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- Your company will generate $64,000 in annual revenue each year for the next seven years from a new information database. If the appropriate discount rate is 7.25 percent, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)UPVOTE WILL BE GIVEN! WRITE THE SOLUTIONS LEGIBLY. YOU MAY USE EXCEL. Given Investment A: 3.91% compounded semiannually and Investment B: 3.79% compounded quarterly Which investment is much better?Suppose you deposit D dollars at the beginning of each month into an account that pays a monthly rate of r as a decimal. Then, the balance B of the account after t months is given by B = D(1 + r) (1 + r)t − 1 r dollars. Suppose you deposit $160 at the beginning of each month into an account that pays a monthly rate of r = 0.005, which corresponds to an APR of 6%. How long does it take for the account balance to build to $2600? Report your answer to the nearest whole month. months
- What nominal rate compounded monthly is equivalent to 20% compounded annually? Round off your answer to six decimal places. Show a solutions.If you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)INSTRUCTIONS: Help me answer the given question. Do not round off answer when solving, instead just the final answer will be rounded off to two decimal places 6. Calculate the perpetual equivalent annual cost (years 1 to ∞) of $925,000 now and $975,000, 3 years from now at an interest rate of 9% per year. The perpetual equivalent annual cost, (in $) Round off to the nearest two (2) decimal places
- Percentages need to be entered in decimal format, for instance 3% would be entered as .03 in the interest rate cells.) Suppose your opportunity cost (interest rate/year) is 11% compounded annually. How much must you deposit in an account today if you want to pay yourself $230 at the end of each of the next 15 years? How much must you deposit if you want to pay yourself $230 at the beginning of each of the next 15 years? Bruce invested $1,250 (present value - enter as a negative number) 10 years ago. Today, the investment is worth $3,550 (future value). If interest is compounded annually, what annual rate of return did Bruce earn on his investment? (Use Solving for r - Rate of Return- on a Lump Sum) Mario wants to take a trip that costs $4,750 (future value), but currently he only has $2,260 (present value - enter as a negative number) saved. If Mario invests this money at 7% compounded annually, how long will it take for his investment to grow to the needed amount of…Please show all formulas and the process in Excel for each question. You borrow a GPM of $450,000 with annual payments and 15-year term. The interest rate is 4.5% and the payment factors from year 1 to year 15 are: 50%, 50%, 50%, 50%, 50%, 75%, 75%, 75%, 75%, 75%, 100%, …, 100%. Questions: What are the annual payments for years 1 to 15? What is remaining balance at the end of each year? What are the interest payment and principal payment for years 1 to 15? Answer the questions (1) to (3) above if annual payment is changed to monthly payment.The fixed rate on an FRA expiring in 30 days on 180-day LIBOR with the 30-day rate being 5percent and the 210-day rate being 6 percent is how much? Show work and discuss result. Who uses FRA’s primarily and why?
- At what nominal rate compounded semi-annually will Php5,000 amount to Php6,000 in 2 years? What is the effective rate? Round off your answer into 2 decimal places. a. Nominal rate ________% b. Effective rate ________%Course: Financial MathematicsA capitalist places a sum of $12,500 at 4% per annum and 3.5 months later, another sum of $28,500 at 4.75%. After how much time will two (2) sums placed have yielded equal interest, and how much would first sum have yielded at twice the time, and how much would first sum placed at twice the time and with a discount of 0.5% in rate have yielded? Answers: 5.6 months of time and $408.33 yields the first sum. Please procedures are needed to get answer by professor THANKS :Dset up an equation and solve each problem. Suppose that $500 is invested at a certain rate of interest compounded annually for 2 years. If the accumulated value at the end of 2 years is $594.05, find the rate of interest.