Your father promise to give you RM150 at the end of each month for four years while you attend college. At a discount rate of 3 percent, what are these payments worth to you on the day you enter college? Select one: A. RM6,776.80 B. RM6,793.74 C. RM6,201.16 D. RM6,539.14

Your father promise to give you RM150 at the end of each month for four years while you attend college. At a discount rate of 3 percent, what are these payments worth to you on the day you enter college? Select one: A. RM6,776.80 B. RM6,793.74 C. RM6,201.16 D. RM6,539.14

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.18E

See similar textbooks

Related questions

Q: A man has children aged 12, 15, and 20. He purchases annuities for each one that pay 3,000 per year…

A: Time value concept Money that is received today is of more worth as compared to the money received…

Q: You plan to go to Asia to visit friends in three years' time. The trip is expected to cost a total…

A: Total amount required for the trip is $ 10,000 Maturity amount of certificate of deposit = $ 5,000 *…

Q: To help you reach a $16,000 goal 8 years fromnow, your father offers to give you $4,000 now.You plan…

A: Steps to calculate annual deposits is shown: Calculate the FV of an amount given by the father at…

Q: present value of the tuition fees

A: Introduction: The present value of a series of payments made at the beginning of a particular period…

Q: Fritz buys a car costing $24,300. He agrees to make payments at the end of each monthly period for 8…

A: A loan is an agreement between two parties where a sum is forwarded in return for periodic payments…

Q: If you plan to put your graduation money into an account and leave it for 18 years while you go to…

A: The question is based on the concept of Financial Management.

Q: For numbers 4 to 5: Maria wants to have ₱750,000.00 at the end of 4 years for her graduation…

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: Tony Ring wants to attend Northeast College. He will need $66,000, 4 years from today. Assume Tony's…

A: Future Amount required (fv) = $66,000Interest Rate = 12%Type of Interest Compounded =…

Q: Rochelle Kotter wants to attend a university 5 years from now. She willneed $88,000. Assume…

A: INFORMATION : MONTHLY COMPOUNDING RATE (3%/12) 0.25% YEARS (5*12) 60 PMT (MONTHLY WITHDRAW)…

Q: A financial planning service offers a college savings program. The plan calls for you to make six…

A: Annual Payments = $14,000 Time = 6 years Annual Receipts after 6 years = $25,000 Time = 4 years

Q: Fritz Benjami buys a car costing $14200. He agrees to make payments at the end of each monthly…

A: EMI(EQUATED MONTHLY INSTALLMENT)-It is a fixed payment made by a borrowing party to the lending…

Q: what would the remaining payment look like over five years

A: Future payments are the expected cash payoffs either in the form of cash receipts or cash payments…

Q: Ms. R. would like to buy a mobile home. For this purpose, she takes out a loan on 01.01.2021 Amount…

A: "Hi there, thanks for posting the questions. But as per our Q&A guidelines, we must answer the…

Q: Jeffrey Wei received a 6 year non-subsidized student loan of $30,000 at an annual interest rate of…

A: Present Value = $30,000 Interest Rate = 5.9% Time Period= 6 Years Loan Start after 4 Years

Q: A student plan to deposit P1, 500 in the bank now and another P3, 000 for the next 2 years. If he…

A: Year Deposit Interest Balance 1. 1500 150 1650 2. 3000 165 + 300 5115 3. 3000 511.5 + 300…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…

A: We need to use excel formulas to calculate above requirements.

Q: You receive a $4,000 check from your grandparents for graduation. You decide to save it toward a…

A: Given, Future value is $8,000 Present value is $4,000 Rate is 6%

Q: Tony Ring wants to attend Northeast College. He will need $60,000 4 years from today. Assume Tony’s…

A: The present value function or formula can be used to derive the present value of a future sum or…

Q: Suppose that you take out a federal direct loan on September 1 before your senior year for $7500…

Q: Anna receives $1,000 on the first of each month. Josh receives $1,000 on the last day of each month.…

A: Present value of the annuity is the present value of streams of periodic cash flows that occur at…

Q: nim to receive $3000 each month for 5 years, beginning 18 4.2% p invest the money today in an…

A: Here we will use the concept of time value of money to answer the questions.

Q: Karen deposits P100 at the beginning of each month into an annuity that pays a 6% annual interest at…

A: We need to use future value of annuity due formula to calculate amount in account at end of 5 years.…

Q: Mrs. R. would like to buy a mobile home. To this end, she takes out a loan of 80,000 euros on…

A: Mortgage refers to the borrowed amount of funds that is taken from financial institutions, such as…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…

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

Q: Fritz Benjamin buys a car costing $14200. He agrees to make payments at the end of each monthly…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Q: A father wants to set up a bank account that will pay his daughter $16,000 at the end of quarter…

A: The investor must have an approach to invest their funds based on goals-based investment i.e. they…

Q: A grandmother has a granddaughter entering university next year. Her granddaughter expects to remain…

A: Semi-annual Payment 50,000.00 ₽ Interest Rate 4.30%

Q: Harry Taylor plans to pay an ordinary annuity of $6,000 annually for ten years so he can take a…

A: Ordinary Annuity is series to equalized payments received or made over periodic interval at end of…

Q: Upon graduation, Terrence purchases a home theatre system through financing $5,000 by his credit…

A: Financed Amount is $5,000 Interest Rate is 21% Compounding Period is Monthly i.e 12 Payment in first…

Q: Your daughter will start college one year from today, at which time the first tuition payment of…

A: We need to use present value of annuity formula to calculate the amount that you need today in your…

Q: Mick plans to start saving money for retirement. By taking 10% of monthly gross income. Mick is able…

A: We can use the concept of time value of money here. As per the concept of time value of money the…

Q: A father decides to invest k300 each month at 12% per year compounded monthly to pay for his 12 year…

A: Data given: pmt= k 300 r=12% (compounded monthly) n=17-12 =5 years

Q: You will be in graduate school for the next two years. You borrowed some money from the bank for…

A: Monthly Payment $ 950.00 Monthly payment increase by 2% Time period 5 Beginning of payment…

Q: Engr. Russel Clarete loan an amount of P200,000 at a local commercial bank at 12% compounded…

A: The series of monthly payments discussed here is a form of annuity wherein an equal payment is made…

Q: Samuel Ng received a 3-year subsidized student loan of $15,000 at an annual interest rate of 4%.…

A: Given that: Loan Amount (A)= $15000 Time(t)= 3 years Number of payments per year (n)= 12 Annual…

Q: Engr. Salvador has to pay her bill in credit card in instalment basis. First payment is P50,000 at…

A: Calculation of total payment of Engr. Salvador after 10 years at the rate of 10% per annum: Payment…

Q: Assume today is 1 September, and this is the birthday of your two children, Ashley and Alex. Ashley…

A: Annuity refers to series of equalized payments that are paid or received at start or ending of…

Q: he college tuition is expected to increase with an average of 5% per year for the next 5 years. The…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…

A: We will apply the formula for calculating the future value of the money so that we can calculate the…

Q: Suppose that you take out an unsubsidized Stafford loan on September 1 before your junior year for…

A: An unsubsidized student loan is a loan on which interest starts accruing the day money is deposited…

Q: B) Pinky's father is planning to admit her in a reputed university 5 years from now. Pinky is…

A: N = Time Period after which university starts = 5 years T = Time period of graduation = 4 years…

Q: how large must each payment be for you to end up with $1,000 on January 1, 2022?

A: Time value of money (TVM) means that the amount of money received in the present period will have…

Q: a) Parents wish to provide $40,000 for their child to assist with her education. They deposit $200…

A: Future Value Required = 40,000 Deposit = 200 End of month deposits Monthly Compounding, Number of…

Q: A person decides to pay at the beginning of each semester for 6 years the sum of $3315. Calculate…

A: The interest rate is the rate at which the specific amount is accumulated at the end of the period…

Q: ou decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…

A: The question is based on the concept of Annuities. Annuity refers to the series of equal payments or…

Question

Select one:

A. RM6,776.80

B. RM6,793.74

C. RM6,201.16

D. RM6,539.14

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Your grandmother will be gifting you $150 at the end of each month for four years while you attend college. At an annual discount rate of 3.7 percent, what are these payments worth to you on the day you enter college? A. $6, 201.16 B. $ 6,539.14 C. $6,608.87 D. $6,682.99 E. $6,870.23
Your grandmother is gifting you GH¢ 100 a month for four years while you attend University to earn your Bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college? #randomized O A. GH¢ 4,201.16 O B. GH¢ 4,299.88 O C. GH¢ 4,509.19 O D. GH¢ 4,608.87
22. Your grandmother is gifting you GH¢ 100 a month for four to earn your Bachelor's degree. At a 5.5 percent discount rate, what are these payments worth to you on the day you enter college? a. GH¢ 4,201.16 b: GH¢ 4,299.88 c. GH¢ 4,509.19 d. GH¢ 4,608.87 GH¢ 4,800.00 years while you attend University e.
Suppose you receive $500 in graduation money. You decide to put it into an account paying 5%. If you deposit $175 into that same account every month for 7 years, how much money will you have at the end? $14,700.00 B $15,200.00 $16,195.49 $18,266.53 (E) $25,482.80
Your daughter will start college one year from today, at which time the first tuition payment of \$58,000$58,000 must be made. Assume that tuition does not increase over time and that your daughter remains in school for four years. How much money do you need today in your savings account, earning 5\%5% per annum, in order to make the tuition payments over the next four years, provided that you have to pay 35\%35% per annum in taxes on any earnings (e.g., interest on the savings)?
You've been awarded a scholarship that pays $220 a month for 5 years while you are in college. At a 5 percent annual discount rate with monthly compounding, what are these payments worth to you when you first start college? Assume the first payment will be received at the end of the month. O $11,657.96 O $13,200.00 O $11,427.96 $11,938.96 O $10,365.00
You want to have $49,000 in your savings account 4 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 6.7 percent interest, what amount must you deposit each year? Multiple Choice $3,282.96 $11,085.33 $14,206.71
You need to accumulate $92000 for your child's college education 19 years from now. How much do you need to save each year if you can earn 4 percent after taxes on your investment, assuming that you will make annual end-of-year payments into the account? O $2461.28 O $3324.75 O $3012.54 O $2725.12
You are saving money for your daughter's private school tuition of $110,000, which is needed in 9 years. To this end, you decide to deposit an amount into a savings account with 4% nominal rate compounded monthly. Assuming you make no other deposits, how much would your initial deposit need to be? a. $67,073.23 b. $70,313.49 c. $73,555.96 d. $76,790.35
A friend wants to borrow money from you. He states that he will pay you $3,900 every 6 months for 7 years with the first payment exactly 7 years and six months from today. The interest rate is 6.2 percent compounded semiannually. What is the value of the payments today? Multiple Choice $35,805.70 $28,718.70 $29,488.70 $27,679.39
Your daughter will start college one year from today, at which time the first tuition payment of \$58,000$58,000 must be made. Assuming that tuition does not increase over time and that your daughter remains in school for four years, how much money do you need today in your savings account, earning 5\%5% per annum, in order to make the tuition payments over the next four years?
How much money does Suzie need to have in her retirement savings account today if she wishes to withdraw $25,000 a year for 3 years? She expects to earn an average rate of return of 13 percent. A. $59,028.81 OB. $65,419.81 OC. $71,533.33 OD. $85,160.98 E. $87,391.34