HOW MUCH MONEY MUST YOU INVEST TODAY IN ORDER TO WITHDRAW P2,000.00 ANNUALLY FOR 10 YEARS IF THE INTEREST RATE IS 9%? a.P12,385.32 b.P12,835.32 c.P12,881.37 d.P12,853.32
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HOW MUCH MONEY MUST YOU INVEST TODAY IN ORDER TO WITHDRAW P2,000.00 ANNUALLY FOR 10 YEARS IF THE INTEREST RATE IS 9%?
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- Suppose you expect to receive a $10,000 bonus from your employer in two years upon completing your college degree. If the interest rate is 5%, what is the present value of the $10,000? The present value is $9,070.30 $9,523.80 $11,025.00 $10,500.00What is the present value of a P90,000 annual annuity for 10 years with an additional P1,000,000 received at the end of the 10th year if the current level of interest rates is 8 per cent? a. P1.9M b. P1.363M c. P1.067M d. P1.167MAt a certain interest rate compounded quarterly, P1k will amount to P5k in 10 years. What is the amount at the end of 15 years? a. P18,781.582 b. P9,781.691 c. P1828.582 d. P11,180.09
- John is a very cost-conscious investor. His rule of thumb is that it costs $200 per year, starting in the first year of vehicle life to maintain an automobile. This expense increases by $200 each year over the life of the car. John is now considering the purchase of a five-year old car with 50,000 miles on it for $9,000. How much money will John have to set aside now to pay for maintenance (as a lump sum) if he keeps this car for seven years? John's interest rate is 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. John will have to set aside $ to pay for maintenance. (Round to the nearest dollar.)Suppose you pay $971 for a 10=year Treasury bond that has a face value of $1,000 and a coupon rate of 5%. If you sell the bond one year later for $1,013, what is your one-year rate of return? (Give your answer as a percentage, round your answer to two decimal places; e.g., 4.37 for 4.37%)John is a very cost-conscious investor. His rule of thumb is that it costs $300 per year, starting in the first year of vehicle life to maintain an automobile. This expense increases by $300 each year over the life of the car. John is now considering the purchase of a six-year old car with 40,000 miles on it for $7,000. How much money will John have to set aside now to pay for maintenance (as a lump sum) if he keeps this car for seven years? John's interest rate is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. John will have to set aside $ to pay for maintenance. (Round to the nearest dollar.)
- Suppose that Tyler wants to buy a house and is thinking of using $20,000 that sits in a retirement account for a down payment on this new home. Using the $20,000 as a down payment will reduce Tyler's income when he retires in 30 years. If Tyler can earn an 8%8% annual return on his money if he leaves it in the retirement account, how much will his consumption in retirement be reduced if he uses this money for a down payment now?John is a very cost-conscious investor. His rule of thumb is that it costs $300 per year, starting in the first year of vehicle life to maintain an automobile. This expense increases by $300 each year over the life of the car. John is now considering the purchase of a four-year old car with 30,000 miles on it for $6,000. How much money will John have to set aside now to pay for maintenance (as a lump sum) if he keeps this car for eight years? John's interest rate is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. John will have to set aside $ to pay for maintenance. (Round to the nearest dollar.)John is a very cost-conscious investor. His rule of thumb is that it costs $300 per year, starting in the first year of vehicle life to maintain an automobile. This expense increases by $300 each year over the life of the car. John is now considering the purchase of a five-year old car with 40,000 miles on it for $9,000. How much money will John have to set aside now to pay for maintenance (as a lump sum) if he keeps this car for six years? John's interest rate is 4% per year. Click the icon to view the interest and annuity table for discrete compounding when i = 4% per year. John will have to set aside $ to pay for maintenance. (Round to the nearest dollar.)
- Give typing answer with explanation and conclusion You have opened your own word-processing service. You bought a personal computer, and paid $5,000 for it. However, due to the cost changes in the computer industry, the current price of an equivalent machine is $2,500. You could sell any used machine for $1,000. If you were not word processing, you could earn $20,000 per year at an alternative job. Assume that the interest rate is 10%. You can also hire an assistant who can do everything that you can do for $20,000 per year (you would still continue to do word processing). One person using one computer can produce 11,000 typed pages per year, and the price per page for your service is $2. You are considering three options: (A) expand your business by hiring an assistant; (B) leave your business the way it is; (C) shut down. Fill in the Blank For Option B, economic profit is $_______.Compute the difference between the two modes of investment. Write the difference between the two (absolute value). Mode 1: making an end-of-year deposit of P1,183 on the fırst year and so on increasing the next year's deposit by 10% of the deposit in the preceding year until the end of the 11th year. Mode 2: making an equal deposit of P1,607 annually for 11 years. Both earns 8.63% compounded annuallyGeorge wants to retire at 65 with $1,000,000 in savings. He plans to deposit a lump sum on his birthday each year. How much will he need to invest each year if he starts saving at 25? 35? 45? Assume an interest rate of 6%
