You just signed a business consulting contract with one of your clients. 1l1e client will pay you $80.000 a year for five years for the service you will provideover this period. You anticipate the general inflation rate over this period to be 5%. If your desired inflation-free interest rate ( real interest rate) is to be 3% what is the worth of the fifth payment in present dollars? The client will pay the consulting fee at the end of each year.

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…

Q: Suppose you need to accumulate GHȼ100,000 in 10 years. You plan to make a deposit in a bank now, at…

A: The future value of the growing annuity is the future worth of a cash flow series growing at a…

Q: You have $11,489.64 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Given: Present value (PV)= $ 11489.64 PMT = $5000 Future value (FV) = $200, 000. Rate = 11% = 0.11

Q: You take out a 5-year loan of $20,000 from a bank today, where repayments are made at the end of…

A: Given, The loan amount is $20,000 Term of loan is 5 years Nominal rate is 8% compounded monthly.

Q: You would like to have ​$   59,000 in   15 years.  To accumulate this​ amount, you plan to…

A: The concept of time value of money tells us that worth of money keeps on changing with passage of…

Q: You have just won a lawsuit and, as part of the judgement, you will be receiving semi-annual…

A: Provided a certain rate of interest, present value is actual value of a potential amount of money or…

Q: You make $10,000 deposit 1 year from now, $15,000 deposit 3 years from now and $20,000 deposit 5…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: 2. You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the…

A: We will make use of the excel function NPER to get this answer. This function returns the number of…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with…

A: loan amount (p)=$10,000 n=11 payment m=4 pmt=$360.02 r=5.9%

Q: You have $35,009.41 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: According to the time value rule, dollar money available today is worth more than the same dollar…

Q: Peter Lynchpin wants to sell you an investment contract that pays equal $13,500 amounts at the end…

A: Value we pay today is present value of cashflows

Q: B. A financial company will pay you $70,000 now in exchange for annual payments of $11000 that you…

A: Interest rates         The percentage charged over the principal amount by the lender for the money…

Q: You invest $10,000 into a money market account that pays interest on a semi-annual basis (e.g.,…

A: We use NPER function in excel by taking present value as 10000 and future value as 20000 and…

Q: What is the combined present value of cash you will receive from your clients if r = 6% APR with…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: You just signed a business consulting contract with one of your clients. The client will pay you…

A:

Q: How many years will it take to reach your goal?

A: Year Opening Balance ($) Interest % Interest Amount ($) Additional Deposit ($) Balance at year end…

Q: a. If you take the first option, $7,000 per month for two years, what is the present value? (Do not…

A: Present Value: It represents the present worth of a future amount or a future annuity stream. It is…

Q: Suppose that an insurance agent offers you a policy that will provide you with a yearly income of…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: You are considering purchasing an investment contract that will eventually pay you $4000 per year at…

A: Price we should pay is present value of cash flows

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The given problem can be solved using FV function in excel. FV function computes accumulated amount…

Q: Your client currently has $7,600 in a 401K investment account. They contribute $200 a month into…

A: Current Value in Account = 7600 Monthly Contribution = 200 Monthly Compounding, Annual Return = 5.3%…

Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…

A: The question is based on the concept of Financial Management.

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 6 years with monthly…

A: Unpaid balance can be calculated by using loan amortization formula mention below. Unpaid loan(Loan…

Q: You found out that now you are going to receive payments of $9,000 for the next 11 years. You will…

A: Annual Payments = $9,000 Time period = 11 years Annual interest rate = 11%

Q: You have €42,180.53 in a brokerage account, and you plan to deposit an additional €5,000 at the end…

A: Working note:

Q: You just opened a brokerage account, depositing $4,000. You expect the account to earn an interest…

A:

Q: You purchase a TIP note with an original principal amount of $1,000,000 and a 10 percent annual…

A: The interest is an expected minimum return on the investment made by the investor. The coupon…

Q: You were buying a House for $190,000 with a down payment of $57,000. The loan will be paid back over…

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: You expect to receive $150,000 per year on a contract that will last 5 years. You are trying to…

A: Present value of future cash inflows will be equal to the worth of contract today.   Worth of…

Q: You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two…

A: The current worth of the cash flows or an asset after discounting is termed as the present value.

Q: 0. You expect to earn 12% annually on the account. How many years will it take you to reach your goa

A: Information Provided: Present value = $40,000 Payment additional every year = $5000 Future value =…

Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…

A: Here the given rate is APR and as it is compounded monthly we need to find the EAR. EAR =…

Q: You have $9,259.70 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Given: Rate = 13% PMT = -6000 Present value = -$9,259.70 Future value = $260,000

Q: Your target is to earn an annualized rate of 5%, what is the most you can pay for a 135-day Treasury…

A: Provided a certain rate of return, present value (PV) is the current value of a potential amount of…

Q: A leading broker has advertised money multiplier certificates that will triple your money in nine…

A: future value is the value of a current asset at a future date based on growth rate and required rate…

Q: You have $34,256.85 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: Using NPER function in excel, this can be ascertained and the following inputs are used for…

Q: You are planning to save for retirement over the next 30 years. To do this, you will invest  K700 a…

A: Time Period 30 Stock Return  10% Bond Return 6% Amount In Stock       K 700.00 Amount In…

Q: You just signed a business consulting contract with one of your clients. The client will pay you…

A: Inflation free interest rate is that rate which has been adjusted for inflation. It is calculated…

Q: You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two…

A: Given, Interest rate = 9% per annum compounded monthly = 0.75% per month   Option 1 = 66000 each…

Q: What is the comparable salary today, assuming an inflation rate of 6% compounded annually?

A: Insurance: Insurance is a type of risk covering instrument which a person can avail to cover it's…

Q: If the interest rate is 9 percent compounded monthly, what is the value today of each option?

A: Present Value: It represents the present worth of the future sum of the amount or future annuity…

Q: You have just received a windfall from an investment you made in a friend's business. He will be…

A:

Q: Suppose that you earn $45,600 per year. What is your monthly salary? Assume that you deposit 10% of…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: You have $33,556.25 in a brokerage account, and you plan to deposit an additional $5,000 at the end…

A: given, FV = $220000 r= 12% time line

Q: aned today. What will be the size of 10 annual payments that you should pay to a loan of ₱10,000, if…

A: The loans are paid by the annual equal installments that carry payment of the principal amount and…