If money is worth 12% compounded monthly, determine the present value of the following: a. An annuity of 10,000 payable monthly for 60 years b. An annuity of 10,000 payable monthly for 100 years.
Q: Fiat money has an intrinsic value based on the full faith and trust in government institutions. ...
A: Fiat money - This type of money is not backed by any commodity such as gold or silver , but such mo...
Q: 6. Mommy Hai-dee, Inc. as of yearend of 2019 has a Total Working Capital of Php 3,000,000.00 and wit...
A: In the book value method, we find the book value of the firm, which is considered as the value of th...
Q: P= $140 R= 3% T= 2 Year Find the simple interest owed for the use of the money. Assume 360 days in a...
A: P = $140 R = 3% T = 2 Year
Q: A Treasury bond maturing on December 15, 2020 is yielding 3.45% and is priced at $1,124.36. What is ...
A: Bond price = $1124.36 F = Face value = $1000 r = 3.45% Let C = Coupon n = 5 years
Q: The 2-month interest rates in Switzerland and the United States are, respectively, 1% and 2% per ann...
A: In the given question it is given that Spot rate is 1.0500 and the future price is also 1.0500 hence...
Q: Determine the effective rates of interest for the following nominal rates of interest: 9% compounded...
A: To Find: Effective interest rate
Q: Consider a project that requires an initial investment of $105,000 and will produce a single cash fl...
A: Initial Investment = 105,000 Cash flow in 4 year = 154,000 N = 4
Q: In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares out...
A: Enterprise value is also known as firm value and this is the market value of a company or a business...
Q: Q1:Compare the alternatives below using future worth analysis at i = 8% %3D per year using LCM. P Fi...
A: P : First Cost = -23,000 Annual Cost = -4,000 Salvage value = 3,000 N = 3 years Q: First Cost = -3...
Q: An industrial plant bought a generator set for P90,000. Other expenses including installation amount...
A:
Q: The bid rate of bank A on Euro currency is $0.45, and the ask rate of the currency is $0.47. The bid...
A: The bid ask spread percentage is calculated as bid ask spread divided by bid rate
Q: a) Give the arguments for active portfolio management. b)What are the reasons which cause investors ...
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts a...
Q: Match the type of bank income (revenue) with the associated source. Revenue received from wealth man...
A: Interest Income: It is the main source of Income for banks and financial institution, interest recei...
Q: my house cost $249,900 mỹ down payment is 20% my interest rate 3.65% my loan type is 30 years. what ...
A: In United States, Property tax is different for different property, in case of residential property,...
Q: If you initially invest $3500 in an account that earns 4.7% interest compounded daily, how much will...
A: Initial investment (PV) = $3500 Interest rate (r) = 4.7% Number of compounding per year (m) = 365 Pe...
Q: In bankruptcy, which of the following lose (choose all that apply)? The community Clients/suppliers ...
A: Bankruptcy is the state where an individual or a business organization is bound to surrender itself ...
Q: B) WWE CORP. needs to replace an old machine with a new, more efficient model. The new machine bein...
A: In the computation of NPV of such proposal, we should consider the annual cash flow post-tax and sho...
Q: 14.) The Virginia Corporation recently issued 10-year bonds at a price of $1,000. These bonds pay $6...
A: The current price of a projected amount of money or series of payments with a predetermined rate of ...
Q: CHAPTER 10: FINANCIAL FORECASTING AND PLANNING QUESTION AND ANSWER ST-1. (Financial forecasting) Use...
A: In financial forecasting, the company's future performance is estimated in present. It is a process ...
Q: APPLY THE CONCEPTS: Net present value and Present value index Sutherland Engineering is looking to i...
A:
Q: Please view the following video before answering this question. Video Solution: 03.03-PROO4 Click he...
A: Data given: Par value = $10,000 Coupon rate =8% p.a. (payable quarterly) n=3 years Period = 3*4 = 12...
Q: Is there a difference between arithmetic and geometric average returns? Is it true that they converg...
A: Geometric average is generally used by investment professionals to measure the performance of portfo...
Q: Recently, ABC Ltd learned that one of its own minority shareholders registered a new company and was...
A: Minority shareholders are equity holders in a company who do not have voting power because they poss...
Q: Distance, in miles 0-200 201-400 401-600 601-800 801-1000 Price per 100 Ibs $100 $120 $200 $240 $400...
A: Distance = 420 miles From the table given, Price per 100 lbs for 401-600 miles = $200
Q: Suppose you invest $25500 for 12 years paying 2.25% annual interest. How much will you have at the e...
A: The future value is the amount that will be received at the end of a certain period. The future valu...
Q: Suppose a savings account pays 7% annual interest with interest compounded daily (assume there are 3...
A: Daily compounding Nominal rate= 7% Number of compounding periods = 365 Deposit = 2578 N = 3285 days ...
Q: QRW Corp. needs to replace an old machine with a new, more efficient model. The new machine being c...
A: A capital budgeting project is a long-term project undertaken by the company and involves some addit...
Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five a...
A: Present value of annuity is the current value of the future payments that are calculated using the i...
Q: Although each of the projects has different characteristics, he decides to pursue _______________.
A: Present Worth: It represents the present value of future costs and benefits arising from a project. ...
Q: The investor has set aside an amount of Rs 5,00,00 to be equally divided into aggressive and defensi...
A: Trigger point is 20%
Q: Distance, in miles 0-200 201-400 401-600 601-800 801-1000 Price per 100 Ibs $100 $120 $200 $240 $400...
A: Cost = Distance rate * Price per 100 Lbs
Q: What is the Discounted Present Value (DPV) if you expect to receive $8,000 in year 1, $9,000 in year...
A: Discounted present value is the value of money that will be received in future , the interest rate ...
Q: Kumba Iron Ore (Kumba) is a major supplier of iron ore to the steel industry and the company is the ...
A: The computation of the present value of net cash inflows from investment to determine investment eff...
Q: Your cousin has asked for your advice on whether or not to buy a bond for $995, which will make one ...
A: Here, Buying Price of Bond is $995 One Time Payment after 5 years is $1,200 Time Period is 5 years
Q: A long term asset was purchased for $200,000 with a 10 year life. At the end of 8 years, the accumul...
A:
Q: A charity will be donated by a wealthy man to provide annual scholarships to deserving students. The...
A: Annual payment for first 5 years (A) = $120000 Quarterly payment for next 5 years (Q) = $30000 (Star...
Q: Presented below are financial statements (except cash flows) for two not-for-profit organizations. N...
A: Answer - Part 1 - Program Expenses Ratio - = Total Program Service Expenses / Total Expenses. ...
Q: , how much interest will you earn on a $1,000 deposit for: a. 8 months.
A: Interest: It refers to the monetary charge for borrowing a sum of money from the lender. It is usual...
Q: Why should shareholder wealth maximization be the overriding objective of the management?
A: We know that shareholder invest the money into the business and become the owner of the company, the...
Q: what are hedge funds role with direct listings?
A: A direct listing is a process by which a company can go public by selling existing shares instead of...
Q: Find the APR (rounded to the nearest tenth of a percent) for the loan.Purchase a living room set for...
A: Part 1: Cost of set = $3,100 Rate = 12% Time period = 4 years
Q: Daryl borrowed $5,440 for 4 years. If the loan's annual simple discount rate was 4.1%, how much did ...
A: Amount borrowed (P) = $5,440 Time (T) = 4 years Rate (R) = 4.1% Total amount to be returned = Princi...
Q: Pls help with below homework.
A: Payback period refers to the amount of time it takes for a business or firm to recover the initial c...
Q: Suppose you invest Rs 600 in IBM and Rs 400 in Merc for a month. If the realized return is 2.5% on I...
A: Overall return (%) on portfolio can be calculated as: = Sum of return on both the stocks / Initial i...
Q: Corporations often offer ________ to investors as some tangible evidence that the corporation is doi...
A: The firms get capital form different sources such as equity, debt and loans from any financial insti...
Q: If beta of Stock A with market is 0.72 and and the market variance is 225 , the covariance between A...
A: Beta of stock A = 0.72 Market Variance = 225 Covariance between A and B = 202.5
Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The f...
A: An annuity is a series of cash flows that involve an equivalent periodic amount over a specific time...
Q: Given a principal amount of P500,000 and an interest rate of 5.08% per year, construct a loan amorti...
A: Loan Amount is P500,000 Interest rate per year is 5.08% Time period is 5 years To Prepare: Loan A...
Q: launching new software with in 5 months at a cost of $ 5000 can be categorized under a. Scope ...
A:
Q: If you initially invest $2200 in an account that earns 2.25% interest compounded continuously, how m...
A: Initial investment (P) = $2200 Interest rate (r) = 2.25% Period (t) = 3 Years Mathematics constant (...
*Urgent, need in 5 mins please*
If money is worth 12% compounded monthly, determine the present value of the following:
a. An
b. An annuity of 10,000 payable monthly for 100 years.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityFind the amount accumulated FV in the given annuity account. (Assume end- of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $300 is deposited monthly for 10 years at 5% per year in an account containing $9,000 at the start FV = $ Need Help? Read It Watch ItFuture Value of an Annuity Find the future value of these ordinary annuities. Compunding occurs once a year. a) $500 per year for 8 yrs at 14% b) $250, 4yrs,7% c) $700 4yrs, 0% d) rework parts a,b,c assuming they are annuities due. please show me steps. Thank you.
- How much more is a perpetuity of $1,500 worth than an annuity of the same amount for 20 years? Assume an interest rate of 10% and cash flows at the end of each period. O $2,229.65 O $1,486.44 O $1,635.08 $2,000.00Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $200 is deposited monthly for 10 years at 6% per year in an account containing $9,000 at the start FV = $ 49150 Need Help? Read It Watch It Submit AnswerFind the amount and present value of an annuity of 440 payable every three months for 15 years and 3 months, if money is worth 5 ½%, m=4
- If you deposit $100.00 in an account, every "month) for the next five (5) years earning 6%, calculate the future value of this annuity 5,000.00 6,050.25 6,977.00 7,300.25An annuity in perpetuity with effective annual interest rate i > 0 has present value $1, 000. Find i if the annuity pays $52.50 at the end of every 6 month period, with the first payment at the the end of year. please hand written solution thankuFind the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest cent.) $2,200 is deposited quarterly for 20 years at 3% per year FV = $ Need Help? Read It Watch It Submit Answer
- Find the amount accumulated FV in the given annuity account. (Assume end-of-period deposits and compounding at the same intervals as deposits. Round your answer to the nearest ten dollars.) $200 deposited monthly for 15 years at 4% per year FV = $FUTURE VALUE OF AN ANNUITY Find the future values of these ordinary annuities.Compounding occurs once a year.a. $500 per year for 8 years at 14%b. $250 per year for 4 years at 7%c. $700 per year for 4 years at 0%d. Rework parts a, b, and c assuming they are annuities due.Find the future value of the following ordinary annuities. Payments are made and interest is compounded as given. R = $9000, 5% interest compounded annually for 15 years What is the future value of the ordinary annuity? $ (Round to the nearest cent.)
