An investment banker would like to receive $1,200 at the beginning of every 3 months from her investment fund for a period of 10 years. The fund is earning 3.3% compounded quarterly. Calculate the amount of money she should deposit if the first payment is to be received in 5 years and 9 months. Round to the nearest cent
Q: 5. Determine the capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
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: Suppose, spot Rate is $1 = Tk. 79.20 - 80.40 Calculate swap points for 3 months, when interest…
A: Swap Points: It is difference in interest rates in between transaction currencies.
Q: The Jacob Chemical Company is considering building a new potassium sulfate plant. The following cash…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
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: With a higher rate of pre-payments, which of the following is true for a mortgage-backed bond: The…
A: A high rate of prepayment means that there is a high chance of paying back the mortgage amount is…
Q: Boiser deposited part of her royalty in a bank at the end of each year for 10 years. The bank paid…
A: We need to use future value of ordinary annuity formula to calculate total amount of deposited…
Q: period. If interest is 8% compounded semiannually, what is the required semiannual to be made?
A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…
Q: An investment of F650 is made at the beginning of six months for 10 years and 6 months. How much…
A: An annuity is the total of all periodic payments or investments made at a fixed rate over a certain…
Q: Simple Balance Sheet For Bank A Liabilities + Net Worth Assets $40,000 U.S. Treasury Securities…
A: According to the Accounting Equation Assets = Liabilities + Worth For every $1 of U.S securties in…
Q: A mortgage for a condominium had a principal balance of $41,400 that had to be amortized over the…
A: Time value of money concept is used for calculation of monthly instalments and calculation of number…
Q: 1. Explain the difference between Initial Margin and Maintenance margin in stock trading.
A: In the world of finance and investing margin is an important concept. It refers to the collateral…
Q: Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed…
A: The cash generated by an organization from core business operations are called operating cash flows.…
Q: A A zero Coupon IS a bond that is Sold now at a discount and will pay its Cace value at Some time in…
A: Bond is the debt security that investors uses to reduce the risk and increase stable return from…
Q: Niña signs a 90-day simple discount note with a face value of P45,000 and proceeds of 43,706.25.…
A: Time period of note is 90 days Face Value of note is P45000 Net Proceeds are of P43,706.25 To Find:…
Q: Compute for the Day Sales Outstanding of Company X and Y. Compare each other. Use 360 days.…
A: Accounts receivables for company X are P452,100 Accounts receivables for company Y are P233,200…
Q: A put option in finance allows you to sell a share of stock at a given price in the future. There…
A: Number of shares purchased =200 Purchasing price= $28, No. of put options bought =65 put options…
Q: Hayward Enterprises, a successful imaging products firm, is considering expanding into the lucrative…
A: Revenue in year 1 = 1,800,000 Revenue in Year 3 = 1,800,000 *(1+0.11)2 = 2,217,780 Operating costs…
Q: An investment banker would like to receive $1,200 at the beginning of every 3 months from her…
A: Quarterly receipt (P) = $1200 Period = 10 Years Number of quarterly payments (n) = 10*4 = 40…
Q: Morphosis Pty(Ltd) is an investment bank that plans to offer a bursary in five years time to one…
A:
Q: eBook Problem Waltk-Through Edelman Engines has $20 billion in total assets – of which cash and…
A: Data given: Book value of common equity = $ 6 billion No. of common stock outstanding = 300 million…
Q: Given a 10% interest rate, what is the equivalent uniform annual worth of a system, given the…
A: The equal annual net cash flow is known as the equivalent uniform annual worth. It is calculated by…
Q: Bianca & John saved a deposit for $500,000 to buy their first investment property with a market…
A: The amount invested is $500,000 Market value of property one year ago is $1,500,000. property…
Q: What is the relationship between return on capital investment and the risk associated with the…
A: Return on invested capital is referred as an amount of the funds of the corporation, which helps in…
Q: Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4000 to…
A: The PV annuity formula for monthly payment of loan is: PV=PMT×1-(1+i)-ni Here PV=4000 PMT=? n=60…
Q: 4. GN Power is a generating company and LANECO is a retailer. These two companies are negotiating a…
A: GN Power is a power generation company, and LANECO is a retail company. According to the information…
Q: y-year annuity pays $940 per month at the end of each month. For the first seven years, the nominal…
A: As the compounding increases the interest rate become more effective and more is future value and…
Q: The Federal Reserve Bank's goal is to increase the amount in lending in the economy by $102,000. If…
A: The amount of securities purchase will be calculated by multiplier formula Securities purchased…
Q: James received a 15 year loan of $230,000 to purchase a house. The interest rate on the loan was…
A: Working Note #1 Loan amount ($) 230000 N (years) 15 Period 180 Rate(Compounded annually)…
Q: Torch Industries can issue perpetual preferred stock at a price of $61.00 a share. The stock would…
A: Cost of preferred stock = Annual dividend / Stock price where, Annual dividend = $4.50 Stock price =…
Q: CSL Corporation is a mid-sized transportation firm with 10 million shares outstanding, trading at $…
A: Cost of capital is defined as the cost, which represents the company's return for achieving for the…
Q: A credit card company determines a card holder's minimum monthly payment by adding all new interest…
A: Total outstanding principal = $592+$429+$120+$104Total outstanding principal = $1245 Total days till…
Q: The empirical evidence on unemployment spell durations suggests that workers who leave unemployment…
A: Empirical evidence is data gathered by researchers to aid in the discovery of answers to questions…
Q: S180.000 mortgage was amortized over 15 years by monthly repayments. The nerest rate on the mortgage…
A: Loans are paid by the monthly payments that carry the payment of interest and payment of principal…
Q: The Hills obtain a 30-year, $144,000 conventional mortgage at a 4.5% rate on a house selling for…
A: Here, Cost of House is $180,000 Mortgage Amount is $144,000 Interest Rate is 4.5% Time Period of…
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: Find the semi-annual payment at the end of every six months, the first payment is due at the end of…
A: Compound Interest: It is the interest on a loan or deposit that is calculated based on both the…
Q: Out of the following options please tell me which are two dimensions or the main aspects of…
A: Budgeting is the process of making a plan for how person or organization will spend the money. A…
Q: Landon Wallin is an auto mechanic who wishes to start his own business. He will need $4900 to…
A: Monthly finance charge is defined as any charge that comes into existence due to use of credit card.…
Q: A mortgage for a condominium had a principal palance of $41,400 that had to be amortized over the…
A: The mortgage payments are paid by equated monthly payments that carry the payment for interest and…
Q: What does the usage of technical analysis mean for the theory of market efficiency?
A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…
Q: Explain what type of firms a Buyout Fund (or a Private Equity Fund) might target as part of a…
A: A leveraged buyout (LBO) is a type of business acquisition in which the vast majority of the cost of…
Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…
A: a) Total Asset Turnover Ratio: i) Carson Inc = ( Net Sales / Total asset ) = 48,000 /24,000 = 2 ii)…
Q: Two years ago Agro Inc., purchased an ACE generator that cost $300,000. Agro had to pay an…
A: After tax proceeds from the sales of the assets will be the amount recovered from selling the…
Q: Maria's retirement fund has an accumulated amount of $50,000. If it has been earning interest at…
A: Given that: Monthly Interest rate =2.86%/12 =0.002383333%Quarterlyrate=(1+0.002383333)3-1=0.0071669…
Q: 3. A stock price is currently $100. It is known that after 3 months it will either go up by 10% or…
A: Solution : If Value of Call was come lower as compared to Current price of call in market then…
Q: Laura received a 15 year loan of $245,000 to purchase an RV. The interest rate on the loan was 4.10%…
A: Price of RV $ 2,45,000.00 Time Period 15 Interest Rate 4.10% Lumsum at end of every 4…
Q: A mortgage for a condominium had a principal balance of $41,400 that had to be amortized over the…
A: Principal (P) = $41400 n = 8 years = 96 months Interest rate = 3.02% compounded semiannually Monthly…
Q: Consider the following bonds: What is the percentage change in the price of each bond if its yield…
A: Price of a bond = sum of present values of all cash flows that will occur in future. The present…
Q: a. Compute the net present value of each opportunity. Which should Mr. Kearns adopt based on the net…
A: Net Present Value: Net present value is the profitability of a project in dollar terms. It is…
Step by step
Solved in 2 steps
- Garrett wants to accumulate at least $35,000 by depositing $1,500 at the end of each month into a fund that earns interest at 4.5% compounded monthly. a. How many deposits does she need to make in order to reach her goal? Round to the next payment b. How long will it take Garrett to reach her goal? o year(s) o month(s) Express the answer in years and months, rounded to the next payment periodBetty Jo will make deposits of 500 into a fund at the end of each month for five years. At the end of ten years, she will use the fund to make annual withdrawals of X at the beginning of each year for five years, after which the fund will be exhausted. The annual effective interest rate is 6%. Determine X.An engineer who is saving for her retirement plans to deposit $500 every semiannually,starting after six months from now, into an investment account. If the account pays interestat 12% per year, compounded quarterly, the total she will have at the end of 25 years is closestto: (Draw the Cashflow)
- Ted Houser wishes to accumulate a fund of $40,000 for the purchase of a house and lot. He plans to deposit $4,000 semiannually at the end of each 6 months. Assuming interest at 14% a year compounded semiannually, how many deposits of $4,000 each will be required, and what is the amount of the last deposit?Cynthia wants to accumulate at least $40,000 by depositing $1,200 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does she need to make in order to reach her goal? Round to the next payment b. How long will it take Cynthia to reach her goal? year(s) month(s) Express the answer in years and months, rounded to the next payment periodCindy Medavoy will invest $6,740 a year for 23 years in a fund that will earn 5% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 23 years? If the first payment occurs at year-end, what amount will be in the fund in 23 years? First payment today First payment at year-end
- Gregory's investment manager offers her an interest rate of 9.00% compounded monthly on her investments. How much more money would she have to deposit at the end of every month for her fund to accumulate to $599,000.00 in 12 years if the interest rate was 9.00% compounded annually?Sally Medavoy will invest $8,000 a year for 20 years in a fund that will earn 6% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years?David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does he need to make in order to reach his goal? Round to the next payment b. How long will it take David to reach his goal? year(s) month(s) Express the answer in years and months, rounded to the next payment period
- A woman expects to have $10,000 in 4 years to buy a pair of earrings. She plans to create a sinking fund by depositing an amount every 6 months. If the fund earns 16% interest compounded semi-annually, find the semi-annual deposit and construct a sinking fund schedule.Angela invested $10, 500 into a fund earning 7.75% compounded monthly. She plans to withdraw $850 from the fund at the end of every quarter. If the first annuity withdrawal is to be made 2 years from now, how long will it take for the fund to be depleted?Juan invested $10,500 into a fund earning 7.50% compounded monthly. She plans to withdraw $700 from the fund at the end of every quarter. If the first annuity withdrawal is to be made 5 years from now, how long will it take for the fund to be depleted?