Five years ago, $12, 000 was deposited into a savings account that provides an interest of 6.5% compounded annually. If a uniform amount of $3, 000 was withdrawn yearly starting at the end of the first year after the initial deposit was made, how much money can still be withdrawn now?
Q: What is the future value of a 7%, 5-year ordinary annuity that pays $650 each year? Do not round…
A: Interest rate (r) = 0.07 Annuity period (n) = 5 years Annual payment (A) = $650 Future value = FV…
Q: What is the correlation coefficient of the returns of the stock and the returns of the market?
A: Correlation: It is a measure of statistics used to show the degree of association between two…
Q: Calculate the total deferred payment price.
A: Total Deferred Payment Price: It refers to the total amount paid on the loan borrowed by the…
Q: Compute the price of a 5.0 percent coupon bond with 10 years left to maturity and a market interest…
A: Bond Current Price = C*(((1-(1+r)-n)/r)) + (Mv * (1+r)-n) Where C = Coupon amount Mv = Maturity…
Q: The main goals of microfinance institutions include ALL O a. Serving the largest poor population…
A: Microfinance institutions are very important for growth and expansion of rural based populations and…
Q: Depreciation expense is considered as allowable deduction Select one: True False
A: Depreciation expenditure is the amount depreciated for a specific period (e.g., quarter or year),…
Q: Explain and define deeply the three (3) types of electronic payment. Cite some situational examples.
A: An electronic payment is that payment which is made digitally and in which there is no involvement…
Q: luation) Assume the following: • the investor's required rate of return is 12.5 percent, •…
A: There are two methods of valuation of equity one is P/E multiple based and other is constant growth…
Q: What is the convexity of a coupon bond? Why do investors tend to have a positive view of convexity?
A: Convexity is an indicator of the skewed relationship between bond prices with yields. Convexity…
Q: For the following $1,000-par-value bond, assuming annual interest payment and a 26% tax rate,…
A: The formula for the calculation of after tax cost to maturity is as follows: After tax cost of…
Q: Suppose you have Php 1000 deposited at 4.45% compounded semiannually. About long will it take your…
A: The number of period: The number of periods is the length of time between the present and the…
Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the…
A: Future value of an annuity can be calculated as: = Annuity payment * FVAF (i%, n years)
Q: Due some research and answer the following independent questions in relation to the management of…
A: 3.1 OVERTRADING Let's start with an overtrading definition: overtrading occurs when a business…
Q: One of your friends picks up the Wall Street Journal and starts choking on his decaf skinny…
A: Market value of a company depends on the share price. High share price leads to high market…
Q: A family takes out a $168,500 mortgage at 6.5% interest compounded monthly with monthly payments for…
A: Solution:- When some amount is borrowed, it can either be repaid as lump sum payment or in…
Q: Using a case company of your choice and with relevant examples, examine its financial management…
A:
Q: INA United has 2 companies of the same size, company I sells computers and company II in the…
A: Given: Company WACC suggested by consultant WACC taken by the company Computer company 12% 10%…
Q: What’s the current yield of a 4.15 percent coupon corporate bond quoted at a price of 101.73? (Round…
A: Current yield = Coupon rate × 100/Current market price
Q: Vigo Vacations has $300 million in total assets, $7 million in notes payable, and $35 million in…
A: Debt ratio: The debt ratio measures the proportion of the asset paid for with debt. It is calculated…
Q: Information on four investment proposals is given below: Investment Proposal B C A D Investment…
A: Profitability index is calculated using the formula Profitability index=NPVInitial investment. This…
Q: Jodan received an amount of GHc 1000 from his grandpa as a birthday gift. He decides to invest the…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: Benton is a rental car company that is trying to determine whether to add 25 cars to its fleet. The…
A: The annual cash flow generated from the purchase of the car is depicted in the following table. The…
Q: Agency problem arises due to the divergence or divorce of interest between the principal and the…
A: Since the principals rely on agents to complete some transactions, there is disagreement over…
Q: A company has a capital employed of P 200,000. It has a cost of capital of 12% per year. Its…
A: Return on investment is the ratio that shows the percentage return earned on the investment made by…
Q: Wayne, Inc.'s outstanding common stock is currently selling in the market for $54. Dividends of…
A: Here, Market Price of Share is $54 Last Dividend Per Share is $3.16 Return on Equity is 35%…
Q: Given the following cash flow for a certain investment and a MARR of 12% per year: 0 1 2 3 4 5 6…
A: Here, Cash Flow in Year 0 is -P30,000 Cash Flow in Year 1 is -P 19,000 Cash Flow in Year 2, 3 and 4…
Q: The Canadian CPI is a Paasche price inde year weights). All things equal it will Overstate inflation
A: CPI is measure of consumer prices of goods and this is used to measure changes in prices of goods…
Q: Question 3: Suppose you make $100 quarterly deposits to your saving account which earns an interest…
A: Quarterly deposit (q) = $100 Number of deposits (n) = 12 (i.e. 3 years * 4) Interest rate = 0.15…
Q: Clare Jarrett has just closed a business loan of $400 000 to assist with the purchase of equipment…
A: Yearly payments are the annual payments, which means the total amount expected to be paid yearly…
Q: ) Which stock has more total risk? (b) Which stock has more market risk? (c) Suppose the risk-free…
A: Total Risk: The total risk of a stock is measured by its volatility. Therefore, the higher the…
Q: Jennifer Dawes is a young, vibrant entrepreneur whose business venture, Jennifer Limited, has…
A: We will first describe the benefits of working capital and we then will check the effect of poor…
Q: You always dream to be a millionaire in your entire life and you have only $5,000 to invest now.…
A: Solution:- We know when an amount is invested, it earns interest. The amount initially deposited is…
Q: KSB wants to run a new programme. Estimated fees to be paid by a student is 8000.00. Fixed cost for…
A: Margin of safety: The margin of safety is the difference between a company's expected sales…
Q: 0 years, and the sponsoring agency’s MARR is 11% per year. Annual benefits to the public have been…
A: IRR is a point where present value of cashinflows is equal to present value of cashoutflows.
Q: A store will give you a 1.75% discount on the cost of your purchase if you pay cash today.…
A: The concept of the time value of money states that the same amount of money is worth more today than…
Q: What are the advantages of evaluating fund performance based on Internal Rate of Return (IRR)? Why…
A: The internal rate of return is the expected annual growth rate from an investment. Whenever the IRR…
Q: Which one of the following will increase shareholders' equity, all else held constant? Select…
A: Shareholders/ Owner’s equity: The shareholders are the owners of the company and the shareholders…
Q: While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans…
A: Present value of annuity is the current value of the future payments that are calculated using the…
Q: iii) How much would an investor pay now (beginning of the month) for an annuity, which pays £1,500…
A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…
Q: .Net present value project A .Net present value project B Which investment alternative (if either)…
A: NPV= Present value of cashinflows- Present value of cashoutflows.
Q: Halliford Corporation expects to have earnings this coming year of $2.94 per share. Halliford plans…
A: Data given: EPS this coming year= $2.94 Next 2 years, Retention= 100% 3rd and 4th year, Retention =…
Q: Present value calculation Without referring to the Financial calculator, use the basic formula for…
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Compute the price of a 5.0 percent coupon bond with 10 years left to maturity and a market interest…
A: A discount bond is one that is issued or trades in the market at a lower price than its par or face…
Q: a. What should be the repurchase price? b. How many shares should be repurchased? c. What if the…
A: Treasury stock or repurchased stock are the company’s own stock which is purchased by the company…
Q: st cent
A: A growth model assesses a company's stock by assuming that payments to common equity owners will…
Q: Calculate the probability oF loan default (PD) for Upington Solar Corporatio
A: Probabilty of Loan Default: It represents the probability or likelihood that the borrower will not…
Q: What is WACC? Why do firms compute it? What happens to WACC when the debt level of a firm changes?
A: WACC is the weighted average cost of capital. It is the average cost of raising capital both equity…
Q: Step 2: WACC Weighted average cost of capital is the overall capital of each sources of capital…
A: Here, These are the given information as per the question and the requirement is to calculate the…
Q: QUESTION 5 Which of the following statements is correct? O A. Cash receipts is the total cash…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: A new drill press was purchased for $95,000 by trading in a similar machine that had a book value of…
A: Answer - Step 1 - Calculation of Unrecognized Loss - Particulars Amount Book value of…
Step by step
Solved in 2 steps
- In how many years will it take $18939accumulate to $34247 when you deposited in a savings account that earns 2.9 % compounded annuallyIf $1,500 is deposited in a savings account at the beginning of each year for 20 years (a total number of deposits= 20) and the account draws interest at 8% compounded annually, the value of the account at the end of 20 years will be nearly:(a) $71,400(b)$74,936(c) $74,996(d)$74,144What is the present value of receiving $1,000 at the end of each year for 6 years, assuming 7% interest compounded annually? What amount must be deposited at the bank today to grow to $300 in 5 years, assuming 14% interest compounded semiannually?
- At the start of this year, $10,000 was deposited into an account that earns an effective annual interest rate of 4% per year for 10 years. Another $1,000 will be deposited at the end of each year for years 1-10, also earning 4% per year. All interest earned remains in the account. How much money is in this account at the end of year 10?Suppose that $850,000 is invested in a savings account paying 5.25% interest per year. (Round answers to nearest hundredths or two decimal places.) a) Find the amount in the account after 11 years if interest is compounded monthly. 1 b) Find the amount in the account after 11 years if interest at continuous compound interest. c) How much interest was earned from continuous compounding in the 11 years? d) How long will it take for the amount in the account to grow to $2,000,000 if interest is compounded quarterly?In how many years will it take $17054 accumulate to $32133 when you deposited in a savings account that earns 3.4 % compounded annually ?
- suppose that $2700 is set aside each year and invested in a savings account that pays 8% interest per year, componded continously, part a: determined the accumuluated savings in this account at teh end of 25 yrs. part b: in part a,suppose that an annuity will be withdrawn from savings that have been accumulated at the EOY 25. The annuity will extend from teh EOY 26 to EOY 33, what is the value of this annuity if teh interest rate and componding frquency in part a do not changeYou deposited $8,000 six years ago into a bank account. Two years ago, you deposited an additional amount. Assume an annual interest rate of 14%. In ten years from now, you need to have exactly $89,187.52 in the account? Assume annual compounding. What was the amount of that unknown deposit?You wish to have $20,000 in an account 8 years from now. How much moneymust be deposited in the account now in order to have this amount if theaccount pays 12% compounded annually?(a) $8,490(b) $8,871(c) $7,632(d)$8,078
- If $4,354 is invested at the end of each year for 7 years at 0.05 compounded annually. What is the total dollar amount available upon the deposit of the 7th payment. thankyou for your help :) Will upvote10.Three years ago,an amount of RM3,000 was deposited in a savings account that paid interest at 4.5% compounded quarterly. Today,another RM1,500 is deposited into the account. Find the accumulated amount at the end of eight years from the initial deposit.(RM6167.50)The amount of money that needs to be deposited into an account to reach some future goal is called the present value. The following table gives the present value (to the nearest dollar) for an account that earns 10% compounded annually so that the account value will be $50,000 after intervals ranging from 1 to 7 years. Years Present value 1 $45,455 2 41,322 3 37,566 4 34,151 5 31,046 28,224 7 26,658 (a) Using x as the years and y as the present value (in dollars), develop an exponential model for these data. (Round your numerical values to four decimal places.) y = (b) Use the model to find the present value (to the nearest dollar) of this account for its value to be $50,000 after 13 years. Need Help? Read It