Problem 9-30 (Algo) Payments required [LO4]You need $24,756 at the end of 8 years, and your only investment outlet is an 9 percent long-term certificate of deposit (compoundedannually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B andAppendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods.a. What single payment could be made at the beginning of the first year to achieve this objective?Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places.Single payment madeb. What amount could you pay at the end of each year annually for 8 years to achieve this same objective?Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places.Amount to be paid

yearly payment refers to an amount that is being paid for the repayment of a loan amount or the…

Problem 9-30 (Algo) Payments required [LO4] You need $24,756 at the end of 8 years, and your only investment outlet is an 9 percent long-term certificate of deposit (com annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. ⚫. What single payment could be made at the beginning of the first year to achieve this objective? Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Single payment made b. What amount could you pay at the end of each year annually for 8 years to achieve this same objective? Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Amount to be paid

Problem 9-30 (Algo) Payments required [LO4] You need $24,756 at the end of 8 years, and your only investment outlet is an 9 percent long-term certificate of deposit (com annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. Use Appendix B and Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. ⚫. What single payment could be made at the beginning of the first year to achieve this objective? Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Single payment made b. What amount could you pay at the end of each year annually for 8 years to achieve this same objective? Note: Do not round Intermediate calculations. Round your final answer to 2 decimal places. Amount to be paid

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter12: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 17P: EQUIVALENT ANNUAL ANNUITY A firm has two mutually exclusive investment projects to evaluate; both...

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i will 10 upvotes urgent Suppose your firm is seeking an eight-year, amortizing $750,000 loan with annual payments and your bank is offering you the choice between a $795,000 loan with a $45,000 compensating balance and a $750,000 loan without a compensating balance. The interest rate on the $750,000 loan is 8.5 percent. How low would the interest rate on the loan with the compensating balance have to be for you to choose it?(Do not round intermediate calculations and round your final answer to 2 decimal places.) Interest rate%
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