A payment of $3,530 is due in 45 days and another payment of $4,790 is due in 280 days. Calculate the single equivalent payment to be made in 80 days to settle the two payments if money earns 6.05% p.a. (Hint: use 80 days from now as the focal date.) $

Q: Firm ZLC will be receiving payments of $10,000 per month for consulting services, with first payment…

A: Future value of annuity The future value of annuity refers to the total value of the investment at…

Q: A loan from Scotiabank for $265,000 is repaid by making payments at the beginning every six months…

A: We need to use financial calculator to solve this problem.

Q: A $750 payment is due 8 months from today. What is the equivalent value of the $750 payment if it is…

A: The time value of money (TVM) is the concept that the money you have now is worth more than the…

Q: hat single payment now is equivalent to a uniform series of $1000 per year for 20 years, beginning 6…

A: The present value of annuity considering the interest rate and period would give the single payment…

Q: A payment of $1,930 is due in 55 days and another payment of $3,600 is due in 300 days. Calculate…

A: Given: A payment of $1930 is due in 55 days and another payment of $3600 is due in 300 days. So,…

Q: A payment of $15,000 is due in 1 year and $11,000 is due in 2 years. What two equal payments, one in…

A: Compounding is a technique which is used to compute the future value (FV) of the present amount by…

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000…

A: Focal date is after 1 year (12 months) Payment 2 years (24 months) ago (P1) = $657 Payment today…

Q: Two payments of $5,200 are to be received four and eight months from now. b. If the rate of interest…

A: Economic value is the measurement of the benefit derived from a good or service to an individual or…

Q: A $16000 loan is to repaid by monthly payments of $340, the first payment is due in one year's time.…

A: Repayment of loan is made in fixed instalments for during the loan period which include part of…

Q: You are considering taking out a loan of $10,000.00 that will be paid back over 9 years with…

A: loan amount (p)=$10,000 n=11 payment m=4 pmt=$360.02 r=5.9%

Q: How many payments will you have made when your account balance reaches $15,000?

A: Future Value of Annuity: It is the worth of the recurring cash flows or payments at a certain…

Q: Malik took out a loan for $27,800 from CIBC at 5.51% compounded quarterly, and will be making…

A: We need to use financial calculator to solve this problem  where P/Y =Payments par year C/Y…

Q: cheduled payments of $1,400 due today and $1,600 due with interest at 11.5% compounded annually in…

A: In this we have to calculate the present values of both options and equate them with payment.

Q: $20,000 loan is being repaid by installments of $400 at the end of each month for as long as…

A: Amortization schedule is a table in which period payment or installment paid and the amount of loan…

Q: At what effective rate, a single payment of $ 1,500.00 today is equivalent to two payments of $…

A: An annuity is a series of equivalent periodic cash flows that contain a fixed amount occurring at…

Q: Merchandise is received for $25,000 now and $50,000 in 6 months. If $10,000 is paid within a month,…

A: Honor code: Since you have asked multiple questions, we will solve the first question for you. If…

Q: Payments of $1,350 in 1 year and another $2,100 in 5 years to settle a loan are to be rescheduled…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: A payment of $35,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Let the equal payments = X The payments are to be made in year 2, 4 and 7. Interest rate = 4.5%…

Q: Loan payments of $1,900 due 95 days ago and $4,350 due today are scheduled to be repaid with a…

A: Simple interest is the interest charged on the principal portion of the loan.  The final payment of…

Q: A $2,400 payment is due 6 months from today. What is the equivalent value of the $2,400 payment if…

A: The more is the compounding more is the effective interest rate and more is the interest accumulated…

Q: A payment of $700 is due in 3 years, and $5,000 is due in 5 years. What single payment made today…

A: PV=FV11+rn=$70011+4.54×1004×3+$500011+4.54×1004×5=$612.062293+$3997.59977=$4609.66206=$4609.66

Q: A building is priced at $100,000. If a downpayment of $30,000 is made, an a payment of $1,000 every…

A: The number of Monthly Payments required can be calculated with the help of NPER function of Excel.…

Q: A payment of $3,160 was due three years ago, and a payment of $1,150 is due today. What single…

A: Money received today is worth more than money due at a later date, according to the time value of…

Q: Choam Inc. owes $16,100 that is due in 1 year. Instead of paying then, Choam is going to make two…

A: Amount due in 1 year = $16100 Interest rate (r) = 3.8% per annum First payment is to be done in 6…

Q: If you buy a computer directly from the manufacturer for $2.634 and agree to repay it in 36 equal…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Two payments of $18,000 and $2,200 are due in 1 year and 2 years, respectively. Calculate the two…

A: Compounding refers to the power of increasing the interest on the total investment . It actually…

Q: Payments of $657 and $1000 due 2 years ago and today respectively are to be replaced by two $1000…

A: The concept of TVM is used to compare the value of money at different times based on the interest…

Q: Two payments of $7,500 each must be made three years and six years from now. If money can earn 8.4%…

A:

Q: A payment of $12,000 is due in 1 year and $10,200 is due in 2 years. What two equal payments, one in…

A: Compounding is a process that uses an appropriate rate or CVF to calculate the future value (FV) of…

Q: 20000 TL loan is being repaid by installments of 100 TL at the end of each month for as long as…

A: given information total loan = 2000 pmt = 100 interest = 12%

Q: A contract can be fulfilled by making an immediate payment of $21,100 or equal payments at the end…

A: Monthly payment to be made shall be in form of annuity which shall be calculated as: = Contract…

Q: A loan of $28,000.00, made 6 months ago, will be repaid by 3 equal payments – one today, one in 11…

A:

Q: A loan of $14,400 is to be repaid in end-of-the-quarter payments of $600. How many payments are…

A: Using excel NPER function  =NPER(rate,pmt,pv,fv)

Q: If you buy a computer directly from the manufacturer for $2,202 and agree to repay it in 48 equal…

A: 1.Calculation of monthly installments 2.Total Interest paid Given  Monthly Interest rate= 1.59%…

Q: A loan of $1500 is to be repaid by annual payments of $250 to commence at the end of the fifth year…

A: Loan balance at 5th year = Present value*(1+rate)^years Loan balance at 5th year = $1,500 * (1+5%)^4…

Q: A scheduled payment of $5,500 due in one year is to be replaced with two payments: the first due in…

A: Time value of money shows that the money available today is worth than the money in the future.

Q: A payment of $13,735 is due in 1 year, $19,500 is due in 4 years, and $8,900 is due in 7 years. What…

A: Payment due in year 1 (P1) = $13735 P4 = $19500 P7 = $8900 Interest rate = 5.5% monthly compounded

Q: A payment of $23,000 is due today. What three equal payments, one in 2 years, one in 4 years, and…

A: Given That: P.V=$23000 Payment is done in 3 equal payment Rate of interest= 4.25% Duration= 6 years…

Q: What is the size of the payments that must be deposited at the beginning of each 6-month period in…

A: I/Y = rate = 6.2%/2 = 3.1% NPER = Number of years = 13*2 = 26 PV = Present value = 0 FV = future…

Q: A S5000 payment is scheduled for six months from now. If money is worth 6.75%, calculate the…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: A payment of $14,455 is due in 2 year, $18,000 is due in 4 years, and $8,450 is due in 7 years. What…

A: The question is based on the concept to calculate present value of expected future cash flows at…

Q: A payment of $2,690 was due two years ago, and a payment of $1,650 is due today. What single payment…

A: This question can be solved in light of time value of money and future value. The formula to…

Q: A payment of $12,000 is due in 1 year and $11,500 is due in 2 years. What two equal payments, one in…

A: The present value method uses the discount rate to find the present values of the cash flows.

Q: How long before a scheduled payment of $3,354 will a payment of $3,018 be economically equivalent?…

A: Future Value = 3354 Present Value = 3018 Interest Rate = 4.25%/4 = 1.0625% per quarter N = Number of…

Q: Find the size of monthly payment for 2 years on P85,000 if money is worth 12% compounded monthly and…

A: N = 2 years or 24 months Loan = 85000 Nominal Rate = 12% Compounded Monthly Number of compounding…

Q: A payment of $11,710 is due in 1 year, $19,500 is due in 4 years, and $8,400 is due in 6 years. What…

A: The screenshot of the above sheet along with formulas is given below for your reference. The Single…

Q: A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four…

A: Information Provided: Demand loan = $8000 Payments after two years = $4000 Payments after four years…

Q: Loan payments of $2,400 due 97 days ago and $4,450 due today are scheduled to be repaid with a…

A: Simple Interest is method of computed interest where base is principal amount only. Interest is not…

Q: If you buy a computer directly from the manufacturer for $2,825 and agree to repay it in 48 equal…

A: Principal = $ 2825 Number of monthly installments = 48 Monthly interest rate = 1.94%

Q: A scheduled payment of $3,500 due in one year is to be replaced with two payments: the first due in…

A: Scheduled payment in 1 year (12 months) (X) = $3500 Replacement payment 1 = R1 in 9 months…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.