Mr. Joe decides to pay $40,000 annually to the 6 - year capital improvement to the Food Process Department for the purchase of laboratory equipment. His payment would start at the end of year 3 and continue through year 6. Determine the present value of his total payments if the interest rate is 14.2%

Q: An engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

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A: Calculation of Value of Investment: Excel Spreadsheet:

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A: Compounding is a process of reinvestment. In this process the investments and the gains that are…

Q: A housewife bought a brand new washing machine costing P12,000 if paid in cash. However, she can…

A: Present value of annuity due can be used to calculate the periodic payment.

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A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest…

A: Final value is computed in nominal terms as the compounded value of the initial investment. The…

Q: Victoria Industries (VI) plans to accumulate funds for the purchase of a larger manufacturing…

A: Here, Monthly Contribution is $10,000 Time Period is 7 years Interest Rate is 4.5% Compounding…

Q: Mr. White takes a 15-year loan of $50000 to purchase an equipment for his factory. If the interest…

A: For calculation of monthly payment(PMT), we need to use the following formula PMT =PV*i/[1-1/(1+i)n]…

Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…

A: Given, Present Value of annuity = $1,000,000 r =rate per period i.e. 6.7%/2 =3.35% or 0.0335 n = no.…

Q: Mr. Ceballos purchased a statue for Php 2,500. Ten years later, he sold this statue for Php 7,500.…

A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question…

Q: “Sunrise Industries wishes to accumulate funds to provide a retirement annuity for its vice…

A: a. Calculation of Accumulated Savings: Excel Spreadsheet:

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A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: he percentage rounded to two decimal places, of the total payments made the first two years that…

A: Amortization Schedule: It is a schedule consisting of the loan periodic payments, interest…

Q: To benefit the ISU College of Business, Bill Vickers would like to establish a “perpetual”…

A: Future Value (FV)= $210,000 per year Time period (n)= 13 years  Annual return (i)= 4.1 percent…

Q: An employee is entitled to a 10 yearly grant of 25,000 pesos each starting at the end of the…

A: Money discounting is the process of determining the present value of future cash flows. The interest…

Q: Mary Sullivan, capital outlay manager for Waxy Widgets, has been instructed to establish a…

A: Present value is a series of discounted value , that  worth of today that is more than generated in…

Q: You believe that you can set aside $1,200 each year for the next four years, starting immediately,…

A: Given : Interest rate = 4% compounded annually Year Payment 1 1200 2 1200 3 1200 4…

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A: The Equivalent uniform annual cost (EUAC)  is used to convert the cash payments or costs to…

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A: Future value required (FV) = $81000 Interest rate = 16% Quarterly interest rate (r) = 16%/4 = 4%…

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Q: An old man buys a piece of lot for 150,000 down payment and 12 deferred semi-annual payments of 8500…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: A resident will give money to his town to purchase a statue honoring the town founders and will pay…

A: A Perpetuity is a series of payments of fixed amounts and at fixed intervals for an indefinite…

Q: A business man must fund an account for him to pay the maintenance of the building after it shut…

A:

Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he…

A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…

Q: A local retail franchise must buy a new piece of equipment in 6 years that will cost $89,000. The…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

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A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he…

A: Future value required (FV) = Php1,000,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 =…

Q: What is the amount of each​ payment?

A: A stream of equal cash flows paid or received periodically is termed as annuity. Ordinary annuity…

Q: . A civil engineer plans to own a 300 m² lot after 5 years for an estimated cost of 570,000. To…

A: When a number of payments or receipts of equal amount is made at equal intervals of time, it is…

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A: Present Value(PV) is current value of future amount which is computed by discounting amount with…

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A: a) The formula to calculate accumulated value of an annuity is given below: Here, i is interest…

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Q: Mrs. Parker bought a computer set for $32,000 to be paid in equal payments at the end of every 3…

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Q: A wealthy donor wants to establish a scholarship that pays an award of $1,000 in perpetuity at the…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: Sarah Bishop, having become a very successful engineer, wishes to start an endowment at UTM that…

A: Diagram:

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A: Formula: A = P x [ 1 + ( R / N ) ] NT Interest : Interest is a fee charged on the  Borrowed…

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

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A: Present Worth: It is the present value of the sum of the amount discounted at a specific rate of…

Q: Recent sales of some real estate and record profits make it possible for a manufacturer to set aside…

A: Annuity refers to the periodic payments either in the form of deposits or withdrawal that a…

Q: Today, Julie borrowed $5000 to purchase furniture for her new house. She can repay the loan in…

A: Borrowing Amount or Loan Amount = 5000

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A: Given that, Cash outflow each year = $60,000  Number of years = 5 years Total cash outflow = $60,000…

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A: In this question we need to compute the interest rate from following details : Present value of…

Q: Ryan invested 56000 in Koy Rural Bank and Soy Rural Bank. Koy Rural Bank pays 8% interest per year,…

A: formula for interest : interest =principal ×rate×time100

Q: Henry purchased farm machinery and would pay P150,000 at the end of every 6 months for 5 years with…

A: Semi annual payment = P 150,000 Period = 5 Years Number of semi annual payments = 5*2 = 10 Annual…