You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end?
Q: Taylor Swift, a college student of USEP decides to get a student loan amounting to $4,000 with an…
A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments…
Q: um of Year's Digit is established in which funds will accumulate for replacemen
A: There are many methods of determining the depreciation and each and every method has own advantages…
Q: Question 15: Calculate the monthly planned sales for August given the following information: %…
A: Planned sales of August = Planned Net Sales * % of August's sales
Q: On 1 April 2018, Magda received a low interest loan of $40,000 from her employer, ABC Pty Ltd. The…
A: 'Grossing up' involves increasing the taxable value of benefits you supply to reflect the gross wage…
Q: The final option is for Tully to complete a doctorate degree in economics after finishing his…
A: The rate at which cash flows are discounted is known as the discount rate. It can be the internal…
Q: Q4. Describe the typical organization of a buyout fund.
A: A buyout is the acquisition of a controlling interest in a firm, and the terms are used…
Q: Wesfarmers (Australian MNC) has imported heavy machinery totaling USD25 million and the payable is…
A: Wesfarmers(Australian MNC) will pay USD 25 Million to BHF (US MNC) in one year Base rate is the rate…
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: You wish to invest ₱10,000 for a period of 5 years. Which of the following investments would be best…
A: Bank A - Simple Interest Future Value = (Principal + ( Principal * Interest rate * Number of…
Q: A bond has a face value of $3500 and matures in 10 years. The interest rate is 7% payable semi-…
A: Purchase price of bond will be equal to present value of principal amount and present value of…
Q: Loans Loan Expected Standard Amount Return Deviation A $ 15 8.1% 1.1% million В $ 15 9.2% 1.3%…
A: The following solution is given below:
Q: The following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K):…
A: Inter-segment sales arises when revenue are generated due to transfer of goods from one segment of…
Q: Three invoices for the amounts of $34,800, $27,000, and $40,550 were received on July 7, 2014,…
A: Credit Terms = 3/7, 2/30, n/60 Invoice 1:Invoice Date = July 7, 2014Invoice Amount = $34,800 Invoice…
Q: Find the missing value for outings revenue, wages, and operating income. BLUFF RUN GOLF COURSES
A: Operating Income: It is a measure of profitability and shows the capability of the firm for…
Q: Auditing Sales/Revenue Transactions When an auditor needs to obtain an understanding of the overall…
A: Management is the management of an institution, whether it be a corporation, a semi, or a federal…
Q: The 2018 Tax Reformation was deemed one of the largest in most recent years. What were the major…
A: The Tax Cuts and Jobs Act (TCJA), signed into law in late 2017, was the most significant tax reform…
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: Consider a non-paying dividend stock sells for 150. George wants to sell his stock in one year for a…
A: A put option gives the buyer a right but not the obligation to sell the underlying security at…
Q: 2. Consider stocks A and B with the following characteristics: E(RA)=1.42%; E(Rg)=1.92%;…
A: Risk and return are the two important components of the investment. Return means earn additionally…
Q: Ms. MoneyPenny has the following investments: Required Return 13% Portfolio Weight Beta 1.80 Stock…
A: a) Required rate of return of portfolio is : Return=Wa×Returna+Wb×Returnb+Wc×Returnc Here, W=…
Q: Why do firms hedge their risk and what determines the choice of contract for hedging?
A: Hedging is a risk management approach that involves acquiring an opposing position in a comparable…
Q: The volatility of a dividend-paying stock whose price is $88, is 25%. The continuous compounded…
A: Stock Price S $ 88.00 Strike Price K $…
Q: 1- Ordinary shares 600 dinars 2- The ratio of current assets to equity is 70% 3- The quick ratio is…
A: The assets of firm consist of current assets and fixed assets and total assets must be equal to…
Q: Assume yourself as a senior manager of a healthcare organization and you have given the…
A: A capital investment decision by a company is a long-term growth strategy. To secure future growth,…
Q: Explain economic impact of the capital market?
A: Capital markets are very important for the growth and development of any country and are important…
Q: DEFERRED ANNUITY (please don’t use excel) Find the present value of a deferred annuity of P465 every…
A: Deferred annuity is the annuity where payment is not made at the beginning or end of the period but…
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: 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: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Jack Fitzgerald wishes to purchase a used car that has a cash price of $11,000. The installment…
A: Here, Cash price of car = $11,000 Down payment = $4,000 Amount of monthly payment = $225 Total…
Q: Use the sinking fund formula shown to the right to determine the semiannual payments with 8%…
A: Sinking fund can be defined as the saving fund, in which, the business organizations tend to…
Q: Ordinary Annuity: James wants to accumulate 124,700 in 7 years. Equal deposits are made at the end…
A: We need to use future value of annuity formula to calculate size of quarterly payment. PMT…
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: If you pay a price to buy a bond that is below its value, you will get a return that is lower than…
A: The statement is false
Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…
A: To Find: Debt ratio Average collection period Fixed asset turnover Return on equity
Q: what are the funding requirement for a start up restaurant
A: A fund is an investment allocated for a specific purpose. Funds range from city governments funding…
Q: 30. The internal rate of return is the simple (noncompounded) interest rate that equates the present…
A: The internal rate of return (IRR) is the rate at which initial investment equals the present value…
Q: Nestle Ltd. Production department realized that one of their machines needs to be replaced and the…
A: Net present Value is the difference between Present Value of cash Inflows and Initial Investment.…
Q: Suppose thát we can describe the world using two states and that two assets are available, asset K…
A: State Future Price of Asset K Future price of Asset L 1 $55 $60 2 $45 $30…
Q: interest, a $20,000 payment 10 years from now is equivalent to an annual payment for 15 years. The…
A: The future value of the payment includes the amount deposited and the interest accumulated over the…
Q: A bond has a face value of $3500 and matures in years. The interest rate is 7% payable semi-…
A: Face value (FV) = $3500 Coupon rate = 7% Semi annual coupon payment (C) = 3500*0.07/2 = $122.50…
Q: What does it mean by "Financial Services" when pertaining to the North American Free Trade Area
A: The North American Free Trade Area is popularly known as NAFTA. This free trade agreement was put…
Q: Given the following data: R = $1.00/¥115 F = $1.00/¥140 ius = 8% If the interest parity condition is…
A: Solution : Interest Rate Parity theory is that under which difference between the two country…
Q: An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I…
A: Interest rate compounded continiously is 15% First Annual payments is of $20,000 after that reduced…
Q: QUESTION 1 You are approved for a loan of $25,000 at 5.3% compounded quarterly If you plan to pay…
A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…
Q: O a. If the Yen appreciates against the GBP, then the MNC will stand to make a loss on its GBP…
A: When home currency appreciate against the other currencies than less amount to paid in for foreign…
Q: Beale Manufacturing Company has a beta of 1.5, and Foley Industries has a beta of 0.30. The required…
A: Calculation of required return: = Risk free rate + Beta (Market rate - Risk free rate)
Q: Exercise 4. Consider a mean-variance optimizer that wants to invest in bonds for two periods. In…
A: Given are the details, Annual yield bond = y2 for 2 years Annual yield bond = r1 for 2 year, Annual…
Q: 1. Compute the cost of equity for this project 2. Compute the relevant coet of deht for this…
A: Weighted average cost of capital (WACC) refers to the joint cost of company's capital from all the…
Q: Question 3- Taxable Equivalent Yield Jack & Jill are a young married couple residing in Connecticut.…
A: The return on a taxable bond which is equivalent to the return on a tax-free bond is known as…
SUBJECT:
(a) Identify the Given and the Unknown or what is being asked in the problem
(b)Provide the formula to be used
(c)Show the complete solution. The final answer is already provided.
You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end?
Answer: a.) F = P6,464.67, b.) F value difference = P196.63
Step by step
Solved in 8 steps
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
- You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote. Financial Mathematics Please answer all parts of the question Suppose you will receive $50,000 in 10 years time.a) What is the discount factor assuming quarterly compounding at 7% interest rate?b) What is the present value?c) What happens to the present value if the payment was to occur in five years?d) What happens to the present value if the interest rate was 8% instead?For the following economic calculations, write the factors (multipliers) that should be used,in (i) using the parameter values, and in (ii) calculate the result by showing your computations. Write the results you find in the spaces left. (Use factors for your calculations.)EXAMPLE: If you deposit $ 100 to a bank account that earns 8% annual interest, how much money will you have in this account after five years?(i)(F/P, 8%, 5) (ii)146.93100 * (F/P, 8%, 5) = 100 * 1.4693 = 146.93 TLa. You plan to take a credit with $1500 installment size per year with an annual interest rate of 8% over six years from a bank. What is the amount of your current credit?(i) (ii)b. A bank is required to deposit money for four years with an interest rate 10%. The money deposited at the end of the first year is 6000 TL and the amount of money deposited in the next three years will be reduced by 500 TL every year. How much money will be in the bank at the end of the fourth year?(i) (ii)
- TOPIC: ENGINEERING ECONOMICS Specific Instructions: Solve each problem NEATLY and SYSTEMATICALLY. Show your COMPLETE solutions and BOx your final answers. Express all your answers in 2 decimal places. Problem: 1. What is the future amount of my Php 100, 000 after 5 years if I invest today at a rate of 12 % compounded annually? The inflation rate is 8 % per year. What is the actual effective rate given to the account?Please provide the steps to solving this problem using a financial calculator: You just opened a brokerage account, depositing $3,500. You expect the account to earn an interest rate of 9.652%. You also plan on depositing $4,500 at the end of years 5 through 10. What will be the value of the account at the end of 20 years, assuming you earn your expected rate of return?Use the present value and future value tables to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? $fill in the blank 1 B. If you place $6,100 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? $fill in the blank 2 C. You invest $7,000 per year for 9 years at 12% interest, how much will you have at the end of 9 years? $fill in the blank 3 D. You win the lottery and can either receive $760,000 as a lump sum or $40,000 per year for 19 years. Assuming you can earn 8% interest, which do you recommend and why?
- Use the present value and future value tables to answer the following questions. A. If you would like to accumulate $2,600 over the next 5 years when the interest rate is 15%, how much do you need to deposit in the account? $fill in the blank 1 B. If you place $6,300 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? $fill in the blank 2 C. You invest $7,000 per year for 11 years at 12% interest, how much will you have at the end of 11 years? $fill in the blank 3 D. You win the lottery and can either receive $740,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why? Take the lump sum $740,000 because it is more money.PROBLEM (1-4) (A) If you want to have $250 in 5 years and you can earn an annual return of 7%, how much must you invest today? Be sure to use cell references and make sure that your answer appears as a positive value. (B) If you make a one-time deposit today of $800 you can earn 10% per year, how much would you have in your account after 15 years? Be sure to use cell references and remember that deposits from you are outflows. (C) If your investment of $1,254 declined to $435 in 6 years, what compounded annual rate of return would you have earned? Be sure to use cell references and to convert your answer to a percent rounded to two places after the decimal point. (D) If you can earn 5% per year, precisely how many years would it take for your investment of $450 to turn into $1,200? Be sure to use cell references and display your answer rounded to two places after the decimal point. TIME VALUE OF MONEY: LUMP SUMS PV FV r n (A) (B) (C) (D)4. If you receive $116 each month for 28 years and the discount rate is 0.08, what is the present value? (show the process and can use financial calculator)
