Q: You can retire at age 62 and receive $8,000 per year or retire at age 65 and receive $10,000 per yea...
A: Choice 1: Annual receipt is $8,000. Discount rate is 2%. Maturity is (70 - 62) 8 years. Choice 2: ...
Q: A binding contract is created when a contractor submits a bid for a project O True O False
A: A binding contract is a contract where the parties to the contract are legally enforceable and the p...
Q: What is the monthly payment on a loan of $5,000 at APR = 6% for 4 years.
A: Loan amount (LV) = $5000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 4 Yea...
Q: Profits generated by SM Prime Holdings were ₱100 million for the first year and increased by ₱10 mil...
A: Future Value: Using an expected rate of growth, future value (FV) is defined as the worth of a prese...
Q: Find the present worth of perpetuity of P 10,000 semi annually with an interest rate of 10% quarterl...
A: In this question, the first semi-annual payment will be given after 5 years. First, the present valu...
Q: ou work for the CEO of a new company that plans to manufacture and sell a new product, a watch that...
A: Here ROEL refers to ROE for the leveraged situation while ROEU refers to ROE for the unleveraged sit...
Q: ys a dividend of $2 per share (D0 = $2). It is estimated that the company's dividend will grow at a ...
A: Given information : Current dividend $ 2.00 Initial growth rate 24% Time period of growt...
Q: What-if forecasting provides information regarding how much net interest income changes when interes...
A: Interest is the fee given to an investor or a depositor of fund for the decreased time value of mone...
Q: The Cassidy Foundation is a non-profit organization to aid the homeless. The foundation has NEW asse...
A: Return Objective: The fund's return objective must focus on an approach named Total Return Approach....
Q: explain in etail the penalty for failure in furnish a return or statement (section 182) and penalty ...
A: Financial statement fraud is the intentional manipulation of a company's financial statements to dec...
Q: PART II - Below are 2019 FMT Company Cash flow accounts. Increase in bonds 170.0 Net income 117.5 In...
A: Cash flows from operating activities is cash inflows and outflows from day to day operations of enti...
Q: A loan is to be amortized by a group of five end of year payments forming an ascending arithmetic pr...
A: A loan is a sum of money borrowed from a third party, such as a bank, and returned over time in pred...
Q: Encik Azhar deposited RM500 every quarter for five years in an account that paid 3.85% interest comp...
A: Here, Quarterly Deposit is RM 500 Interest Rate (r) is 3.85% Compounding Period (m) is Quarterly i....
Q: Explain why a credit crunch occurs in particular why it often occurs after a financial crisis.
A: Credit crunch can be defined as the critical situation where borrowers are not able to borrow money ...
Q: A car is to be paid P15000 forever at the rate of 9%. What is the amount of the car after 9 years at...
A: Cash flow of car = P15,000 Rate = 9% Time = 9 years Rate = 6% compounded quarterly To Find: Amount o...
Q: What is the total interest paid on a loan of $5,000 at APR = 6% for one year.
A: Loan amount = $5000 Interest rate = 6% Period = 1 Year
Q: As the top employer at your firm you are given the following choices as your end of year bonus: (ass...
A: Present value Present value of a future amount is calculated by discounting the future amount to the...
Q: The real risk-free rate, r*, is 4.5%, and it is expected to remain constant over time. Inflation is...
A:
Q: Briely discuss the advantage and disadvantage of franchise.
A: A franchise is a sort of license that allows a franchisee to sell a product or service under the fra...
Q: What is the ordinary interest on P1,350.75 for 163 days at 3.5%? php?
A: Ordinary interest is calculated on the basis of 360 days a year or 30 days a month whereas exact int...
Q: A new bridge across the Allegheny River in Pittsburgh is expected to be permanent and will have an i...
A: Data given: Initial cost =$ 30,000,000 Resurfaced cost = $1000,000 ( every 5 year) Annual inspection...
Q: Find the future value for the ordinary annuity with the given payment and interest rate. PMT = $700;...
A: Ordinary Annuity is a sequence of regular payments made at the end of each period which can be month...
Q: The shares of toll road operator TransRural currently trade for $15 per share. Over the next 3 month...
A: It is a one step binomial model. Up factor "u" and down factor "d" is calculated and then C+ and C- ...
Q: merchant is offered a 5% discount for immediate payment of a bill which is due in 90 days. What is ...
A:
Q: You invest $1,500 into a "hot stock" through the Robin Hood app. The stock does well in the first qu...
A: We can find the money-weighted return by taking the investment made in the stock $1500 and $1000 and...
Q: Spot USDJPY is trading at 113.15 and the 3 month forward points are -22. The exchange rate for the l...
A: Given: Spot USDJPY rate = 113.15 3-month forward points = -22
Q: what should be the price of this European put option
A: Options are kind of derivative instruments. That is value of options is derived from the value of so...
Q: During the year, Al's Tools decreased its accounts receivable by $200, increased its inventory by $1...
A: Increase in current assets & decrease in current liabilities results in decrease in cash while d...
Q: projects payback? Year Cash flows 1 3 $300 -$500 $150 $200
A: Payback period is the time taken to recover the cost of the investment. The payback period does not ...
Q: What are the disadvantages of the financial intermediaries and the negative ways they can impact the...
A: A financial intermediary is that entity that acts as a middleman in a financial transaction taking p...
Q: If you deposit $20,000 per year for 18 years (each deposit is made at the beginning of each year) in...
A:
Q: rance company premium cost is $500 and its target loss ratio is 75%. If this company utilizes a tech...
A: The insurance company's expected profit point for your employee benefit plan's extended health and d...
Q: DEFG Company has an inventory conversion period of 66 days, a receivable conversion period of 35 day...
A: The operating cycle is the time that a firm takes to purchase goods and convert the same into cash b...
Q: Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 9.3 percent, a YT...
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...
Q: Alyssa Stuart is thinking of starting a store that specializes in handmade Viennese style bentwood c...
A: Contribution margin It is the amount excess of variable cost. Contribution margin is calculated as s...
Q: Bulawan Coin, Inc. is considering shortening its credit period from 30 days to 20 days and believes,...
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts f...
Q: have the following data during the coming year. What is the firm's expected ROE?
A: The return on equity (ROE) is a financial metric that is calculated by dividing net income by shareh...
Q: You are considering buying a semi-annual coupon bond with a stated coupon rate of 8 % (note that the...
A: Value of bond = Present value of coupon payments receivable from bond discounted at required rate of...
Q: Determine the present value of payments of $100 at the end of each month for 20 years. Use a discoun...
A: Monthly payment (P) = $100 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period = 20 ...
Q: Find the future value of −−P60, 000 invested for 10 years at 3% interest compounded monthly
A: Answer- Future Value Formula- FV = PV ( 1 + r/n) nt Given, PV = P 60000 r= 3% n = 12 nt = 12*1...
Q: 5%, what amount must you donate to endow the scholarship?
A: Present Value of Perpetuity: It refers to the present worth of annual cash flows having an infinite...
Q: What is the total interest paid on a loan of $5,000 at APR = 8% for one year.
A: Loan amount (LV) = $5000 Interest rate (r) = 8% Period (n) = 1 Year
Q: 4. Suppose portfolio P's expected return in 12%, its volatility (standard deviation) is 20%, and the...
A: Solution:- Sharpe Ratio measures the excess return over risk free return, per unit of risk taken ie....
Q: Paul opens a savings account today and deposits $1,000 now. He is certain that he will be able to de...
A: Since the payments are being made at the beginning of the period i.e. months thus this is a case of ...
Q: Aldo's Shoes bought a shipment of 650 pairs of women's shoes for $43.00 per pair. The store sold 162...
A: Cost per pair = $43 162 pairs sold at $129 Clearance sale - 46 pairs sold at 33% discount Inventory ...
Q: A Bond par value sh. 100 coupon rate 7% investment period 10 years a) Determine the value of the ...
A: A bond is represented as a fixed income security in which a borrower takes a loan from the investor ...
Q: At the beginning of each month, P 200 is deposited into a retirement fund. The fund earns 6% compoun...
A: An annuity is a series of equal payments made or received at regular intervals. When the cash flows ...
Q: I. Simple interest calculations assume the interest earned is never reinvested. II. The real interes...
A: The question is based on the concept of simple interest and compound interest. The simple interest c...
Q: The following information is available to a Zambian trader: i. Percentage spread given for Zambian k...
A: In any currency market, bid price can be defined as the price at which a dealer is willing to pay fo...
Q: Aldo's Shoes bought a shipment of 656 pairs of women's shoes for $25.00 per pair. The store sold 176...
A: Since you have posted a question with multiple sub-parts, thus we will solve first three sub-parts. ...
Step by step
Solved in 2 steps with 2 images
- Five annual deposits in the amounts of $15,000, $14,000, $13,000, $12,000, and $11,000 are made into a fund that pays interest at a rate of 7% compounded annually. Determine the amount in the fund immediately after the fifth deposit.Five annual deposits in the amounts of $10,000, $8,000, $6,000, $4,000, and $2,000, in that order, are made into a fund that pays interest at a rate of 8% compounded annually. Determine the amount in the fund immediately after the fifth deposit.A fund is being formed by monthly deposit of P2,000 at 6% compounded monthly a) Find the amount after a year b) What is the amount in the fund just after the 5 deposit? c) Construct the sinking fund schedule for a 5 month period.
- Find the amount of each payment to be made into a sinking fund so that enough will be present to accumulate the following amount. Payments are made at the end of each period. The interest rate given is per period. $49,000; money earns 4% compounded semiannually for 13.5 yearsA sinking fund amounting to $21,000 is to be created by making payments at the beginning of every year for 6 years. Interest earned by the fund is 5.9% compounded annually. Determine the size of the penodic payment and compute the interest earned during the fourth payment interval. Verify your answer by checking the sinking fund schedule. The size of the payment is SSix annual deposits in the amounts of $12,000,$10,000, $8,000, $6,000, $4,000, and $2,000, in thatorder, are made into a fund that pays interest at a rateof 7% compounded annually. Determine the amountin the fund immediately after the sixth deposit.
- A debt of $1500 bearing at 12% compounded annually is to be discharged by the sinking fund method. If six annual deposits are made into a fund which pays 6% compounded monthly. a. Find the annual interest payment b. Find the size of the annual deposit into the sinking fund. c. What is the annual cost of this debt? d. Construct the sinking fund schedule. Period Interest Sinking Fund Interest Deposit earned Sinking Fund Balance Net amount loan$2,950 was deposited at the end of every six months for 8 years into a fund earning 4.5% compounded semi-annually. After this period, the accumulated money was left in the account for another 7 years at the same interest rate. a) Calculate the accumulated amount at the end of the 15-year term. $ b) Calculate the total amount of interest earned during the 15-year period.Equal deposits are made into a sinking fund at the end of each year for seven years. Interest is 11.71% compounded annually, and the maturity value of the fund is $23,000. a.) Calculate the size of the annual deposits. b.) Calculate the increase in the fund for the fourth year.
- Payments of $4,000 are made into a fund at the beginning of each year for ten years. The fund is invested at an annual effective rate of i. The interest generated is reinvested at 13%. The total accumulated value at the end of the ten years is $110,000. Find i. (Round your answer to two decimal places.)Six annual deposits in the amount of $4,000, $3,300, $2,600, $1,900, $1,200 and $500, in that order, are made into a fund that pays interest at a rate of 9% compounded annually. Draw cash flow diagram and determine the amount in the fund immediately after the sixth deposit.Find the amount of each payment to be made into a sinking fund earning 7% compounded monthly to accumulate $39,000 over 8 years. Payments are made at the end of each period. The payment size is $