Question 5 options: The town of Walkerville borrows $5,000,000 at 7% c.s.a. interest payable semi-annually, full principal due and payable in 10 years. A sinking fund is set up with semi-annual deposits made estimated to earn 4%c.s.a b) Find the annual expense (SF deposit and interest)

Q: Eric borrowed P3, 500, 000 at 8% for 10 years. The loan stipulated that the following payments have…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: 3) Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded…

A: PMT = 2500 Semi annual ; n= 15*2= 30 interest (r)= 4%/2= 2%

Q: Present Value of an Annuity On January 1, you win $3,440,000 in the state lottery. The $3,440,000…

A: Definition: Present Value: The value of today’s amount to be paid or received in the future at a…

Q: Sanders Co. is planning to finance an expansion of its operations by borrowing $52,100. City Bank…

A: Interest for a period is based on the amount of principal due at the beginning of the period.

Q: On January 1, you win $3,440,000 in the state lottery. The $3,440,000 prize will be paid in equal…

A: Present value of winnings = Annual installments  amounts x Present value factor (5%, 8 years)

Q: b. A manufacturing company intends to purchase a new equipment costing GH¢ 2m. The money required to…

A: The sinking fund refers to the fund arrangement which is made to arrange future payments. In this…

Q: Problem #2: Installment Note Proferred Corporation purchases an asset and finances it with a note…

A: Loan is an agreement between lender and borrower where lender provide borrower with funds in…

Q: You purchase a home priced at 1,750,000 Php. You paid 10% as the down payment and the remaining…

A: Loan amount =1750000 Down payment =10% Loan amount required =0.9×1750000 Loan amount required…

Q: * Erika Lagliva borrows 35,000 to be repaid for 9 years. (1) Find the total annual cost under the…

A: Loan Repayment: A loan once taken can be  repaid either by  making constant periodic payments…

Q: Problem #4: Kirk & Spock Company borrowed $100,000 from Bank Trust to finance the purchase of fixed…

A: Current ratio = It measures the liquidity of the company. Current Ratio shows the company's ability…

Q: 6% effemive RM1000 is invested in a fund for 3 years at 6% simple interest rate for the first…

A: We have to calculate the  Interest earned in the second year and the rate for the second year is 6%…

Q: 1. A business man wishes to set aside semiannual payments to purchase machinery after two years (two…

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

Q: 3. National City Corporation quoted a rate of 4.5% simple interest for the 2019-20 school year. It…

A: Given:Loan amount=$10000Interest rate=4.5%Amount is paid after graduationTo compute:Amount of…

Q: Kenneth's retirement fund has an accumulated amount of $50,000. If it has been earning interest at…

A: Here, To Find: Part 1. Size of the equal payments deposited at the beginning of every 3 months =?…

Q: U. John borrows $10 000 for 10 years and uses a sinking fund to repay the principal The sinking tund…

A: First we need to calculate future value of sinking fund after 10 years then the future value of…

Q: A- A company borrowed $60,000 for renovation. The company plans to set up a sinking fund that will…

A: Loan Amount = 60,000 Time Period = 5 years*2 = 10 semi annual periods Interest rate = 10%/2 = 5% per…

Q: Please show the solution 1. What is the present worth of 4100 deposited at the end of every three…

A: Hai There! Thank you for the question. Post has multiple sub parts, as per company authoring…

Q: A company borrowed $60,000 for renovation. The company plans to set up a sinking fund that will pay…

A: Given: Loan = $60,000 Interest rate = 10% period = 5 years Compounded semi annually

Q: eff Associates needs to repay $30,000. The company plans to set up a sinking fund that will repay…

A: Loan Repayment = 30,000 Sinking Fund Time Period = 8 years or 16 semi annual periods Interest Rate =…

Q: Present value of an annuityOn January 1 you win $50,000,000 in the state lottery. The $50,000,000…

A: The present value of an annuity represents the present worth of the money to be received in the…

Q: Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $50,000 at a 5% annual…

A: a) The question gives the following information:

Q: Present Value of an Annuity On January 1, you win $2,200,000 in the state lottery. The $2,200,000…

A: Present value of annuity can be computed by multiplying the present value of annuity of $1 at given…

Q: Present value of an annuity On January 1. you win $46,000,000 in the state lottery. The 545,000,000…

A: Here, Sum of Prize is $46,000,000 Annual Payments is $5,750,000 Number of years is 8 Interest Rate…

Q: A 10,000 loan is paid off over 10 years; interest is 6 percent effective. The borrower uses a…

A: Sinking funds are funds which are set aside for the repayment of a particular debt or loan.

Q: You purchase a home priced at 1,750,000 Php. You paid 10% as the down payment and the remaining…

A: Interest is the amount charged on loan for using the loan amount for the specified period. The…

Q: 3) Payments of $2500 made at the beginning of each semiannual period for 15 years at 4% compounded…

A: Calculation of annual payment: Answer: Annual payment is $2,550

Q: A depreciation fund for machinery replacement must contain P2,000,000.00 at the end of 5 years. If…

A: Future value (FV) = P 2,000,000 Period = 5 Years Number of quarterly payments (N) =5*4 = 20 Annual…

Q: Present Value of an Annuity On January 1, you win $60,000,000 in the state lottery. The $60,000,000…

A: Present value is the value of the future sum of money or cash flows today as per given rate of…

Q: Present Value of an Annuity On January 1, you win $2,900,000 in the state lottery. The $2,900,000…

A: Present value of annuity can be calculated as: = Annuity payment * Present Value annuity factor (i%,…

Q: QUESTION 5 A bank originates a 30 year fully amortizing FRM at an annual interest rate of 5.5%. 9…

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

Q: 6. A company wishes to borrow $7 500000 for 8 years. One source will lend the money at j2 = 9% if it…

A: Loan financing refers to the arrangement of loan funds with the scheduling of the repayment. The…

Q: Questions 6-10 are related and share the same information: You decide to invest in $8,750,000.00 of…

A: Here, Investment is $8,750,000.00 Due Date is 38 days Interest rate is 12% Repo rate of finance is…

Q: Problem 1 A P 6, 000.00 was lent at 6% simple interest for 4 years. At the end of 4th year, the…

A: Under simple interest, interest is always calculated on the principal amount. Under compound…

Q: Amortize a 6% loan of RM25 000 that is paid back in four annual end of period installment. 2. A…

A: As you have asked multiple questions , we will solve the first question as per Bartleby policy.…

Q: Construct an amortization schedule for a $1,000, 3.9% annual rate loan with 3 equal payments. The…

A: A type of loan in which the borrower has to make a schedule for the periodic payment regarding both…

Q: What amount will accumulate if we deposit P15,000 at the end of each year for the next 8 years.…

A: In order find the future value one needs to calculate the future value of annuity.

Q: (a) The future value in three years of $1,000 deposited today in a savings account with interest…

A: The future value in three years of $1,000 deposited today in a savings account with interest…

Q: Problem 7-19 A corporation issues a debt instrument such as a bond that promises to pay you annually…

A:

Q: QUESTION 7 A corporation decides to deposit a fixed payment per quarter into an account earning 8%…

A: Compound interest is the interest that is charged on the principal amount as well as interest…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.