Regular investments made at the beginning of each quarter earn 6.4% compounded quarterly. How many more $3,000 investments than $3,400 investments will it take to accumulate $120,000? (Do not round Intermedlate calculations and round up the number of Investments.) It will take more payments.

Regular investments made at the beginning of each quarter earn 6.4% compounded quarterly. How many more $3,000 investments than $3,400 investments will it take to accumulate $120,000? (Do not round Intermedlate calculations and round up the number of Investments.) It will take more payments.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 21PROB

See similar textbooks

Related questions

Q: explain these two briefly

A: Management Risk: Management risk implies the risk of negatively affecting the holdings of the inves...

Q: Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, if the...

A: Given Forward dividend = $2.08 1T Target Est = $105.28 Required return = 11.5%

Q: With a 50% debt ratio and 2,000,000 worth of capital, the company posted dividends amounting to one ...

A: Here, Debt ratio = 50% Capital = 2,000,000 Dividend = 1/5th of retained earnings Retained earnings ...

Q: 12. A company is planning to make a new investment worth 1200 USD, with projected income from year ...

Q: A certian stock pays dividends continuously at a rate of 6 per year. The current price of the stock ...

A: Current stock price = S Dividend yield rate = δ r = Risk free rate F = Forward price n = Duration

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and repaid over a 5-year period...

A: Present value of all of future payments considering the interest rate and time period should be the ...

Q: A $5,000 bond that has a coupon rate of 5.60% payable semi-annually and maturity of 5 years was purc...

A: The book value of the bond refers to the money that the issuer of the bond owes to the holder of the...

Q: ash management model of

A: Step 1 For businesses with unexpected revenue and expenditure, the Miller-Orr cash management model ...

Q: Life insurance premiums paid by the company on its officers and employees are considered permanent d...

A: Life insurance is a contract between the two parties like the corporation or the individual and an i...

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

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

Q: A salesman earns P2,500 on the 1st month, P2,800 on the 2nd month, P3,100 on the 3rd month and so on...

A: Since you have posted a multiple question then we will be solving the first question only as per the...

Q: what is the stock market, and why is it important?

A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of e...

Q: Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawy...

A: We need to apply the concept of time value of money. The concept states that money today has more wo...

Q: ( :). ( 26 + a За + 2b Consider two assets with returns: rı = b r2 = in two states. - a a + 26 Calcu...

A: r1 = 2b+ab-a r2 = 3a+2ba+2b Portfolio return r = 4-6 2 units for first asset and -1 units of second ...

Q: Daryl Kearns saved $240,000 during the 30 years that he worked for a major corporation. Now he has r...

A: Net present value is the sum of the present value of net of all cash outflows and inflows discounted...

Q: Quantitative Problem 2: You and your wife are making plans for retirement. You plan on living 25 yea...

A: While calculating, the amount required in the retirement account, we are required to calculate the f...

Q: An investor has a stock investment with a beta of 1.25. He was expecting to have the return on his s...

A: We need to use CAPM equation to calculate new expected rate of return. The equation is Expected rat...

Q: LLL Company is listed on its country’s stock exchange. The following individuals serve on the board ...

A: The board of directors of a company constitute sub committees which play an important role in corpor...

Q: A building cost P8.5 million and the salvage value is P50,000 after 23 years. The annual maintenance...

A: The present worth analysis is an analysis where all the present values are calculated. All the disco...

Q: cost of preferred shares

A: Preferred shares are the shares having priority for getting dividends rather than common shares. It ...

Q: Assess the use of interest rate options, including swap options

A: Options are referred as the financial derivatives, which used to giver the purchasers the right, but...

Q: The effective cost of the preference share is closest to * a. 8.40% b. 7.50% c. 9.40% d. 5.88%

A: Cost of preference shares refers to the amount paid to the preference shareholders of the company in...

Q: Question 3 What is the price of Thera Corpn's zero coupon bond with 10 years to maturity? The bond w...

A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: William's student loan of $24,500 at 3.22% compounded quarterly was amortized over 6 years with paym...

A: The present value of loan is equal to the sum of the present values of all future monthly installmen...

Q: Name Five factors of a firm's board of directors an analyst should examine

A: Board of directors is very important in company because every decision making is done by management ...

Q: 22. Alfa Corp's stock pr value per share was $37.50. What is its P/B ratio? * O a) 1.34 O b) 2.4 074...

A: Dupont ROE With profit margin, total asset turnover and equity multiplier, the Dupont ROE is calcula...

Q: 5. Capital Markets are the financial markets for stocks and for intermediate or long-term debt (one ...

A: A capital market is a financial market that buys and sells long-term debt (over a year) or equity-ba...

Q: Viola wants to withdraw $8,000 each year from July 1, 2025 through July 1, 2029. The investment fund...

A: 1) Focal year is year 2024 Withdrawal each year (W) = $8000 Number of withdrawals (n) = 5 r = 5% Le...

Q: Fiscal year is January-December. All values PHP Millions. 2020 2019 Cash & Short Term...

A: Working capital management is defined as the business strategy, which helps in ensuring the company ...

Q: Joshua inherited six parcels of land. He sold one parcel to secure funds for his school expenses. Jo...

A: A contract is a legally enforceable promise or set of promises that provides access to remedies for ...

Q: Strike price is 95 and current stock price is 100 Time to expiration is 2 years and the stock pays n...

A: Put call parity is basis for the calculation of the price of call option and put option using the st...

Q: 9. TSE company reported a Net income of $150 million for year N. Depreciation expense was $141 milli...

A: Net income = $150 million Depreciation = $141 million Interest expenses = $60 million Tax rate = 30%

Q: What is the net income for the BlueDragon cormpany given the following list of accounting iterns? no...

A: Solution:- Net income means the net profit available to a corporation after taking into consideratio...

Q: 17. Zoom has a DSO of 35 days, and its annual sales are $6,500,000. What is its accounts receivable ...

A: DSO = 35 days Sales = $6,500,000 Number of days in a year = 365

Q: If Average assets and capital are 900,000 and 540,000, respectively, with a net income of 47,520, wh...

A: Return on equity is a type of financial ratio of a company. Return on equity is a performance measur...

Q: A $14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was pur...

A: Face value (F) = $14500 Coupon (C) = (5.80% * 14500) / 2 = $420.50 n = 5 years = 10 periods t = 6 pe...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thre...

Q: Penny Pincher Discount Grocers has issued a bond with a coupon rate of 11%. It recently closed at a ...

A: Current yield = Face value of bond * Coupon rate / Current stock price

Q: Mr. James Lubay working in the United States planned of returning to the Philippines at the end of 2...

A: To Find: Principal in the fund at the end of 2001

Q: Pls Briefly explain these four. 1. The process of assessing overall risks can be difficult and bal...

A: The process of identifying, analyzing, and accepting or mitigating uncertainty in investment decisio...

Q: A borrower is purchasing a property for $325,000. She is considering the following three loans: Loan...

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that includ...

Q: gdhoo3Q0NZTErqE4rKhjN 8. The December 31, 2019 income statement for App Inc. reported $2.5 million o...

A: Since you have asked multiple questions we will answer the first question for you. Please post quest...

Q: What is the monthly interest rate for a fixed interest rate of 12% per annum? Choices: 1% 12% ...

A: Annual Interest rate = 12%

Q: return on equity ratio

A: The ratio refers to the relation between two financial values which shows the comparison between the...

Q: When adding a risky asset to a portfolio of may risky assets, which property of the asset has a grea...

A: Portfolios can consist of a variety of investments such as equities, bonds, commodities, cash and ca...

Q: 3. Consider an EOY geometric gradient, which lasts for eight years, whose initial value at EOY one i...

A: A cash flow series is a series in which the cash flows in and out at certain period of time. However...

Q: An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will b...

A: Here, Here, From Year 1 to Year 2, Repair cost is P0 From Year 3 to Year 7, Repair Cost is P90,000 ...

Q: When you retire, you plan to draw $50,000 per year from your retirement accounts, which will be earn...

A: Here, Annual payment = $50,000 Interest rate = 6% Number of periods = 10 years To Find: PV of annuit...

Q: inventory? 17. J. Lo's Clothiers has forecast credit sales for the fourth quarter of the year: Septe...

A: A schedule of cash receipts or payments is a document that shows the pattern of budgeted cash receip...

Q: Carnes Cosmetics just paid a $5 dividend. Company sales are falling, as the industry is slowly decli...

A: Share price Share price is the current market price of the share. It is the price of the share at wh...

Question

Regular investments made at the beginning of each quarter earn 6.4% compounded quarterly.
How many more $3,000 investments than $3.400 investments will it take to accumulate $120,000? (Do not round Intermediate
calculatlons and round up the number of Investments.)
It will take
more payments.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)
An investment of $15,785 is accumulated at 6.5% compounded quarterly for 5 years. At that time the interest rate is changed to 4.3% compounded monthly. How much is the investment worth after 10 years? Answer to the nearest cent.
Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is 10.44 percent, and the compounding is daily, what is the effectiveannual rate (EAR)?
Suppose an investment of $5000 is made every month in an account which pays an interest rate of 6% compounded semi-annually. What is the value of the investment after 5 years. $348,850 $370,543 $450,135 $348,190
Shenseea stocking of $4,300 in account today. Shenseeawants to grow for 43 years, nothing Interest compounds monthly with an annual rate of 5.2%.The rate of inflation will be averages 3.5% over that time, what is the value of that investment account in real dollars?
Suppose $15,000 is invested in an account with an APR of 4.5%. If the interest is compounded annually, how much interest is earned over the first 6 years? If the interest is compounded monthly, how much interest is earned over the first 6 years?
An investment of $2500.00 earns interest at 8.25% p.a. compounded monthly for 3 years. At that time the interest rate is changed to 6% compounded quarterly. How much will the accumulated value be three and a half years after the change? Do not use Excel, normal formulas only.
Suppose an individual makes an initial investment of $1400 in an account that earns 7.8%,compounded monthly, and makes additional contributions of $100 at the end of each month for aperiod of 12 years. After these 12 years, this individual wants to make withdrawals at the end ofeach month for the next 5 years (so that the account balance will be reduced to $0). (Roundanswers to the nearest cent.)a) How much is in the account after the last deposit is made?b) How much was deposited in total?c) What is the amount of each withdrawal?d) What is the total amount withdrawn?
An investment will pay you $96,000 in six years. Assume the appropriate discount rate is 7.5 percent compounded daily. What is the present value? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.
Xu Salon has a line of credit of $150,000 with an interest rate of 1.625 percent per quarter. The credit line requires that 2.25 percent of the unused portion of the credit line be deposited in a non-interest-bearing account as a compensating balance. Xu Salon's short-term investments are earning .35 percent per quarter. If the line of credit goes unused all year, what is the effective annual interest rate on this arrangement? Assume any funds borrowed or invested use compound interest. Give typing answer with explanation and conclusion
An investment will pay you $95,000 in 9 years. Assume the appropriate discount rate is 9 percent compounded daily. What is the present value? Note: Use 365 days in a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Suppose that $2700 is invested in an account with an APR of 3.9% compounded continuously. Determine the value of the investment at the end of 5 years. What is the annual percent change (APY) for the account?