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Future Value of Annuity:
- It represents the future worth of the present annuity cash flow stream and is computed by compounding these cash flow streams by an appropriate interest rate.
Information Provided:
Annuity payment = $105,000
Interest rate = 6% compounded annually
No. of payments = 10
Step by step
Solved in 3 steps
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- 39 Identify the correct formula to calculate the payment for a loan, where the rate is 6%, the loan amount is $2,000, and payments will be made monthly for six years. =PMT(6,6*12,2000) =PMT(.06/12,6*12,-2000) once=1/1b1435-b60f-40fb-ad57-d89084c2075a&launchCode=qe8mtdEeV5pWjPP2nq... =PMT(.06,6*12,-2000) =PMT(.06,6*12,2000)Q5) . As winner of horse race competition, you can choose one of the following prizes: 1. $100,000 now. 2. $180,000 at the end of five years. 3. $19,000 for each of 10 years. If the interest rate is 12%, which is the most valuable prize based on the present value?Need an accurate answer on this! Sprint Inc. expects the following: UCFBT=$ 10 million in perpetuity from the end of year 1. Debt= $ 20 million. Rb =5% Tax rate is 50% R0 =10% Debt is fully amortized over 3 years in three equal payments. Find the value of Sprints’ equity today. Question content area bottom Part 1 Sprints Equity today is $ million. (Round to two decimals) Use 99 if the answer is indeterminate
- H5. 1.Kenneth's retirement fund has an accumulated amount of $50,000. If it has been earning interest at 5.14% compounded monthly for the past 23 years, calculate the size of the equal payments that he deposited at the beginning of every 3 months. $0.00 2.Morgan leased equipment worth $60,000 for 7 years. If the cost of borrowing is 4.66% compounded semi-annually, calculate the size of the lease payment that is required to be made at the beginning of each half-year.SHOW COMPLETE AND ORGANIZED SOLUTION. PLEASE ANSWER THE 2 QUESTIONS. THANK YOU2)If you are to invest your money, which is a better option: 12% compounded monthly, 12.20% compounded quarterly, 12.35% compounded semi-annually or 12.5% compounded annually?3) Determine the ordinary and exact simple interest on P60,000.00 for the period from January 16 to November 26, 2008 if the rate of interest is 14%EQUIVALENT ANNUAL ANNUITY Faleye Consulting is deciding which of two computer systems to purchase. It can purchase state-of-the-art equipment (System A) for 21,000, which will generate cash flows of 6,000 at the end of each of the next 6 years. Alternatively, the company can spend 11,000 for equipment that can be used for 3 years and will generate cash flows of 6,000 at the end of each year (System B). If the company's WACC Is 10% and both "projects" can be repeated indefinitely, which system should be chosen, and what is its EAA?