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- A. A Company wants to deposit $1.000.000 per vear in an investment which earns interest of 10 percent per year. Assume the first deposit is made at the end of the current year and addidtional deposits at the end of each following year. a) To what sum will the investment grow at the time of the 10th deposit? b) How much interest will be eamed Page: 1 of 1 Words: 65 回回昆 100% - P Type here to search 7:06 PM (p岁 5/30/20214. A company has to replace a present facility after 15 years at an outlay of ETB. 5,00,000. It plans to deposit an equal amount at the end of every year for the next 15 years at an interest rate of 18% compounded annually. Find the equivalent amount that must be deposited at the end of every year for the next 15 years. ltinthe e theX tlon An investment ofA company would like to have $400,000 in 6 years. How much should be invested semiannually into an account paying 3.6% compounded semiannually? 7. Identify the type of problem. a. Present Value with compound interest b. Future Value of an Annuity c. Present Value of an Annuity d. Amortization e. Sinking Fund 8. Answer the question in the problem. a. $30,681.38 b. $29,754.02. c. $34,245.54 d. $30,160.79 c. $28,541.46
- Calculate the future value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2 3. Initial Annual Investment Rate $ 7,200 5,200 8,200 8% 8% 8% Interest Compounded Annually Semiannually Quarterly Period Invested 9 years 6 years 3 years Future ValueQ1/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment, at the end of four years, would be $70,000. The company uses a discount rate of 14%, and the initial investment is $290,000. Calculate the NPV of the investment. Present value of an ordinary annuity of $1: 12% 13% 14% 15% 1. 0.893 0.885 0.877 0.87 2. 1.69 1.668 1.647 1.626 2.402 2.361 2.322 2.283 4 3.037 2.974 2.914 2.855 3.605 3.517 3.433 3.352 Present value of $1: 12% 13% 14% 15% 0.893 0.885 0.877 0.87 2. 0.797 0.783 0.769 0.756 0.712 0.693 0.675 0.658 4 0.636 0.613 0.592 0.572 0.567 0.543 0.519 0.497Calculate the future value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3 Initial Annual Interest Investment Rate," Compounded $ 10% Annually 12% 8% 7,400 5,400 8.400 Semiannually Quarterly Period Invested 7 years 4 years 4 voorn A Future Value
- An investment of $11,550 is deposited for 3 years at 2.2% compounded monthly. At this point, the interest rate is changed to 1.95% compounded semi- annually. The investment earns interest for 5 more years. What is the value of N₂? now $11,550 Select one: N₁ = ? IY₁ = ? CY₁ = ? O a. 5 years O b. 16 compounding periods O c. 10 compounding periods O d. 8 compounding periods 3y FV₁ PV₂ N₂ = ? IY₂ = ? CY₂ = ? 8y FV₂Q1/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment, at the end of four years, would be $70,000. The company uses a discount rate of 14%, and the initial investment is $290,000. Calculate the NPV of the investment. Present value of an ordinary annuity of $1: 12% 13% 14% 15% 0.893 0.885 0.877 0.87 2 1.69 1.668 1.647 1.626 3 2.402 2.361 2.322 2.283 4 3.037 2.974 2.914 2.855 3.605 3.517 3.433 3.352 Present value of $1: 12% 13% 14% 15% 1 0.893 0.885 0.877 0.87 0.797 0.783 0.769 0.756 3 0.712 0.693 0.675 0.658 4 0.636 0.613 0.592 0.572 0.567 0.543 0.519 0.497 Q2/ A company is evaluating an investment. The company uses the straight-line method of depreciation. Use the following information to compute the accounting rate of return. Show your calculations and round to one decimal place. Project Investment SR875,000 Residual value Operating income: Year 1 120,000 Year 2 120,000 Year…6. A company wishes to borrow $7500 000 for 8 years. One source will lend the money at j2 = 9% if it is amortized by semi-annual payments. A second source will lend the money at j2 returned in a lump sum at the end of 5 years. If the second source is used, in order to pay back thel principal, a sinking fund will be established by semi-annual deposits that accumulate at j2 = 3.9%. = 7.6% if only the interest is paid semi-annually and the principal is (a) What is the semi-annual cost under the amortization plan? (b) What is the semi-annual cost under the sinking fund plan? (c) Which plan should the company choose, and how much can they save semi- annually by using the better plan?
- 4. Leti Fuschia decided to invest P100,000.00 in Road Dirty Inc., for a period of 6 years. Determine the final amount for the following interest rates: a. 5% interest rate, compounded weekly b. 6% interest rate, compounded bi-monthly c. 7% interest rate, compounded quarterly d. 8% interest rate, compounded bi-annually1. RM600 is invested for 4 years 10 months. This investment is offered an interest rate of 9% compounded every three months for the first 2 years and 7% compounded monthly for the rest of the period.(No use excel) Calculate a)the amount at the end of the investment period.(RM873.66) b) the interest earned.(RM273.66)A person to start a project 8 years ago placed a deposit of ¢ 1,500,000.00 in a financial institution that recognized him during the first 3 years a 5% capitalizable monthly, 2 following years an 8% capitalizable quarterly, and the rest of the term a 7% capitalizable bimonthly, it is requested to make and determine:a) How much do I accumulate in the total term of the investment? b) Do you calculate the effective annual rate that produced the investment?