If you are expecting to get OMR 56775 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. Select one: a. 43841.70 b. 20190.26 c. All the given choices are not correct d. 43471.10 e. 53110.38

If you are expecting to get OMR 56775 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. Select one: a. 43841.70 b. 20190.26 c. All the given choices are not correct d. 43471.10 e. 53110.38

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...

See similar textbooks

Related questions

Q: What's the future value of P1,200 after 5 years if the appropriate interest rate is 6%, compounded…

A: Compound Interest is the widely used method in finding out interest on an amount. It is a method of…

Q: What is the future value of $850 deposited for one year earning an 10 percent interest rate…

A: Future value of a sum of money refers to the worth of that sum of money on a specific time in the…

Q: What's the future value of $1,654 after 5 years if the appropriate interest rate is 6%, compounded…

A: Present value (PV) = $ 1654 Interest rate = 6% Semi annual interest rate (r) = 6%/2 = 3% Period = 5…

Q: If you are expecting to get OMR 11240 at the end of 9 years; calculate its present value if the…

A: Future Value =OMR 11240 Years =9 Interest Rate =2.24% Monthly Interest Rate(r) =2.24%/12 =…

Q: Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual…

A: Note: The payments start at t = 20, indicating perpetuity payment made at the end of t = 19. This…

Q: If you are expecting to get OMR 60633 at the end of 3 years. Calculate its present value if the…

A: Given information: Future value : OMR 60633 Time period : 3 years Interest : 9%

Q: If you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the…

A: Given:

Q: If you are expecting to get OMR 48918 at the end of 3 years. Calculate its present value if the…

A: Present value of an amount is the discounted value of a future amount at a specified interest rate…

Q: if $875 000 is saved for retirement, what rate of interest, compounded semi-annually, will provide…

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

Q: Suppose an annuity pays $2000 at the end of each 3 month period for 3.5 years at an interest rate of…

A: given, A = $2000 n = 3.5 r = 4% pa but it is compounded quarterly therefore, frequency of…

Q: You are given the following term structure of spot interest rates: Time (in years) Spot Interest…

A: Spot rate: It is the return on a bond that is earned when it is purchased and traded on secondary…

Q: If you are expecting to get OMR 7100 at the end of 17 years. Calculate its present value if the…

A: Given information: Future value : OMR 7100 Time period : 17 years Discount rate :2.5% Compounding :…

Q: If you are expecting to get OMR 4900 at the end of 5 years. Calculate its present value if the…

Q: What is the present value of $100 to be received in 3 years if the annual interest rate is 10% and…

A: Given: Future value =$100 Time = 3 years Interest =10% So, present value =Future value/(1+…

Q: What parameter is this question asking for? What deposit made at the end of each month will…

A: Annuity is the equal periodic cash flows over specific time time period. When the payment is due at…

Q: If you want to be paid from a l13 year ordinary annuity with a guaranteed rate of 3.09% compounded…

A: The annuity refers to the series of payments or receipts that last over a specific period of time.…

Q: If the interest rate is 15%, what is the present value ofa security that pays you $1,100 next year,…

A: Formula for calculating Present Value is as follows PV =Cn1+ rn Where, Cn = Cash flow for period n r…

Q: If you are expecting to get OMR 41661 at the end of 3 years. Calculate its present value if the…

A: Given: Future value =OMR 41661Interest rate =9%4=0.0225No. of periods =3 ×4 =12

Q: if you invest $1,000 today With a compound annual interest rate of 5 %. What is the total amount…

A: Future value of money refers to the value of money on a particular date in the future. In other…

Q: You are given the following term structure of spot interest rates: r1 = 5.00%, r2 = 6.50%. A…

Q: Suppose you wish to have $16,250 in 5 years. Use the present value formula to find how much you…

A: In this question we need to compute the present value and amount of interest.

Q: What is the future value of a $890 annuity payment over six years if interest rates are 10 percent?…

A: Annual payment (P) = $ 890 Annual interest rate (R) = 10% Period (N) = 6 years

Q: • A perpetuity will pay $900 per year, starting five years after the perpetuity is purchased. What…

A: Given, Payment is $900 Interest rate is 11%.

Q: What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded…

A: Present value (PV) = $3100 Period = 17 Years Number of semiannual periods (n) = 17*2 = 34 Interest…

Q: What is the present value of an annuity consisting of payments of $800 every month for 8 years, with…

A: Present value is the current worth of the amount that is deposited or received in some future date…

Q: Given an interest rate of 5.7 percent per year, what is the value at t = 8 of a perpetual stream of…

A: Annual Payment = $4,100Interest Rate = 5.7% Calculation of value of perpetuity:

Q: Given the following information, calculate the rate of return. price = $501.88 time to maturity =…

A: price = $501.88time to maturity = 10 yearsannual payment = $100type = ordinary annuity

Q: you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the…

A: Future value = Present value*((1+interest rate)^time) Formula to calculate present value…

Q: What's the future value of $1,500 after 5 years if the appropriate interest rate is 5.6%, compounded…

A: Future value = Present value * (1+r)^n R is the rate here it will be 5.6/2 = 2.8% per semi annual…

Q: What is the accumulated value after five years of payments of $20000 made at the beginning of each…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: When compounded bi-monthly P15000 becomes P22300 after 5 years. What is the interest rate? NOTE:…

A: Present value is also referred to as the present discounted value. Basically, it is the sum of the…

Q: What is the future value of a $830 annuity payment over six years if interest rates are 10 percent?…

A: Annual payment (P) = $830 Interest rate (r) = 10% Period (n) = 6 Years

Q: d. Calculate the future sum of $1,000, given that it will be held in the bank for 5 years earning an…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: If you are expecting to get OMR 11240 at the end of 9 years; calculate its present value if the…

A: Given Information: OMR = 11,240 Interest rate = 2.24% Computed yearly

Q: What's the future value of $1,225 after 5 years

A: Future value (FV) refers to a method of calculating how much the present value (PV) of an asset or…

Q: What is the future worth of P8500 deposited at the end of every month for 3 years if the interest is…

A: Future value of a present value is the value of that amount after taking into account the time value…

Q: Suppose the interest rate is 9% APR with monthly compounding. Then the present value of an annuity…

A: Present Value of annuity = P* [1-{1/(1+r)^n}] / r where, P= annuity amount r =rate per period i.e.…

Q: If you are expecting to get OMR 10240 at the end of 3 years. Calculate its present value if the…

A: Present value of an investment refers to the sum amount of money that will be required today in…

Q: If you are expecting to get OMR 35743 at the end of 3 years. Calculate its present value if the…

A: Nominal interest rate 9% Compounding Quarterly Effective rate ((1+9%/4)^4)-1) Effective rate…

Q: Find the quarterly payment if the PV of an Annuity is $6250 the Future Value is $9070 after 8 years…

A: PMT is a series of periodic payments like monthly, Quarterly, semi annually and annually.

Q: If you are expecting to get OMR 45847 at the end of 3 years. Calculate its present value if the…

A: Future Value after 3 years = OMR 45847 Interest Rate =9% Years =3 Interest Rate quarterly(r) =9%/4 =…

Q: Which of the following options would you choose assuming an annual compound interest rate of 8%?…

A: A. Alternative 1: Receive $ 100 today. B. Alternative 2: Receive $ 120 in two years. Annual interest…

Q: How much will be the future value of a 5-year ordinary annuity which has annual payments of $200,…

A: The question gives the following information:

Question

If you are expecting to get OMR 56775 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly.

Select one:

a. 43841.70

b. 20190.26

c. All the given choices are not correct

d. 43471.10

e. 53110.38

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

VIEW

Step 2

VIEW

Answer:

VIEW

Step by step

Solved in 3 steps with 2 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

(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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.
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.
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?
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
If you are expecting to get OMR 35743 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly. O a. 27367.46 O b. 27600.77 O c. All the given choices are not correct O d. 33435.92 O e. 12710.88
If you are expecting to get OMR 11240 at the end of 9 years; calculate its present value if the interest rate is 24.2% and is computed yearly? Select one: a. None of the option b. 1909.19 c. 9046.11 d. 1356.38 e. 9064.11
If you are expecting to get OMR 34595 at the end of 3 years. Calculate its present value if the interest rate is 9% and is computed quarterly.
If you are expecting to get OMR 4900 at the end of 5 years. Calculate its present value if the interest rate is 10.5% and is computed semi-annually/half yearly. Select one: a. 8937.49 b. 2937.49 c. None of the options d. 9937.49 e. 3937.49
What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%, compounded monthly? Select one: a. $1,683.36 b. $1,928.86 c. $1,385.27 d. $1,753.51 e. $1,841.18
Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? Group of answer choices $52,821.19 $57,900.83 $58,988.19 $62,527.47 $64,131.50