The finance firm offers two investments alternatives. Select the best investment plan to the investors point of view at i = 12% compounded annually.

Q: A farmer bought a tractor costing P12,000 if paid in cash. The tractor may be purchased by…

A: Answer: Compound interest is calculated by considering both the principal amount in the beginning…

Q: How much interest is payable each year on a loan of $2,000 if the interest rate is 10% per year when…

A: Instalments are the payments of equal size paid at the regular interval of time for the repayment of…

Q: On July 1, 2001, a savings account has $1000. This account earns interest at an annual rate of 1.5%…

A: Answer Given  P= $1000 ; t (time)= 2 years a.) If rate is 1.5% compounded continuously. S= Pert S=…

Q: Aerotrain Corporation, manufacturer of aircraft simulators and training equipment for aircraft…

A: If Aerotrain buys the building at 150000 (initial investment), the annual savings will be 25000 $…

Q: Ashley purchased a common stock worth $5,000 every year (starting in year 1) for a period of 10…

A: Investment each year = 5000 $ time = 10 years future value = 80000

Q: Given the nominal rate of 12% per year compounded continuously, find (rounded off to five…

A: Here, nominal interest rate is given as 12% per year that is compounded continuously.

Q: Your grandfather deposits $50,000 into your savings account that pays 6% interest compounded…

A: Solution: Option a) is Correct $3,068 Deposit amount (Present value) = $50,000 Interest rate = 6%…

Q: What is Mixed-Dollar Analysis?

A: Mixed-Dollar Analysis is commonly known as a currency basket that consists of different currencies…

Q: Suppose an investment is project to generate income at the rate of  R(t) = 200, 000 dollars per year…

A: * SOLUTION :-

Q: Bill Mitselfik has purchased a bond that was issued by Acme Chemical. This bind has a face value of…

A: Given Information: Bill has bought a bond from Acme Chemical Face value of the bond =$1000 Bond…

Q: If you make quarterly deposits for 3 years into an account that compounds interest at 1% per…

A: Compound interest is the addition of interest being made to the principal sum of a deposit or loan.

Q: The current price of a non-dividend-paying stock is £39.0. Over the next year it is expected to rise…

A: The risk-free rate represents the interest an investor would expect from an absolutely risk-free…

Q: company sets aside P 300,000 each year as a fund for expansion. If the fund earns 9% compounded…

A: Amount for fund expansion = 3,00,000 each year Interest rate = 9% FV = 3,000,000

Q: Mrs. Akhtar is planning to place her savings earned by selling her jewelry in a bank account. She…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: The cash flow diagram below has an internal rate of return of 35%. What is the value of Y if…

A: The present-worth of a single payment is: PV=Cash-Flow1+RN PV: present-value/worth R: interest-rate…

Q: Ten years ago, I purchased a bond for $1,350. This bond has a 25-year maturity, a $1,000 par value,…

A: Formula for calculating the current market price of a bond is given below: P=F1+λmn-Cλ1-11+λmnwhere…

Q: Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per…

A: We need to find futute value when present value is compounded at the rate of 12% for 10 years.

Q: A $4,000 face value coupon bond with a $200 coupon payment every year has a coupon rate of:

A: The advantage obtained from a decent or service to a person or firm is measured by its amount. The…

Q: Find the net present worth of the following cash flow series at an interest rate of 9%.

A: Net present value (NPV) formula: NPV = ∑i=1nCi(1+r)i  - Initial investment. Where Ci is cash flow in…

Q: A man deposited ₱5,000 in a bank at a rate of 12% per annum from January 10,1999 to November…

A: Solution : Introduction Accumulated Interest for 365 days principle Amount x interest rate

Q: Identify the payment period and compounding period for the following situations:a. Deposits are made…

A: a. The payment period is quarterly and the compounding period is monthly.

Q: An investment earns 3% compounded monthly. Find the value of an initial investment of Php 5,000…

A: The capacity of an asset to create returns that are then reinvested or stay invested with the…

Q: Your RSD group has developed and tested a computer software package that helps engineers control the…

A: a. Considering decrease in market share by 25% over the previous year's share the net cash flow…

Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…

A: Given Information  Interest rate 2.2% (6 Months compounded). Effective Annual Interest rate can be…

Q: What is the future amount of P 5,000 if the single payment present worth factor is 0.253?

A: Given PV = 5000 and Present worth factor = 0.253

Q: A company invested ₱ 400,000 presently and expected a revenue of “x” at the end of years one and…

A: Initial investment = 400000 Annuity amount = x Interest rate = 14%

Q: Compare the accumulated values at the end of 10 years if P100 is invested at the rate of 12% per…

A: Compound interest formula: FV = P * (1 + r/m)nm Where FV is future value P is principal value  r is…

Q: The compound value is defined as: Multiple Choice the value of a sum after investing over one or…

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: If you make quarterly deposits for 3 years (beginning one quarter from now) into an account that…

A: The value of n can be calculated as follows:

Q: A company contributes $180 per month into a retirement fund paying 4.30% compounded monthly and…

A: Fund 1 Payment per month = 180 $ Interest rate = 4.30 % compounded monthly Monthly rate = 0.358 %…

Q: Compute the accumulated amounts after 5 years of P1,000 invested at the rate of 10% per year…

A: PV = 1,000 r = 10% t = 5

Q: A series of cash flows are established on an account as listed below. - Payment of P1.325 at the end…

A: We have a set of cash flows: Cash flow of P1.325 at the end of the 2nd, 4th, and 7th year at an…

Q: A loan for P 60,000.00 is to be paid in 4 years at the amount of P 75,000.00 . What is the effective…

A: Given: The present value of loan is = P 60,000 Number of years = 4 The future value of the loan…

Q: Capital stock in year 15 (i.e., K15) is equal to

A: Given information K0=21934 N0=103 A=13 s=0.2 d=0.08 n=0.01 an=0.7 ak=0.3

Q: If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual…

A: In an economy, when interest rate is compounded continuously, it will never to compounded infinitely…

Q: Three months ago, Jim purchased $11,000 of U.S. Treasury bonds. These bonds have a 30-year maturity…

A: by using the present value method we calculate the current value of bond by using the given…

Q: The first cash flow in the arithmetic gradient series is _____

A: In a market, when an individual wants to make an investment, he tries to make an estimation of…

Q: If the VF Corporation deposits $20 million of its retained earnings in an aggressive stock ownership…

A: Deposit (D) is $20,000,000. Interest rate (i) is 18% per year compounded monthly. Compounded…

Q: A recent government study reported that a college degree is worth an extra P120,000 per year income…

A: Given information: Cash Flow = 120000r = 0.06n = 40 years The future value of annuity is calculated…

Q: Determine the value of the following factors by interpolation, and compare the results with those…

A: (a) The capital recovery factor for 36 periods at 6.25 compounded interests can be found by using…

Q: Gabe purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would…

A: Semiannual is the adjective that describes one thing that's paid, reported, published, or otherwise…

Q: How long will it take toO double Kim's P100000 investment in a trust fund which earns continuous on…

A: Since the Amount(A) becomes double the initial principal (P), the A/P ratio becomes 2. Rate of…

Q: In a cash flow analysis, what would be used to denote the intial investment?

A: Introductory investment is the sum needed to begin a business or a venture. It is additionally…

Q: Costa Rica Savings Bank issues 100,000 bonds as a response to the Costa Rica Central Bank's…

A: face value (FV) = 40,000 annual bond interest (PMT) = 40,000 x 8% = 3,200 number of years (NPER) =…

Q: A loan was to be amortized by a group of four end-of-year payments forming an ascending arithmetic…

A: We know that the present value is the current value of the future sum of money given a specified…

Q: What is the total amount of money to be repaid at the end of 3 years for the loan of 160 000 lira…

A: Compound interest: A=P1+r100nWhere, A=AmountP=Principalr=Rate of interestn=Time(In years)

Q: What lump sum amount of interest will be paid on a P1,000,000 loan that was made on August 1, 1993,…

A: Simple interest will be interest determined on the chief piece of credit or the first commitment to…

Q: By the conditions of a will, the sum of P 250,000.00 is left to a girl to be held in trust by her…

A: PV(present value) is 2,50,000 FV(future value) is 5,00,000 R= 0.07/12 = 0.0058 (Adjusted)