Boiser deposited part of her royalty in a bank at the end of each year for 10 years. The bank paid 2.5% interest compounded annually. If she deposited PhP200,000 every year, how much did she have deposited, including the interest, after her 10th deposit

Boiser deposited part of her royalty in a bank at the end of each year for 10 years. The bank paid 2.5% interest compounded annually. If she deposited PhP200,000 every year, how much did she have deposited, including the interest, after her 10th deposit

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 15E

See similar textbooks

Related questions

Q: Last year the Rondoelea Products Company had $142 million in annual sales and a net profit margin…

A: EBIT = [ (Sales x net profit margin) / (1 - tax rate) ] + (Amount of debt * Interest rate) EBIT =…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: Cash flows Cash flows include only cash dealt items. In general, while calculating net earnings,…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: Capital budgeting is referred to as the process of assessing long-term decisions so as to identify…

Q: 5a. An elective project is currently under review. It requires an initial investment of $116,000 for…

A: The rate of return: The rate of return or the internal rate of return (IRR) is the rate at which the…

Q: An entrepreneur needs thousand of dollars to launch the global to lend him the money today (n=0) at…

A: Effective rate is the rate of interest considering the impact of the compounding of the interest…

Q: Project L requires an initial outlay at t = 0 of $66,000, its expected cash inflows are $13,000 per…

A: Payback period is the amount of time required to recover initial investment. Payback period =Initial…

Q: What are the 3 stages of a typical firm's business cycle in terms of ROIC and WACC? In which stage…

A: A call option is an agreement between a buyer and a seller to buy a specific stock at a specific…

Q: The King Carpet Company has $2,910,000 in cash and a total of $12,780,000 in current assets. The…

A: The plan to reduce cash would have impact on both current assets and current liabilities which would…

Q: You are assigned to determine a fair value for AdvBioTech (ABT) Corporation. You determined that…

A: Market multiples approach It is a valuation method based on the assumption that similar firms have…

Q: (Margin Purchase and Selling Short) You are very optimistic about the personal computer industry, so…

A: Margin purchase is the strategy of borrowing funds from a bank or a broker to buy stocks. Short…

Q: price would you expect U

A: Shareholder's equity shows the amount which is owner invested in the business. It can be done either…

Q: (Calculating Annuities) You are planning to save for retirement over the next 30 years. To do this,…

A: Stock account investment per month (S) = $700 Bond account investment per month (B) = $300 Stock…

Q: A contractor imported a bulldozer for his job, paying Ph 250000 to the manufacturer. Freight and…

A: Depreciation is an accounting term for a method of allocating a tangible or physical asset's cost…

Q: JK Inc. has bonds with a coupon rate of 5.55%, semiannual payments. If the YTM is 4.9%, and time to…

A: Solution:- Current price of bond is the present value of future amounts receivable from bond. Future…

Q: The 6-month interest rate in the US is 12.25% p.a. The 6-month interest rate in Canada is 15.25%…

A: Solution : Under Interest rate Arbitrage we should take the loan from Lower rate interest country…

Q: Which of the following has the most effective annual rate of interest? A. 12.50 % compounded…

A: Effective annual rate (EAR) is the actual rate of interest earned after taking the effect of…

Q: ation tax shield? 5. Calculating Depreciation A piece of newly purchased industrial equipment costs…

A: Solution : Deprecation rate was fix under MACRS Table which was mentioned below & also…

Q: calculate the payment amounts when the mortgage is below are renewed for a second term. Assume…

A: To Find: New Payment

Q: Find the present value of a deferred annuity of P500 a year for 10 years that is deffered for 5…

A: The present value of deferred annuity can be calculated with the help of present value of annuity…

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…

A: Net Present Value: It is tool used in capital budgeting decision to estimate profitability of a…

Q: Explain what type of firms a Buyout Fund (or a Private Equity Fund) might target as part of a…

A: A leveraged buyout (LBO) is a type of business acquisition in which the vast majority of the cost of…

Q: ART A: An investor the option of either investing a sum of money at an annual interest rate of 8.3%…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 4. Complete the decision rule for the ERR method. If, then the project is economically justified.

A: Project is economically Justified in these cases:

Q: In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is…

A: Interest rate (i) = 10% Let's equate the future values of cashflows at year 7 in both the diagrams…

Q: 5. What amount should be invested now at 6% per year, compounded annually, to generate a retirement…

A: Present value will be the maximum amount that can be saved or invested now to generate a steady…

Q: There are three stocks in a price-weighted index: A $100 B $20 C $60 a. What is the average value…

A: Price-weighted index: A price-weighted index is a stock index in which each company's stock is…

Q: Consider an investment with the following cash flows: Year Cashflows PV of P 1 @ 14% 0 (P 31,000)…

A: Solution : Profitability index means Profit to Investment ratio in present worth of return on the…

Q: Carlos and Connie own a farm as tenancy by the entirety (TBE). The farm is currently valued at $2…

A: Answer:- A) If Connie dies, $1m is included in her gross estate for estate tax purposes. This…

Q: Q.No. 3 Deep Manufacturers information is provided for the production of two product lines named as…

A: Given, The information of Deep Manufacturers with production of two product lines namely pen and…

Q: Milhouse, 22, is about to begin his career as a rocket scientist for a NASA contractor. Being a…

A: Amount required to buy boat on retirement is $300,000 time till retirement is 43 years Annual amount…

Q: Elen Serug needs P70,000 to repair her roof. Find the face value of the note that will provide the…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: a. How far away is the horizon date? I. The terminal, or horizon, date is the date when the growth…

A: Dividend discount model refers to a stock valuation model which is used by the company for…

Q: Your firm has net income of $315 on total sales of $1,260. Costs are $700 and depreciation is $110.…

A: Net income = $315 Depreciation = $110

Q: Jim has an annual income of $240,000. Jim is looking to buy a house with monthly property taxes of…

A: Present Value: It is the current value of a future stream of money at a specified rate of…

Q: Considering the recent criminal conduct of Bernard Madoff in the world of finance, indicating…

A: The recent criminal conduct of Bernard Madoff was based on a Ponzi scheme. Mr. Madoff defrauded…

Q: Financial projections for a Start Up Company (baba nyonya restaurant). Thank you ;)

A: You'll need a few important papers to create financial projections for startups: a balance sheet, an…

Q: Which of the following statements is false? A. The sovereign credit rating is a risk of a…

A: A bond is an fixed market instrument that carries less risk than equity. To check creditworthiness…

Q: advantage of offshore trust in terms of taxation?

A: High-net-worth (HNW) clients generally see offshore trust corporations as the pinnacle of competent…

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion.…

A: Given in the question is the below information regarding, Wild Rapids Water Park issues $40.0…

Q: Statement True False When returns on Stock A increase, returns on Stock B also increase. In general,…

A: Standard deviation is a measure of risk. The standard deviation or risk of a portfolio is least when…

Q: As an analyst, how do you go about choosing a peer group of companies for an individual company?

A: Peer groups form the basis of payroll exercises for many companies. The CEO's salary benchmark…

Q: A twenty-year annuity pays $940 per month at the end of each month. For the first seven years, the…

A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…

Q: You would like to start saving $ for retirement. Assuming you are now 22 years old and you want to…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Analyze below Cash Flow and compute for the unknown value. ... EOY (end of year) $5 $5 $5 $10 $15…

A: Here, Interest Rate (r) is 10% Compounding Period (m) is Semi Annual i.e 2 Payment Period (p) is…

Q: Dave deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year,…

A: Amount deposited in year-2 is P4,000 Amount deposited in Year-3 is P4,500 Amount deposited in year…

Q: The current price of a stock is $22, and at the end of one year its price will be either $29 or $15.…

A: Here, Current Price = $22.00 Upside = $29.00 Downside = $15.00 Rate of interest = 3% compounded…

Q: 1. Tim deposits P750 every end of 3 months in an account paying 5% interest compounded quarterly.…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Homework3: A company produces organic products (Fertilizes) and needs to construct a building to…

A: The process of evaluating a potential project or investment is known as capital budgeting. Capital…

Q: A raffle is taking place and tickets are being sold for $5. Everyone who enters will have an equal…

A: The expected profit of a project is the amount of return that can be expected if it is chosen for…

Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

100%

Dr. Boiser deposited part of her royalty in a bank at the end of each year for 10 years. The bank paid 2.5% interest compounded annually. If she deposited PhP200,000 every year, how much did she have deposited, including the interest, after her 10^th deposit?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Analysis

VIEW

Step 2 Calculation of amount of deposit including interest

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Mrs. Kimberly deposited P 300, 000 in an account earning 8% compounded every 6 months. On the 2th year, she deposited an amount of P 80, 000. On the 7 year, she deposited another P 75,000 in the same account and left it for le years at which time 41 percent of the total interest of her total savings is withdrawn. What will be his withdrawal amount on the 30th year from the day she started his savings.
Shiraz deposited $500 at the end of each year for 18 years in a savings account. If the account paid 5% interest, compounded annually, find the future value of his account.
Mr. Peabody drove to his bank and deposited $500 at the end of every three months for 15.6 years. What is the accumulated value of Mr. Peabody's annuity at 4.95% compounded semi-annually?
To prepare for his retirement in 13 years, Tekla deposited 10,000 in an account paying 9%. Nine years after, he deposited another 10,000. How much will be available at his retirement? *
At the end of each of the past 14 years, Vanessa deposited $450 in an account that earned 8% compounded annually. How much is in the account today? How much would be in the account if the deposits were made at the beginning of each year (PMT Type) than at the end of each year? (Use Future Value of an Annuity
Today is a Tamara's 25th birthday, she decided to deposited a 14500 at a rate of 12% per annum to her personal account. If she increases his deposit by 10% each year until the 30th birthday, find the present worth of her money. (2 decimal places only, rounded off) Amount -
Kia deposited $1,200, at the beginning of each year for 30 years in a credit union account. If the account paid 12% interest, compounded annually, use the appropriate formula to find the future value of her account.
Tameshia deposits $5500 in her retirement account every year. If her account pays an average of 6% interest and she makes 38 deposits before she retires, how much money can she withdraw in 20 equal payments beginning one year after her last deposit?
9. In 6 years, Mrs. Fong must pay off a note with a face value of $14,000, and interest of 10% per year, compounded semiannually. Find the future value of the note. Then find the amount that the holder of the note should accept as complete payment today if money can be invested at 4% per year, compounded quarterly. 10. Ally Mackay deposited an inheritance of $14,850.00 in a bank and earned $495.00 in simple banker's interest at a rate of 5.5%. Find the length of time the money was on deposit. (Round to nearest day)
l wishes to provide herself, or her estate, with an income of $10,000 at the end of each year for 10 years. She will make a lump sum deposit when the account is established and add $3000 at the end of each year for 12 years. The income is to start at the end of the year following the year in which the last deposit was made. Compute the lump sum deposit. (All interest rates are 7 Percent Compounded annually)
Mrs. Pores invested P150,000 in a bank that pays an 13% interest converted monthly. If her account balance today amounts to P168,900, approximately how many months did she invest her money? O 9 months O 10 months O 8 months O 11 months
Mr. Palting deposited P100,000 on a bank bearing an interest of 12% compounded quarterly. At the end of 5 years, he started his annual deposits of P30,000. How much is his future account balance after he made his 4th annual deposit?