Jacqueline invested the profit of her business in an investment fund that was earning 2.50% compounded monthly. She began withdrawing $2,000 from this fund every 6 months, with the first withdrawal in 5 years. If the money in the fund lasted for the next 6 years, how much money did she initially invest in the fund?

Q: starting 1 year from today, you will get 20 annual payments of $1,000,000. But to get your money…

A: a) Given Annual Payment "PMT" =$1000000 Inflation rate "r" = 10% Number of payment "n" = 20

Q: 9. Jenny took out a loan of X from the bank today. She has drawn a timeline for the loan and all the…

A: The $500 annual payment is in the form of an annuity. Hence we will have to find the present value…

Q: urchased a house for $475,000. He made a downpayment of 20% of the value of the house and received a…

A: The loans are paid by the monthly payments that carry the payment for interest and payment for…

Q: Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return…

A: The rate of return can be calculated as: R= (Maturity amount- Initial investment)/ Initial…

Q: Bond X is a premium bond making semiannual payments. The bond pays a coupon rate of 11 percent, has…

A: Given: Bond X coupon rate =11% Bond X yield to maturity = 9% Bond Y coupon rate =9% Bond Y yield to…

Q: The total value (debt plus equity) of Wilson Dover Inc. is $500 million and the face value of its…

A: Yield on debt can be calculated by using this equation Yield on debt =Coupon debtDebt valuen -1

Q: Carla deposits $1,000 in the bank and the bank is paying a 4% interest rate.  Assuming no other…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: rite a short note on "Profitability Ratios"

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Q: c) Project A and Project B are two mutually exclusive projects with conventional cash flows. The…

A: NPV and IRR are two capital budgeting tools that help to decide on whether the capital project…

Q: Calculate Paulson's WACC using market-value weights. Do not round intermediate calculations. Round…

A: WACC: It is the company's average cost of capital and is calculated by the total of all individual…

Q: the dividend yield and capital gain yield over the first year?

A: Information Provided: Dividend growth rate = 5% Next Dividend = $3.50 Required return = 13%

Q: Assume that a lender offers a 30-year, $147,000 adjustable rate mortgage (ARM) with the following…

A: ARM Loan(Adjustable-Rate Mortgage Loan): It is  a mortgage loan with the financing cost on the note…

Q: It is important to know how to build an amortization schedule when firms (or individuals) take out…

A: Given: Loan amount (P): $60,000 Number of periods (n): 3 years =3*12= 36 months Interest (i): 12%…

Q: FV(Semi.) = $100(1.06)10 = $

A: We need to use future value formula to calculate future value of money invested today. FV=PV(1+i)n…

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A: NPV is a Capital Budgeting techniques which will help in decision making on the basis of future Cash…

Q: ent ,500 Current assets ,950 Fixed assets ,550 561 1,989 Total Balance Sheet $3,450 8,900 $ 12,350…

A: For increase in sales there is need of external finance required to meet the increase in assets and…

Q: ABC bought a piece of land in a highly developing area for a purchase price of P4,000,000. Directly…

A: Purchase Price                  P 40,00,000.00 Cots Incurred Buying                    P…

Q: A company is considering investing in one of two projects for a period of three years. Information…

A:

Q: A landowner who sells the mineral rights to a parcel of land while maintaining surface rights…

A: 1.A mineral right is a property right that may be sold, transferred, or leased in the same way that…

Q: The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new…

A: Initial Investment  $ 40,000.00 MACRS   Year Depreciation 1 33% 2 45% 3 15% 4 7%…

Q: compounded quarterly, what was the loan principal?

A: Information Provided: Years = 20 Monthly payment = $1700 Interest rate = 5.70% compounded quarterly…

Q: Three years ago, you purchased woodworking equipment for your hobby activities and side-line…

A: Depreciation under unit of production can be calculated by dividing cost of assts by number of hours…

Q: Mark's Meals produces frozen meals, which it sells for $9 each. The company uses the FIFO inventory…

A: Absorption Costing and Variable Costing: Absorption Costing is a costing technique that includes…

Q: raw Cash-Flow-Diagram ! The cost of utilities, taxes and maintenance on a home is $3,000 per year.…

A: The present value would be equivalent amount today required which is equivalent to the future cash…

Q: A4) Finance Alpha Grocery’s total cash needs are twice that of Beta Grocery. Would Alpha’s optimal…

A: As per the Baumol model it uses the technique of re-order quantity which is used in inventory…

Q: Find the BEY of a Treasury Strip that you can purchase for settlement on Oct. 24, 2019 at a quoted…

A: Here, Quoted Price is 89 Face Value is 100 Settlement Date is Oct-24,2019 Maturity Date is…

Q: The most recent financial statements for Mandy Company are shown here: Income Statement Balance…

A: Solution:- Internal growth rate means the rate at which the entity will grow in future without…

Q: You lend a friend ​$10,000. for which your friend will repay you ​$27,027 at the end of 5 years.…

A: FV or Future value = PV or Present value * (1+interest rate)^no. of years Interest rate = ((FV or…

Q: Best Corporation is expected to pay $.60 next year and $1.10 the following year and $1.25 each year…

A: Dividend discounting model will be applied for discounting the future dividend in order to find out…

Q: b) Mr Ismi wishes to sell his freehold house in Johor Bharu. The house was let at market rent of…

A: We need to use perpetual annuity formula to calculate price  Minimum price of house =Monthly market…

Q: A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 11% semiannual coupon,…

A: A callable bond is a bond that can be bought back by the issuer before the maturity date. As it…

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A: Portfolio return can be calculated by multiplying assets weight with expected return Portfolio…

Q: b) Project Swan requires an initial investment of $550,000 and is expected to generate the following…

A: Payback period is one of the method used for evaluation of project under capital budgeting. This…

Q: coupon payments will be paid. What is the volatility of your return over this period?

A: Information Provided: Duration = 12 Bond yield = 10% Volatility of yields = 0.2%

Q: Consider two companies, A and B, that can raise funds either at fixed or floating rates, $100…

A: Swap arrangement is that under which two parties are involved which required to same amount of loan…

Q: starting 1 year from today, you will get 20 annual payments of $1,000,000. But to get your money…

A: a) Part a of the question is an example of ordinary annuity. It means when regular payments are made…

Q: An apartment building is generating income of $250000. Maintenance expenses total 40% of this income…

A: Years to purchase means a period in which the value will be recovered from property. It can be…

Q: a) Table below shows the simplified balance sheet information for Jess Elton Enterprise. The debt…

A: WACC is the cost of raising capital from various sources by the company. It is calculated for…

Q: Kermit is considering purchasing a new computer system. The purchase price is $131,870. Kermit will…

A: Net present worth:  The difference between the current value of cash inflows and outflows over a…

Q: bred costs Profit 31,200 23,400 12% 9% a) What percentage improvement is needed in a supply chain…

A: In the percentage of sales method, we express all line items in an income statement as a percentage…

Q: 1. Adrian is a bank manager. A customer Neo has come into the bank. Neo has a mortgage loan with the…

A:

Q: A disadvantage of shares as security is that a) the lender is required to register the certificate…

A: Share as security  A share of equity in an entity, such as the capital stock of a corporation,…

Q: Yohana who is sixty years old retired after working 40 years at Google, therefore BLS classifies…

A: Terms of BLS  are: i) Unemployed-Such people who are available for work but were not employed during…

Q: Explain why Ghana is considered an importer of inflation and discuss possible policies to mitigate…

A: Inflation is referred as the rate, where the commodity prices continue to increase. When an amount…

Q: How much will she have at 70? he expects to live for 20 years if she retires at 65 and for 15 years…

A: *Answer:  a. The amount that she will have at the age of 65 is $423,504.48 Workings:

Q: xplain why the Cedi continues to depreciate against most major international cur

A: Cedi the currency of Ghana depreciated due to many reason some are domestic and some are…

Q: 6. Kate earns 3.5% p.a. effective interest from her savings account. The inflation rate is 5.1% p.a.…

A: The Fisher equation is used to determine the relationship between real and nominal interest rates to…

Q: 2. On January 1, 2022, ABC Corporation entered into a 60-day put option contract for $30,000. Based…

A: A put option: A put option gives its holder the right, but not the obligation to sell the underlying…

Q: Social Security is a “pay-as-you-go” system. How

A: Social security refers to the protection which is provided by society to individuals or households…

Q: The Brown family recently bought a house. The house has a 30 year, $156,000 mortgage with a nominal…

A: Loans are paid by monthly payment that carry the payment of interest and payment for the principal…