You deposit $700 in your savings account for a year. By the end of the year, the value of your deposit increases to $730. What interest rate is your bank paying on the savings account? Choose one: O A. 0.04% B. 0.23% O C. -4.11% D. 4.29%
Q: A loan of $245,000 is to be repaid in equal quarterly payments over a period of 6 years. If the…
A: Hi! thanks for the questions but as per the guidelines we can answer only one question at one time.…
Q: An annuity offers a payment of $5000 at the beginning of every three months for twenty years.…
A: here we determine the amount that would pay for this annuity today as follow by the following method…
Q: 7. After reaching the age of majority, a person who had entered into a contract when she was under…
A: disclaimer :- As you posted multiple questions we are supposed to solve the first one only. A…
Q: A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery…
A: Investment: It means the acquisition of assets or items required to fulfill the objective of…
Q: 1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The…
A: payback period is duration when a firm or company recovered its's investment.
Q: How much would be in your account in 8 years after depositing $2000 now? The annual interest rate is…
A: Calculate the future value as shown below Therefore, the correct option is (d)
Q: Determine the value of the maximum profit. O A. BD53,000 O B. BD52,500 O C. BD55,000 O D. BD48.000
A: Profit maximization refers to the level of sales at which profits are maximized.A typical firm's…
Q: 1. A company cannot create another company. O A) True O B) False
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: The King of France offers you an investment opportunity that would pay you $40 per year forever. If…
A: Answer: Given, Periodic return = $40 Yield to maturity = 4% = 0.04 The following formula will be…
Q: What are the annual payments necessary to pay a $100,000, 12-year loan if the loan rate is 8 %? * O…
A: In the question above, it is given that : Loan Amount = $100,000 Time period = 12 years Loan Rate =…
Q: Dhofar Energy Services has a Beta = 1.68 The risk-free rate on a treasury bill is current 4.4% and…
A: Given Dhofar energy services has Beta = 1.68 Risk-free rate on a treasury bill is currently(Rf) =…
Q: Question 6 What is the present worth of 5 payments of S700 if the interest rate is 5% and the first…
A: Present Worth is the value of the sum of money from the future or of the amount that is receivable…
Q: The first-year maintenance cost for a new automobile is estimated to be $100, and it increases at a…
A: Present value is calculated using following formula: P = A(1-(1+g)^n(1+i)^-n/1-g
Q: O A. $737 O B. $0 O C. $33 O D. $3 0000
A: Marginal revenue product(MRP) is marginal revenue(MR) times marginal product(MP) of the input. MR is…
Q: your home is S250000, but the replacement cost of the structure is $190000, how much homeowner's…
A: 1. Replacement cost is attached to your home insurance inclusion. Perhaps the main thing to realize…
Q: In 5 years, P 180,000 is needed for a building renovation. In order to generate this amount, a…
A: Answer: (d) P39,195
Q: 9. In how may months will a loan of P2.M be paid if the monthly payment is P94,146.94? Select the…
A: Loan amount=2000,000 Monthly payment= P94,146.94
Q: If the first payment of $12,000 is received now, what is the present worth of a certain contract,…
A: The present value method is an equivalency method in which a project's cash flows are discounted to…
Q: What would be the value of X if the project's IRR is 12%? O A. $725 O B. $532 O C. $475 O D.$383
A:
Q: What is the value of $600 at 12 percent interest for 7 years compounded continuosly? O A. $1356.54…
A: The compound interest is also known as interest earned on interest. When a person invests an amount,…
Q: Stan borrowed $5 000 one year ago. Now he has to repay $5 100. The interest Stan pays is O a. $5 100…
A:
Q: 10. How much are you willing to pay for one share of XYZ bank stock if the company just paid a 1.5$…
A: Given: The annual dividend paid by a company is = $1.5 annually The dividends increase by = 3%…
Q: O a) $1380 O b) $1420 Oc) $2270 O d) $1260
A: The total value of products and services generated by a country over the course of a fiscal year is…
Q: Your financial advisor tells you that if you earn the historical rate of return on a certain mutual…
A: It is given that the principal amount is 20,000. In three years it becomes 23,152.50. In order to…
Q: Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay…
A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…
Q: 4. It was the initial legislated sharing agreement for share tenancy. * O A. 50-50 B. 60-40 O C.…
A: Agreement: It refers to a contract under which people set various rules and regulations between each…
Q: A young woman placed $1000 (at time 0) in a saving account paying monthly interest After one year,…
A: When the effects of compounding over time are taken into account, the effective interest rate is the…
Q: If I OMR is equal to 6.1 USD, then find the value of 1620 OMR value in USD. O a. 265.57 O b. 9882 O…
A: Exchange rate measures the value of one country's currency to another country's currency.
Q: The owner of a cemetery plans to offer a perpetual care service for grave sites. The owner estimates…
A: The correct answer is given in the second step.
Q: If the discount rate on 3-month commercial paper is 4.9% while the yield on 3-month CDs is 5%, the…
A: Discount rate: The rate of return used to discount future cash flows back to their present value is…
Q: Instead of taking a trip for $3,000, you decide to save your money. How much will you have if you…
A: One can enjoy the interest income if rather than going out, one save and invest. Here comes the…
Q: A car retail store reduces prices by 15 percent each year until the cars are sold. What will a…
A: The compound interest is a concept based on earning interest on interest , giving rise to a…
Q: If the MPS is .30, MPC is Select one: O a. 1+.30 = 1.30 O b. None of the options O c. 1-0.3 =0.7…
A: Marginal propensity to consume (MPC) refers to the value of additional consumption due to increase…
Q: If a corporate bond with a face value of $20,000 pays yearly coupon payments of $500, what is the…
A: Given Face value of bond = 20000 $ Coupon payment = 500 $ Yield on bond = coupon payment / face…
Q: QUESTION 8 Cash leases provide the landlord with steady income in the form of cash rent payments. O…
A: Cash lease provide the landlord with steady income in the form of cash rent payment. This statement…
Q: What is the present value or price of a $150 annual perpetuity if the returns on similar contracts…
A: Given; Value of annual perpetuity= $150 Discount rate= 7% Formula to calculate present value:-…
Q: What is the current value of a security that pays $500 per year for 7 years if similar investments…
A:
Q: You can buy a mountain bike on sale for only $562.97. What is the percent markdown if the original…
A: Sale price= $562.97 Original price = $659.50
Q: son If you would like to have $400000 for your retired and you save equal amount monthly in a saving…
A: * SOLUTION :- Given that ,
Q: 1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The…
A: Option (D).
Q: A real estate company expects to earn $100M on a project they plan to invest in. if the company…
A: Answer: Value of a quarter of the sum=14×100Value of a quarter of the sum=$25M The following formula…
Q: Find the present value of a future value of $420 at 5.5% annual simple interest for 2 years? O a.…
A: In the question above, it is given that: Future Value Or Amount = $420 Rate of Interest (r) = 5.5%…
Q: A bond has a face value of $1000 and a coupon rate of 5.2%. What would the rate of return be if the…
A: here we calculate the rate of return by using the given information , so the calculation of the…
Q: If consumption is $30,000 when income is $40,000, and consumption increases to $34,000 when income…
A: Marginal propensity to consume (MPC) refers to the value of additional consumption due to increase…
Q: If you borrow $4,300 to buy a car at 9% per year compounded monthly, to be repaid over the next six…
A: Given Information P = $4300Rate (r) = 9% per year = 9/12 = 0.75% Per month r =…
Q: Al approximately what interest rate, i, will a present investment of $2000 increase to a future…
A: Answer; Correct Option is (a) 7%
Q: Consider the following sequence of deposits & withdrawals over a period of 4 years. If you earn 10%…
A: Economic equivalence is a fundamental concept that underpins engineering economy computations.…
Q: If you are expecting to get OMR 32501 at the end of 3 years. Calculate its present value if the…
A: 1) future value after 3 years OMR 32501 interest rate = 9% compounding quarterly effective annual…
Q: If consumption is $30,000 when income is $35,000, and consumption increases to $35,000 when income…
A: Marginal propensity to save (MPS) refers to the value of additional savings due to increase the…
Q: f the interest rate on your savings account is 5%, then you would be indifferent between accepting…
A: Given interest rate = 5 % Value today = 100 $ Value after 1 year = 110 $ If money is deposited…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The Turners have 10 years to save a lump-sum amount for their child’s college education. Today a four-year college education costs $75,000, and this is expected to increase by10%per year into the foreseeable future. a. If the Turners can earn 6% per year on a conservative investment in a highly rated taxfree municipal bond, how much money must they save each year for the next 10 years to afford to send their child to college? b. If a certain college will “freeze” the cost of education in 10 years for a lump-sum of current value $150,000, is this a good deal?The annual cost to maintain a cemetery plot is $75. If interest is 6% how much must be set asideto pay for perpetual maintenance?a. $1,150b. $1,200c. $1,250d. $1,300A parent on the day that child is born wishes to determine what lump sum would have to be paid into an account bearing interest of 5% compounded annually, in order to withdraw P20,000 each on the child’s 18th, 19th, 20th, and 21st birthdays? How many equal payments does the problem have? A. 17 B. 4 C. 5 D. 18
- Housing PricesConsider a 1,500 square foot house, which rents monthly for $0.75 per square foot. Prevailing interest ratesare 5 percent, and remain constant(a) Assuming the rent is constant, and that you cannot resell the home, what is the most you’d be willingto pay for it?(b) Now suppose you could sell the house after 4 years, what is the most you’d be willing to pay for it?(c) Suppose that the house requires a constant annual maintenance cost of $500 to last forever, how muchare you willing to pay for it today?(d) If rent is not constant, but grows at a rate of 0.5 percent per year, how much would you pay for thehouse? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sureYou purchased a stamping machine for $100,000 to produce a new line of products. The stamping machine will be used for five years, and the expected salvage value of the machine is 20% of the initial cost. The annual operating and maintenance costs amount to $30,000. If each part stamped generates $12 revenue, how many parts should be stamped each year just to break even? Assume that you require a 15% return on your investment.(a) 5,000(b)4,739(c) 4,488(d)2,238A firm is considering purchasing equipment to manufacture a new product. The equipment will cost $3M, and expected net cash inflowsare $0.35M indefinitely. If market demand for theproduct is low, then over the next five years thefirm will have the option of discarding the equipment on a secondary market for $2.2M. Assume thatMARR = 12%, s = 50%, and r = 6%. What isthe value of this investment opportunity for the firm?
- Two oil wells are for sale. The first will yield payments of $11,400 at the end of each of the next 11 years, while the second will yield $6,100 at the end of each of the next 24 years. Interest rates are assumed to hold steady at 7.9% per year over the next 24 years. Which has the higher present value? the first oil wellthe second oil well they are the samecannot be determinedThis year is 2023. You have saved $20,000 in your savings account to buy a new home. In addition, you also plan to withdraw the maximum from your Registered Retirement Savings Account (RRSP) under the Home Buyer's Plan (HBP). What would be the minimum conventional mortgage you could assume? Select one: a. $220,000 b. $140,000 c. $175,000 d. $225,0002. It is estimated that depositing 20.000 pesos every end of the 6 months in a sinking fund that gives an interest rate of 14% compounded semi-annually, will provide the money that could replace a machine at the end of 10 years. If the machine has no salvage value, what is the cost of replacement. a. $19,909.85 b. 729.546.06 c. 889.754.30 d. 746.852.58
- You can buy a property today for $3 million and sell it in 5 years for $4 million. (You earn no rental income on the property.) a. If the interest rate is 8%, what is the present value of the sales price? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places.) b. Is the property investment attractive to you? c-1. What is the present value of the future cash flows if you also could earn $200,000 per-year rent on the property? The rent is paid at the end of each year. Note: Do not round intermediate calculations. Enter your answer in millions rounded to 3 decimal places. c-2. Is the property investment attractive to you now?Find the present worth today in real value corresponding to the cur- rent values shown below for a 4 percent ination rate and a 4 percent interest rate. a. $400 three years from now b. $400 three years ago c. $10 next year d. $350 983 in 10 years from now e. £1 one thousand years ago the answer is 292 f. $1 000 000 000 three hundred years from nowTom and Sue had W-2 earnings of $100,000 last year. They deposited $5,000 into each of their IRAs from money that was in their checking account. They also sold their five year old car for $1,000 less than it was worth. Due to a slow down in the housing market, the value of their home decreased by $25,000. What is their change in net worth? a. No change b. Minus $19,000 c. Minus $26,000 d. Plus $9,000 e. Plus $74,000