What is the future value of $20,000 in three years at an annual interest rate of 5%?

Q: 1. A Machine costs P80,000 and an estimated life of 10 years with a salvage value of P5,000. What is…

A: Depreciation can be defined as the reduction in the value due to wear and tear in asset over a…

Q: You have 100,000$ saving that is very important for you. You want to invest it for the next two…

A: Here, Discount Rate = 1% Savings = $100,000 To Find: NPV percentage of returns for selecting a…

Q: 2. (a) Let the following be observed for the stock price of ZPZ-Bank this day: P = £5.50 (The…

A: Here, To Find: Part a. Fair value of three-month call option =? Part b. Fair value of three-month…

Q: Using the tables provided, if an investment is made now for $19,200 that will generate a cash inflow…

A: Given, The investment is $19,200 Cash inflow is $6,400. Rate is 10%

Q: What is the present value of a 12 year lease arrangement with an interest rate of 7.5% that requires…

A: As per the information provided:  C= Cash flow = $4,250i = Interest rate = 0.075n = Number of…

Q: Adrian pays ₱608497 cash and the balance in 17 quarterly payments of ₱24588 for a house and lot. If…

A: Cash payment (DP) = P608497 Quarterly payment (P) = P24588 Number of quarterly payments (n) = 17…

Q: interest rate risk differs between mortgage companies and other financial institutions

A: The mortgage company is a financial firm that gives out its own loans. They use their own funds or…

Q: compute the rate of return.

A: Accounting rate of return (ARR) refers to a financial ratio which is used by the company to compute…

Q: A Treasury bill has a bid yield of 5.44% and an ask yield of 5.29%. The bill matures in 69 days.…

A: Given, The face value is $10,000 Time to maturity is 69 days

Q: ective rate of interest on an investment is 5.52%, what is the nominal rate of interes nded monthly?

A: Solution:- Effective rate of interest means the net interest rate for the year after effect of all…

Q: subprime mortgages. Why were mortgage companies aggressively offering subprime mortgages

A: Subprime mortgages are a kind of house loan. These types of loans are provided to poor people, those…

Q: Fran has made a taxable gift of one-half of the value of the residence because Stan paid no…

A: Gift tax charges on the value of large gifts which is transferred and affect the wealth without any…

Q: A new drill press is being considered to purchased. The estimated first cost is Php 200,000. The net…

A: IRR is the discount rate that makes the present value of cash inflows equal to initial investment…

Q: Nuka Cola has a beta of 0.85. If the risk-free rate of return is 4% and the expected return on  the…

A: Beta = 0.85 Risk free rate of return = 4% Market return = 9%

Q: Could you explain how you getting the effective interest rate....and any other formula that can be…

A: Effective interest rate is different from the annual percentage rate. This is because effective…

Q: revenue-generating and pricing mechanisms for a new traveling business site

A: The ways by which one can generate revenue for a new travelling business site are as follows:…

Q: Which of the following is not an assumption made by Modigliani and Miller in relation to the…

A: The question is related to theories of Capital Structure.  As per MM Approach, a change in…

Q: |Company 2019 Gross Revenue $4,250,000| Company 2019 Gross $1,628,000| Profit Annual 58% Retention…

A: Customer lifetime value (CLV) is a measure of the average customer's revenue generated over their…

Q: Chrustuba Inc. is evaluating a new project with an after-tax cost of s8.0 million at t = 0. There is…

A: Data given: NPV if successful (50% chance) Year Cash Outflow ($) Cash Inflow ($) 0 -8000000…

Q: You borrow $700,000 at 3% interest for 30 years on a mortgage. What is your monthly payment?…

A: To calculate the monthly payment we will use EMI formula as follows:   Monthly payment =…

Q: National Corporation finances its projects with 40 percent debt, 10 percent preferred stock, and 50…

A: Yield to maturity = 0.084 Cost of preferred stock = 0.09 Cost of common stock = ? Risk free rate =…

Q: You bought a house with a 30-year mortgage with loan size $500,000 and interest rate 6%. Assuming…

A: First, we need to find out, yearly installment to be made. Solved using Financial Calculator  PV =…

Q: Suppose that the price of a Treasury bill with 85 days to maturity and a $25,000 face value is…

A: Bond equivalent yield can be calculated by using the below equation. Bond equivalent yield =(face…

Q: Investment required Present valae of cash infows NPV Usefl e of the project A $260,000 $505,900…

A: We know that profitability index can be calculated as follows = Present Value of Cash inflows /…

Q: Alfredo wants to know how much he must put in a bank account today to have within 14 years an amount…

A: Here, To Find: Conversion rate to the current dollar and the present value of an investment with…

Q: If you deposit $500 in a bank account today that earns 3% interest and you deposit $20 per month…

A: Option 1: Deposit $ 500 now Future Value = Present Value*(1+ Interest rate)n Solved using Financial…

Q: 7. The present value of a bond is the rate of interest times the expected annual income flow…

A: Thanks for Questions: Bartleby's Guideline: “Since you have asked multiple question, we will solve…

Q: 50,000 is invested for 6 months at 12% per annum. The value of the investment, to the nearest whole…

A: We know that the formula for compound interest is as follows. Compound Interest = P (1 + (r/n)/100)^…

Q: And investor plans to invest $500 a year and expect to get a 10.5% return if the investor makes…

A: Future value refers to the value that an amount would assume at a future time period after…

Q: Determine the B/C ratio for the following project. First Cost P100, 000 Project life, years 5…

A: B/C ratio known as the benefit-cost ratio is computed by calculating the present value of benefits…

Q: professional letter of etiquette and engagement letter.

A: Professional letter writing and normal writing are entirely different. Letter of etiquette should be…

Q: explain each ratio of this list what happened in 2019, 2020, 2021? List of Ratios 2019 2020 2021…

A: Gross profit margin: Formula of Gross Profit Margin=(Sales Revenue - Cost of Sales)Sales Revenue*…

Q: Smart Company is expecting temporary idle cash. Hence, it is considering investing in marketable…

A: Here, Per Transaction Cost id P10 Interest Rate is 6% Cash Payment is P12,000,000 monthly

Q: To retain high-performing engineers, a large semiconductor company provides corporate stock as part…

A: Present value analysis The present value is calculated by summing up the present value of all…

Q: Which of the following correctly describe a role played by a member of the estate planning team?…

A: Solution:- Estate planning means all the procedure to sell assets of a person in event of his death.

Q: Determine the PW (Present worth) at 8% of the given cash-flow diagram. Use MS Excel

A:

Q: The COVID-19 pandemic has caused an unprecedented disruption to the global economy. The world is…

A: Prior to COVID-19, levels of domestic revenues and external  flows  to developing economies, in…

Q: Explain liquidity risk and credit risk faced by banks and discuss how banks manage these risks

A: Liquidity risk It is characterized as the risk of bringing about misfortunes coming about because of…

Q: D. Conaider E CRA)= 20%0 E CR): 30% a port folio of 2 assets A &B where risky =10% 8:20% : 20%. A,B…

A: Solution:- Minimum Variance Portfolio is that portfolio in which the weights of securities are such…

Q: Master Machines, Inc. 2017 2018 Sales $1,240 $1,385 COGS 820 910 Interest 25 20 Dividends 25.50…

A: Operating cash flow is cash flow available after the payment of all operating expenses including the…

Q: EXPLAIN THE ADVANTAGE OF offshore trust?

A: Offshore trust is the planning tool to protect your assets, This trust is created in abroad, It is…

Q: 7.1. How many years will it take for an investment to double in value, if it earns interest at a…

A: Thanks for the question Bartleby's Guideline “Since you have asked multiple question, we will solve…

Q: 16. Puan Siti intends to borrow from a bank to finance the cost of buying a house at Banting with a…

A: Present value of Annuity With periodic interest rate (r), total period (n) and annuity (P), the…

Q: ABC Savings and Loan charges a monthly fee of $10 on checking accounts and an overdraft protection…

A: Banks send the monthly account statements in that they send details of money withdrawn and money…

Q: A typical London cyclist might expect to earn £40k a year. This is reduced to £20k for one year…

A: London cyclists might expect to earn £40k a year. This is reduced to £20k for one year following a…

Q: A company estimates that a certain piece of machinery will have to be replaced in five years' time…

A: Future value of growing annuity = [P/(r-g)] *((1+r)^n - (1+g)^n / (r-g)) P = Initial payment = 2000…

Q: Arjay purchases a bond, newly issued by Amalgamated Corporation, for $1,000. The bond pays $60 to…

A: A) Principal amount = $1000 Term = 3 years Coupon rate = 60/1000 = 6% Coupon payment = 60

Q: a. Outline the three main forms of business organisation and critically discuss the benefits  and…

A: Thanks for Questions “Since you have asked multiple question, we will solve the first question for…

Q: An engineer who is about to retire has accumulated $50 000 in a savings account that pays 6% per…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: Overseas bank is pooling 50 similar and fully amortized mortgages into a pass-through security. The…

A: Given,  The value of each mortgage is 100,000 Number of Mortgages = 50 The value of 50 mortgage = 50…