What is the future value of $3,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually? (Do not round intermedilate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value
Q: GMC is growing quickly. Dividends are expected to grow at a rate of 6 percent for the next three yea...
A: Dividend: The dividends are the returns provided to the shareholders by the company. The dividends a...
Q: One of the most important implications of our discussion of risk and return is the benefit of: O tak...
A: There are two aspects of investment one is return and other is return and there should be proper mix...
Q: What are the key differences between leasing and borrowing assuming that the loan agreement calls fo...
A: A loan is a sort of credit instrument in which one party lends money to another in exchange for the ...
Q: On March 15, year 1 ABC Corporation adopted a plan to accumulate P1,000,000 by September 1, year 5. ...
A: Annual deposit = X Interest rate (i) = 10%
Q: Bob Russell purchased a home theater system for $5200, paying $500 down. The balance was financed fo...
A: Loan is a value which is borrowed from external sources like banks and this amount is repaid later i...
Q: 4. Consider an iìnvestment of $100,000 that yields $20,000 after year 1, $30,000 after year 2, $60,0...
A: To calculate the payback period, we need to find the time that the project has recovered its initial...
Q: Problem 4. Direct Financing Lease with Residual Value On January 1, 20x1, ABC Financing Co. leased e...
A: Note: This question has several subparts. The first three subparts have been answered below.
Q: You borrow $5000 from a family member and agree to pay it back in 5 months. Because you are part of ...
A: Amount owed (X) = $5000 n = 6 months r = 0.5% per month
Q: Why does business risk vary from industry to industry?
A: Business risk is an important parameter evaluated in the industry. Business risk can be defined as t...
Q: Answer all parts
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...
Q: 7. If net sales amounted to P200,000, net income before tax is P80,000 and the income tax rate is 30...
A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...
Q: In 1983 the average tuition for one year at an Ivy League school was $11,800. Thirty years later, in...
A: Growth rate is used in time value of money which shows the increase in nominal value of an asset or ...
Q: Innovative Financial Inc. issues a bond with the following information: Par: $1,000 Time...
A: Par value (FV) = $1000 Period = 20 Years Quarterly period (n) = 20*4 = 80 YTM = 8% Quarterly YTM (r)...
Q: The SF/S 180-day forward exchange rate is SF1.30/S and the 180 day forward premium is 8 percent. Wha...
A: The spot rate is the exchange rate on immediate purchase in the current market. The forward rate is ...
Q: HOW DOES INTEREST RATE AFFECT THE FINANCIAL MARKET AND FINANCIAL INSTITUTIONS
A: Interest rate is the rate of interest which is charged on borrowings in the economy.
Q: naline wants to have 5000 dollars after 6 years in the account that draw a nominal interest of 7 per...
A: The future value of goes on increasing as there is more compounding over the period of time.
Q: eter has saved $510 per month for the last years in savings account earning 4.2% ompounded semi-annu...
A: The future value of the money includes the deposit made and compound interest earned and this money ...
Q: Selected financial data for Fey Company is presented below.
A: A tax shield is a decrease in taxable income accomplished by an individual or organization by claimi...
Q: A, B, C and C have a capital of 5 000 000 where the first is with company capital, the second has 30...
A: The debt-to-equity (D/E) ratio is derived by dividing a company's total liabilities by its sharehold...
Q: The required rate of return is 6%. Which of the following statement on decision rules is incorrect?
A: We can evaluate a project using various tools of capital budgeting like NPV, IRR, payback, discounte...
Q: Your mother has an annuity that will give her monthly payments for 13 years. She tell you it is wort...
A: The term "annuity" refers to an insurance contract issued and distributed by financial institutions ...
Q: Plz solve it within 30-40 mins I'll give you multiple upvote
A: Note : None of the answers are given correct , so we are solving the correct one for you as per the ...
Q: On January 1, 2021, Hestia Bank extended a 12%, P1,000,000 loan to Ares, Inc. Principal is due on Ja...
A: Amount of loan is P1,000,000. Rate 12%
Q: What is your net dollar sales projection for this year?
A: Sales: It represents the amount of money received from the firm's normal operations. Sales are also ...
Q: balance of 600
A: Given information : Cash balance 500000 Cash collections 2170000 Cash disbursements 2430000 ...
Q: Suppose we observe from market data that, for a given non-dividend paying stock, See Image What migh...
A: Forward price (F0) is the price of forward contract at which buyer and seller of the contract agreed...
Q: A credit union's Rate-Climber GIC pays rates of 21%, 26%, and 3.1% compounded semiannually in succes...
A: Given: Present value = $13,000 Interest rates: Year 1 = 2.1% Year 2 = 2.6% Year 3 = 3.1%
Q: A $4,500 loan at 8.4% compounded monthly was settled by a single payment of $5,500 including accrued...
A:
Q: a) Explain the term 'annuity'. b) What is meant by 'investment appraisal? c) Explain the term 'usefu...
A: As you have asked a question with multiple parts, we will solve the first 3 parts as per the policy ...
Q: . How much should you deposit monthly to accumulate $85,000 in 15 years?
A: Future Value of Annuity: It represents the future worth of current annuity payments made periodicall...
Q: Broadly defined, the foreign exchange (FX) market encompasses: O a. Foreign trade financing. Ob. Tra...
A: The foreign exchange market is the place where various countries' currencies are purchased and sold ...
Q: Briefiy explain (in one or two sentences) what the meaning is of the SFr/AS bid rate that you calcul...
A: Foreign Exchange rates: The value of one currency vis-vis another currency is known as the foreign e...
Q: Assume that the interest rate is greater than zero. Which of the following cash-inflow streams total...
A: Present Value(PV) refers to value of sum at current date which would be received or paid in future t...
Q: $300 $270 $240 $210 $180
A: Given information : Year Cash flows 0 $ - 1 $ ...
Q: On January 1, 2021, ABC Co. acquired all of the identifiable assets and assumed all of the liabiliti...
A:
Q: xyz corporation has a lower and upper limit for its savings account at 40,000 and 70,000 respectivel...
A: The Miller-Orr Model: The Miller-Orr Model is widely used in the management of cash in an organizati...
Q: If current assets amounted to P600,000 and current liabilities amounted to P200,000, what is the cur...
A: 1. Calculate the current ratio by dividing the current assets which is P600,000 by the current liabi...
Q: at is the
A: Introduction : Savings as well as investment opportunities are routed between providers (individuals...
Q: Mrs. Santos deposits P5,500 at the end of every six months in a savings account for her daughter's e...
A: Deposit = 5500 every 6 months End of month deposits Interest rate = 4% semi annual period N = 21 sem...
Q: LAST YEAR ABC CO MADE PROFITS BEFORE TAX OF $2628000. TAX AMOUNTED TO $788000 ABC COMPANY SHARE CAPI...
A: Profit before tax = $2628000 Tax = $788000 Shares outstanding = 2000000
Q: To help buy her new condominium, Mai is taking out a $163,000 mortgage loan for 30 years at 3.4% ann...
A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments ...
Q: is the importance of Mortgage Marke
A: Mortgage market is the place where you can get loans to buy the home and where you can buy or sell m...
Q: Which of the following is an example of a money market instrument? (Select all that apply) a. 2-year...
A: Money Market instruments:-Money market products are short-term financial instruments with a maturity...
Q: discussion on six assets included in a decedent’s gross estate. List and discuss three valuation dis...
A: Decedent’s gross estate is the gross value of all the assets owned by an Individual at the time of h...
Q: A businessman wants to have P500, 000 four years from now. What amount should he invest now if it wi...
A: Given information : Expected amount 500000 Interest rate for first two years 6% Interest rate...
Q: Jose is a member of a credit cooperative. The first P 50,000 of his savings earns interest at a rate...
A: Jose receives interest @8% on First 50,000 and 5.5% above 50,000 He has total deposit of 320,000 so ...
Q: Pedro Corp. currently has sales of P2,000,000, and its days sales outstanding is 2 week. The financi...
A: SINCE YOU WANT US TO SOLVE THREE PARTS BUT THE LAST PART BELONGS TO ACCOUNTS AS IT REQUIRES PREPARAT...
Q: True or False Please answer both. 1. Holders of equity have claims on both income and assets that ar...
A: Equity and preferred stock are the two types of stocks. The questions on claims of equity and prefer...
Q: Assume your organization wishes to make a Php 200,000 investment with a private equity firm in 2021....
A: a) Year Revenue Pv factor @ 12% Discounted value 2022 5000 0.8928 4464 2023 6000 0.7971 4783 ...
Q: A. find the monthly payment of an ordinary if the present value is P18,500 with an interest rate of ...
A: A) Present value of annuity = P 18500 Interest rate = 10% quarterly compounded n = 6 years = 72 mont...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?What is the future value of $3,600 in 20 years assuming an interest rate of 8.9 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future valueWhat is the future value of $1,750 in 17 years assuming an interest rate of 6.5 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
- If $1000 becomes $1,811.36 after 5 years when invested at an unknown rate of interest compounded quarterly, determine the unknown nominal rate and the corresponding effective rate.Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? $9,800 is deposited for 10 years at 6% compounded annually, determine the FV? What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4% compounded semi-annually?What is the future value of $2,520 in 12 years assuming an interest rate of 9.35 percent compounded semiannually?
- What is the future value of $6700 a year for 30 years at 10.5 percent interest, compounded annually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Suppose S500 is invested at 4% compounded quarterly. (a) How long will it take the investament to accumulate to $750 if the exact method for accumulation is in effect? (b) How long will it take the investment to accumulate to $750 if the practical method for accumulation is in effect? Be sure to us linear interpolation! (e) What anmual effective interest rate must 8500 be invested at to accumulate to S750 in 10 years?When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of interest?
- Given an interest rate of 4.8 percent per year, what is the value at date t = 10 of a perpetual stream of $3,200 payments that begins at date t = 20? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)What is the present value of $ 1, 552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6 percent rate? PV - Different Interest RatesSuppose you deposit $2,000 at the end of eachquarter for ten years at an interest rate of 9% compounded monthly. What equal end-of-year depositover the ten years would accumulate the same amountat the end of the ten years under the same interestcompounding? To answer the question, which of thefollowing is correct?(a) A = $2,000(F/A, 2.267%, 4)(b) A = $2,000(F/A, 9%12 , 40) * (A/F, 9%, 10)(c) A = [$2,000(F/A, 2.25%, 40)] * (A/F, 9%, 10)(d) None of the above