1. Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that Pedro's money shall earn monthly compounded interest. If the prevailing interest rate of the Institution M is 8 % compounded yearly, how much will the value of his deposit be after 14 months?
Q: Hugh has the choice between investing in city of Heflin bond at 77 percent or investing in surething…
A: Heflin bond @77% after Tax 46.2% is the return
Q: 7. If you deposit $5,000 at the end of each of the next 20 years into an account paying 10.8 percent…
A: Future value of a present value is the value of that amount after taking into account the time value…
Q: A new establishment costing P300,000,000 excluding the equipment has an estimated useful life of 40…
A:
Q: 31. Supercall plc has conducted a stakeholder mapping exercise. This produced the following results…
A: There are two multiple choice Questions on disconnected topics. The first one is about the type of…
Q: A certain stock has a beta of 1.3. If the risk-free rate of return is 3.9 percent and the market…
A: Expected return on a stock implies the returns expected on a stock after taking into consideration…
Q: Find the effective mortgage rate for a 30-year, $100,000 mortgage at 6% interest compounded monthly…
A: Honor Code: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be…
Q: Musashi and Rina are building their portfolios. Musashi purchases shares in a mutual fund and pays…
A: Stock market is a place where the sellers and buyers of stocks exchange money. Stock portfolio is…
Q: (Related to Checkpoint 5.4) (Present-value comparison) You are offered $110,000 today or $400,000 in…
A: Present value is the present worth of a future amount which is calculated by discounting the future…
Q: Need help on practice qu
A: Credit card company often provide the credit facilities at a lower interest rate to those the credit…
Q: What is the value of a 5-year, $1,000 par value bond with a 9 percent annual coupon if its required…
A: Given, The Term of bond is 5 years Par value of bond is $1000 Annual coupon rate is 9%
Q: Betsy, a recent retiree, requires $6,000 per year in extra income. She has $70,000 to invest and can…
A: Investment Amount = $70,000 B-rated Bond interest Rate = 17% Certificate of Deposit (CD) interest…
Q: how long will it be before you have enough money for the down payment and closing costs?
A: Information Provided: Amount at hand (Present value) = 15,000 Down payment = 10% of house cost…
Q: In how many years is required for P2000 to increase by P3000 at interest rate of 12% compounded…
A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…
Q: 2. Assume England and Spain have the same labor requirements as above, but now you know that the…
A: Commodity Trms of Trade = Export price ÷ Import Price * 100 = 4÷3.5 *100 = 114.3
Q: e. f. Suppose most investors expect the inflation rate to be 5% next year, 6% the following year,…
A: Interest rate or yield of bond The interest rate or yield of bond is calculated as shown below.…
Q: 5 What are "Nominal" prices?
A: Nominal Price is termed as a price which is not reflected by the real market prices of an asset…
Q: A non-traditional lending source offers Megan a loan for $5,400. They require the loan to be repaid…
A: Cash flows to Megan; Year 0 = $5,400 Year 1-3 = - $2,100 Interest rate = ? We will calculate…
Q: 2. Given: Asset 1. E(R): = 3 Var(R₂) = 1.5 Asset 2. E(R) = 5 w1 .9 w2 0 .1 E(Rp) 3 3.2 24 Var(Rp)…
A: Efficient frontier It is a set of portfolios that provide the highest expected return for the given…
Q: The key similarities and differences between a small company equity fund (also called a small cap…
A: An equity fund is a type of mutual fund. In an equity fund the fund manager predominantly invests…
Q: Calculate the percentage return on a 1-year Treasury bill with a face value of $10,000if you pay…
A: The treasury bill is issued at discount but matures at the face value. There is no interest on the…
Q: Mr. Smith takes out a $100,000.00 loan with an effective yearly interest rate of 10%. He must repay…
A: Given: Particulars Amount Loan (PV) $100,000 Interest rate 10% Years 30
Q: Tom Inc. report a $30million of net income. its EBIT is 50millions, the flat tax rate is 25%? What…
A: Solution:- Earnings before interest and tax (EBIT) means the net operating income of an entity. The…
Q: Suppose that you can earn 15% compounded monthly. You would like to have $100,000 in 5 years. You…
A: Given, Rate is 15% compounded monthly Amount required is $100,000 term is 5 years
Q: According to the balance sheet of Free Inc, at the end of the 2020 fiscal year, the cash balance is…
A: Economic value added(EVA) is a concept that measure the performance of a firm’s management in…
Q: Malcolm owns an empty shop unit. Following long negotiations with Urquhant plc, which operates a…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Find the payment made by the ordinary annuity with the given present value. $242,665; quarterly…
A: Present value (P0) = $242,665 Quarterly period (n) = 60 (i.e. 15 years * 4) Quarterly interest rate…
Q: Explain the difference between financial capital and physical capital
A: Every type of business id defined by its assets. These assets can be classified as financial capital…
Q: a) What is the present value of the benefits? (b) What is the present value of the costs?…
A: To determine the PV of benefits, we are going to use a PV of perpetuity formula adjusted for annual…
Q: 3. Analysis of an expansion project Companies invest in expansion projects with the expectation of…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: You expect to receive $15,000 at graduation in two years. You plan on investing it at 11 percent…
A: =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper The total number of…
Q: You are considering an investment in the stock market and have identified two potential stocks (XYZ…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Viljoen plc has suffered the following events: (1) An accidental failure of IT security resulting in…
A: Several event have been given. We have to identify those that correspond to cyber risks in action.…
Q: If the discount rate is 5 percent, then the project's NPV is $ (Round to the nearest dollar.)
A: First, we need to find PV of net cash inflows using an ordinary annuity formula as below PV = P1 -…
Q: Daigle started placing $75 per month into an annuity savings plan. The future value of his account…
A: Amount of Annuity is $75 per month Future Value of Annuity is $10,212.90 Time period is 10 years To…
Q: Janina, Incorporated, has the following mutually exclusive projects. Year Project A Project B 0…
A: Discount Rate = 15% Required Payback Period = 2 years Year Project A Project B 0 $-30,000.00…
Q: 4. The Sisyphean Company has a bond outstanding with a face value of $1000 that reaches maturity in…
A: Semiannual coupon amount = $40 (i.e. $1000 * 0.08 / 2) Bond price = $1035.44 Semiannual maturity…
Q: The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the…
A: Break Even Point: Break-even point is the income level that a business needs reach in order to be in…
Q: 4. ( s) Fund A earns interest at a simple rate of i% a year. $P is invested in fund A. (a) What is…
A: Simple Interest: An investment is said to earn a simple interest if the interest is computed on the…
Q: Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be…
A: Material cost = $11 Labor cost = $4 Overhead cost = $7,000 Interest in March = $8,200 Employee…
Q: (Net present value calculation) Carson Trucking is considering whether to expand its regional…
A: Net Present Value(NPV) refers to one of the concepts from the modern techniques of capital budgeting…
Q: A put option on MSFT (Microsoft) stock has the following terms: exercise/ strike price is $320;…
A:
Q: Enter the missing piece of information, assuming the interest calculated is simple interest and the…
A: Simple interest The method used to calculate interest on borrowing or lending is called simple…
Q: Andrew deposit $2 into a fund at time 0. Money in this fund accumulates at an effective annual…
A:
Q: An airline is considering two types of engine systems for use in its planes. Each has the same life…
A: Equivalent annual cost refers to the cost that is owned, operated, and maintained for an asset in…
Q: d. What was the value of your shares when you sold on 5/3/99? Show your answer in dollars and cents.
A: The value of shares when you sold can be calculated with the formula belowSelling price per shares x…
Q: Johnson Products earned $4.35 per share last year and paid a dividend of $1.70 per share. If ROE was…
A: Select financial information have been given about a company. We have to find the sustainable growth…
Q: C-Spec, Inc., is attempting to determine whether an existing machine is capable of milling an engine…
A: Solution:- Cpk stands for Process capability index, which measures capability of a process. Formula…
Q: Alex invested P25,000.00 to a business. The ROR is 9 % compounded quarterly and he expects to have…
A: Given that Amount invested = P25,000 Rate of return (ROR) = 9% compounded quarterly So quarterly…
Q: What is the balance in the account after 3years? How much of this balance corresponds to "interest…
A: Information Provided: Principal = $1250 Interest rate = 8% A: Period = 3 years B: Period = 31 years…
Q: Reginald is about to lease an apartment for 36 months. The landlord wants him to make the lease…
A: Data given: Monthly payment = $1000 n=36 months One time payment= $32,484
Step by step
Solved in 2 steps with 2 images
- If James deposits $2,000.00 in a fixed deposit for 1 year, what will be the difference in the accumulated amounts at 12% p.a. compound interest versus 12% p.a. simple interest? Hence, based on your response what may have contributed to this difference. Lastly, if the deposit period changed from 1 year to 2 years, would your response remain the same?Pedro, who deposited P500,000.00 today with a financial Institution M, agreed with the latter that Pedro’s money shall earn monthly compounded interest. If the prevailing interest rate of the Institution M is 8 % compounded yearly, how much will the value of his deposit be after 14 months? show formula used and systematic solutionCesar Moreno is considering entering into an agreement with BDO bank to deposit P1,000 into a special account at the end of the first year. P1,100 at the end of the second year, etc. increasing by P100 each year. At the end of 15 years, he would be able to withdraw a lump sum of P36,000 at what rate would he earn interest, if the interest was compouded anually?
- A man will deposit P1,000.00 with a savings and loan association at the beginning of each 3 months for 9 years. If the association pays interest at the rate of 10% quarterly, find the sum to his credit just after the last deposit. a. P58,633.95 O b. P58,733.95 O c. P58,373.95 O d. P58,763.95Every three years, D will pay Mr. J 5,000 at 8% rate to settle his loan. Mr. D will use which formula to compare with cash payment? A. Future value of IB. FV of AnnuityC. Present Value of ID.Suat opens a deposit account in a bank by depositing 10,000 TL. In addition, he will deposit 6,000 TL into the account one year later and 4,000 TL the following year. The deposit account is valued at the annual fixed effective interest rate %. Calculate the interest rate, i, if the value of the money in Suat's account is 22,000 TL at the time that Suat deposits 4,000 TL.
- 2. Deposit the principal amount of P10,000 into a savings account that pays interest at the rate of 5%. What is the amount in the account after 1 year if the account is: a. compounded annually b. compounded semi-annually c. compounded quarterly d. compounded monthly e. Which is advantageous to the investor?1. You invest $1,000 in a certificate of deposit that matures after ten years and pays 5 percent interest, which is compounded annually until the certificate matures. a. How much interest will you earn if the interest is left to accumulate?1. A man was offered a landbank certificate with a face value of P 100,000 which is bearing an interest rate of 8% per year payable semiannually and due in 6 years. If he wants to earn 6% semiannually, how much must he pay the certificate? Ans. P 90614.92
- Engr. Tongol borrowed money from a loan shark. He receives from the loan shark an amount of P 134,200 and promise to repay P 150,000 at the end of 1 year and 9 months. What is the simple interest rate?A man borrowed Php200000 from his friend and agreed to pay years at an interest rate of 10% per annum. How much should the man deposit monthly in a bank in order to discharge his debt, if the bank offers 6% annual interest rate?You deposit $1.2 milion into vour account to cover expenses in the next 12 vears. The account earns interest at the rate of 4%, compounded annually. Assume you expect the balance of the account to be $0 at the end of the 12th year. A) What annual level of living expenses Will your initial deposit support. (e.g., what equal annual withdrawal can you make for the next 12 years )? b) Suppose you realize your living expenses will increase at an annual rate of 2% due to inflation. Determine the updated annual spending plan in the line with this model how much can you withdrawal at the end of the first year. knowing that your withdrawal will increase by 2% each year? C) Suppose the initial deposit is still planned to support your equal annual expenses in the next 10 years as in part a but don't need to withdraw any money from your account for the first 6 years. You will withdraw from your account annually starting from the end of year 7 till the end of year 12. What annual level of living…