulate…
A: Here, we will take A(amount) as 200,000 and r as 8.5% with t as 45 years and put these values into…
Q: Assume that l2t = 0.15% and that l1t = 0. If the one-year interest rate is 5% and the two-year…
A: We have l2t=0.15%, l1t=0it=5%, i2t=5.75% Here it is today's interest rate on one period bond and…
Step by step
Solved in 2 steps
- Which of the following investment options willmaximize your future wealth at the end of 18 years?Assume any funds that remain invested will earn anominal rate of 12% compounded monthly.(a) Deposit $8,000 now.(b) Deposit $120 at the end of each month for thefirst 12 years.(c) Deposit $105 at the end of each month for 18years.(d) Deposit a lump sum in the amount of $35,000 atthe end of year 12.Please no written by hand and no emage You owe UJ R1 000 due in three years from now and R8 000 due in five years from now. He wishes to reschedule his debt so as to pay two sums on different dates, one, say X, in one year from now, and the other, which is twice as much (ie 2X), five years later. UJ agrees, provided that the interest rate is 18% per annum, compounded quarterly. What are your payments?You plan to retire in 15 years. After retirement you will need $20,000 per yearfor 20 years. If interest remains at 8% compounded annually, how much shouldyou deposit each year until retirement? (Note that you will make a total of 15 endof-year deposits, and your first withdrawal will be made at the end of 16th year.)(a) $13,091 (b) $7,811(c) $6,993 (d) $7,232
- ▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $enter your response here. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $enter your response here. (Round your response to the neareast two decimal place)What is the current net single premium value of the 4-year periodic life annuity with increasing payments for a 30-year-old individual: 30 TL per month for the first year, 40 TL per month for the second year, 50 TL per month for the third year and 60 TL per month for the fourth year? please dont use excel. answer with detail.no discount rateJack Rabbit has saved $10,000 annually for the last 35 years in an account eaming 8%. If Jack estimates that he will live for an additional 25 years, how much would he be able to start withdrawing annually for his retirement ( 8% interest)? The answer should be one of these $120,139 $177,567 $161,424 $145,282
- Find the present worth today in real value corresponding to the cur- rent values shown below for a 4 percent ination rate and a 4 percent interest rate. a. $400 three years from now b. $400 three years ago c. $10 next year d. $350 983 in 10 years from now e. £1 one thousand years ago the answer is 292 f. $1 000 000 000 three hundred years from nowSuppose that you purchase a 2 year coupon bond at the time it is issued for $1100. The face value of the bond is $1000, with annual coupon payments of $80. a. What is the bond’s “coupon rate”? b. What is the bond’s “current yield”? c. What is the bond’s (nominal) “yield to maturity”? d. If you hold the bond for 1 year and sell it for $1035 (after collecting the first coupon payment), what is your “holding period rate of return”? Please answer all part otherwise Dounvote1. Given the cash flow diagram as shown, if interest is 5%, determine the equivalenttotal present and accumulated amount. 2. How much do you need to deposit today into an account that pays 3% per year sothat you can make 10 equal annual withdrawals of P1000, with the first withdrawalbeing made seven years from now? 3. Four-year lease agreement requires payments of P10000 at the beginning of everyyear. If the interest rate is 6% compounded monthly, what is the cash value of thelease?
- Pls solve for the ordinary annuity of the following: Joe deposits $22,000 at the end of each year for 7 years, in an account paying 6 % compounded annually, how much will he have on deposit after 7 years? Ans: $184,664.43 Napoleon deposits $1,200 at the end of each quarter for 10 years, in an account paying 8 % compounded quarterly, how much will he have on deposit after 10 years? Ans: $72,482.38 Jose wants to retire in twenty years and for this purpose he is depositing $200 at the end of each month in a sinking fund that pays 7.2% compounded monthly. If he will be doing this for twenty years, then how much money will be there for him when he retires? Ans: $106,752.47bond valuation An investor has two nonds in her portfolio, bond C and bond Z. each bond maturres in 4 years has a face value of 1000, and has a yield to maturity of 9.6% bond C pays a 10% annual coupon, while bond Z is a zeo coupon bond . b- assuming that the yield to maturity of each bond remains at9.6% over the next 4 years, calculate the price of the bonds at each of the following years to maturity year 4,3,2,1,0 b- plot the time path of price for each bondCarol is applying for a mortgage She has a monthly gross income of $4800. The home she would like to buy has monthly payments for a mortgage of $710, a property tax of $240, and a hazard insurance premium of $145. What is her front-end mortgage qualification ratio? 0.23% O 31% O 29% O26%
