What is the present value of monthly payments of $400 for 5 years followed by monthly payments of $800 for 10 years (first payment one month from now) if i =j12/12 ? You are given: а6⁰|i 53.24887, a120|į = 95.15597, (A) $97,424.32 (B) $81,210.05 = a180 i 128.137 = (C) $44,661.48 (D) $75,238.16

What is the present value of monthly payments of $400 for 5 years followed by monthly payments of $800 for 10 years (first payment one month from now) if i =j12/12 ? You are given: а6⁰|i 53.24887, a120|į = 95.15597, (A) $97,424.32 (B) $81,210.05 = a180 i 128.137 = (C) $44,661.48 (D) $75,238.16

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Related questions

Q: Francine can choose to invest in the following three stocks with the given characteristics: Stock A:…

A: Solution: Beta is the sensitivity of the return of stock against the market portfolio. It measures…

Q: You borrow $2600 at 6% APR to purchase a computer. You plan to make monthly payments of $28.86 until…

A: The amortization table is a presentation method of installment payments, interest amount…

Q: 1. A French Investor buys AAPL stock at the beginning of the year for $150 dollars. He had Euros but…

A: Here the rates are quoted as USD.EUR. This means that the value provided is value of 1 USD in Euro…

Q: Explain what is meant by the term 'factoring' for receivables and explain a typical financing…

A: Many small businesses find it difficult to secure funding for new initiatives as they wait for their…

Q: A change in the risk premium, E(Rm) - Rf, results in... Group of answer choices 1. A change in…

A: concept. security market line (SML) gives the market’s expected return at different levels of…

Q: Suppose it's January 2021 and you would like to estimate the unlevered cost of capital (r) for Atlas…

A: Concept. Cost of unlevered capital = Rf +( unlevered beta × market risk premium) Unlevered beta =…

Q: Tribbles-R-Us has 200,000 shares outstanding and just paid a $0.25 per share dividend. The market…

A: Solution: Capital Asset Pricing Model (CAPM) is a model which gives a formula to calculate the…

Q: 3.2 Roberts & Sons Company purchased a machine that cost R50, 000 and will last 5 years. A salvage…

Q: RatePicker Co.'s bonds, issued 2 years ago, currently sell for $1,076. They have an annual coupa…

A: Yield to maturity of bond is rate of return realized on the bond when that is held till maturity and…

Q: The Lumber Yard is considering adding a new product line that is expected to increase annual sales…

A: Depreciation is the decrease in the value of fixed assets. The cost of the fixed assets is allocated…

Q: Why might the S&P500 index be a better measure of stock market performance than the DJIA? Why is the…

A: Standard and poor 500 is a value weighted index and Dow Jones is the price weighted index. Standard…

Q: common stock of Leaning Tower of Pita, Inc., a restaurant chain, will generate the following payoffs…

A: Standard deviation is measure of risk of return of the stock and more is standard deviation than…

Q: Guelph Inc. would like you to assess the after-tax viability of a new machine using annual worth…

A: An annual worth analysis is a widely used technique for assessing the viability of an investment. It…

Q: Pari Corporation is planning a 20 year project with an initial investment of $10 million. The…

A: Solution:- Internal Rate of Return (IRR) is the rate of return the project is yielding. It can be…

Q: QUESTION 8 Auto Loans R Them loans your $24,000 for four years to buy a car. The loan must be repaid…

A: Annual payments or periodic payments on a loan can be calculated using the PMT Function in excel.…

Q: If the present value of an ordinary, 8-year annuity is $6,100 and interest rates are 8.0 percent,…

A: Present value of ordinary annuity = $6,100 Interest rate = 0.08 Present value of annuity due = ?

Q: ii. iii. Calculate the equivalent level effective rate of return over the four year-period. If…

A: Year Balance Return 2016 5000.00 2017 5175.00 3.5% 2018 5394.94 4.25% 2019 5705.15…

Q: Given the following information for Notten Power Co., find the WACC. Assume the company tax rate is…

A: WACC OR Weighted average cost of capital = ((Weight of equity or we)*(Cost of equity or ke) +…

Q: he Face Value of a Bond is £1000, the Maturity is 4 years, Yield is 3%, the Frequency of yield is…

A: The price of bond is the present value of coupon payment and present value of par value of bond…

Q: A foreign exchange trader with a U.S. bank took a speculative short position of £3,000,000 when the…

A: Profit/Loss arising from the trade = Total Pounds * ( Exchange rate per pound when long position…

Q: The treasurer of a major U.S. firm has $30 million to invest for three months. The interest rate in…

A: Investment refers to the financial asset that is to be bought and sold at profit at some future…

Q: Angela is planning for her daughter’s university education in seven (7) years’ time. She estimated…

A: Annual payment required to achieve the goal is calculated using following equation Annual payment =…

Q: How many years (and months) will it take $2 million to grow to $6.20 million with an annual interest…

A: Initial value (I) = $2 million Future value (FV) = $6.20 million Interest rate (r) = 0.07 Period (n)…

Q: As the current CFO, you are responsible for presenting the dividend policy decisions to the Board of…

A: We need to estimate the impact on the share price due to change in dividend policy.

Q: Let’s pretend in its effort to control inflation, the Federal Reserve raises the federal funds…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: What is the present value of a $1,450 payment made in seven years when the discount rate is 10…

A: Future value (FV) = $1,450 Discount rate (r) = 0.10 Period (n) = 7 years Present value = ?

Q: You are considering a position as the director of finance in a company listed on the Lusaka…

A: Financial contracts recognized as call options provide the option buyer the right, but not the duty,…

Q: Stock XYZ is trading at $42.60. The Oct 2020 40 call is selling at $2.8 and the 2020 40 put is…

A: The break even point indicates a point where the option neither makes a profit nor a loss. For a put…

Q: What is the payback period for the project described below? Machine investment $24,999 MARR 10%…

A: We need to find the discounted payback period here. As a first step we need to find the PV of the…

Q: I was already given the correct answer for Parts A-C. The equation I was given was = -(1.4+6)+…

A: Given: Vacant lot = $1.4 million Hotel cost = $6 million With tax Cash flows =$500,000 With out tax…

Q: Q17. Which of the following is correct? Group of answer choices 1. Forwards are more flexible than…

A: concept. Forward and futures contracts are derivatives that involve two parties who agree to buy or…

Q: Can you provide a manual written working of calculating covariance with MP? I am very much still…

A: Formula for covariance is: Covariance(XY)=∑P*(X-X) *(Y-Y) Where P=Probability X⇀ = Average of the…

Q: revious year t by investor beginning of year urn for the year s or (loss) investor of year 1 0 100…

A: Money weighted return is basically internal rate of return (IRR) for the given series of cash flows.…

Q: Question 2 - UNIT 2: CAPITAL BUDGETTING PROCESS UNIT 3: CASH FLOW ESTIMATION Adler is…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Jackpot Amount Interest Rate Equal Annual Payments Present Value (in dollars) $15,000,000 7%…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: What is the future value of a $830 annuity payment over six years if interest rates are 10 percent?…

A: We will use the below formula to calculate the future value Future value = P*[(1+r)n-1]/r Where P…

Q: .(True or False) Risk shifting refers to a situation in which management of a firm with risky debt…

A: Risk Risk The chance of loss in an investment or the uncertainties involved in an investment is…

Q: Bond has a duration of 3.15 and a convexity of 200. The yield of the bond is 5% what is the best…

A: Bond duration is used to measure how the price of the bond changes with the interest rate. Bond…

Q: ashina Enterprises is considering a new project. The project will require $307,985 for new fixed…

A: Concept. Net present value is capital budgeting technique used for making investment decisions. It…

Q: Which of the following statements are INCORRECT? I Beta measures non-diversifiable risk. II…

A: Given The investment made by an investor basing on the factors return and risk. The higher the risk,…

Q: The part of finance concerned with design and delivery of advice and financial products to…

A: Finance is the amount of money needed to run a business. Finance is the study of banking, capital…

Q: What annual interest rate would you need to earn if you wanted a $600 per month contribution to grow…

A: Monthly payment (PMT) = $600 Future value (FV) = $46,500 Number of payments (NPER) = 72 (i.e. 6…

Q: Q20 A local furniture store is advertising a deal in which you buy a $4,300 living room set with…

A: Solution: An amount is invested somewhere, it earns interest on it. Payment initially deposited is…

Q: Afin-Super is the largest superannuation and pension fund in Macquarieland. To promote pension and…

A: Macaulay duration-It can be defined as the weighted average term to maturity of the cash flows from…

Q: By successive computations, using the present value of $1 table in Exhibit 5. Round to the nearest…

A: Formula used: PV @r%=1(1+r%)n

Q: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend…

A: The stock price in 3 years can be found using the dividend discount model. This model states that…

Q: Lincoln Manufacturing is considering starting a new line of business with the excess capacity it…

A: Given: Particulars Amount New machine cost $100,000 Interest rate 7% Years 6 Replaced in…

Q: Over the past six months, Six Flags conducted a marketing study on improving their park experience.…

A: Given, Cost of roller coaster is $50 million Installation amount is $5 million

Q: Fluctuations of a security's return that are due to market-wide news representing common risk is the…

A: 1) Idiosyncratic risk refers to the risk that negatively effects individual securities or a very…

Q: ABC Co. and XYZ Co. are identical firms in all respects except for their capital structure. ABC is…

A: We have to apply the MM hypothesis and propositions illustrating the principles that in the absence…

Question

F 1.

30. What is the present value of monthly payments of $400 for 5 years followed by monthly payments
of $800 for 10 years (first payment one month from now) if i = j₁2/12 ?
You are given: a60i = 53.24887, a120i = 95.15597,
a180|i
(A) $97,424.32
(B) $81,210.05
(C) $44,661.48
= 128.137
(D) $75,238.16

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Given

VIEW

Calculation of the present value of monthly payment is as follow:

VIEW

Answer

VIEW

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

Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.a.) At 3% compounded monthly, how much will you have accumulated at the end of 5 years?b.) How much difference would it make if the payments were made at the beginning of the monthrather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63 please show clear solution, the answer has already been given. (although if its wrong please write the answer and solution anyway)
Approximately, what is the value of (P) if F=9560, n=3 years, and i= 3.5% per year? Select one: O a. 11555 O b. 8623 O c. 7158 O d. 10348
What is the total future value ten years from now of $400 received in 1 year, $350 received in 2 years and $900 received in 8 years if the interest rate is 5% per year? O a $2,047.15 O b. $2,100.11 Oc $2,299.15 Od. $2,129.89 O e. $2.254.44
May I ask for an explanation and solution to the question for a better understanding. Thank you! 15. You expect to receive P1,000 at the END of each of the next 3 years. You will deposit these payments into an account which pays 10 percent, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year? a. P1,331.00 b. P1,340.10 c. P3,318.01 d. P1,157.63
Find the shown annual payments if the future worth ( F) equal 892371 $ i need solutions in 10 minutes please
May I ask for an explanation and solution to the question for a better understanding. Thank you! 1. If you invest P8,000 at 6.6% interest, compounding monthly, how much will you have in 3½ years? a. P10,072.50 b. P10,010.64 c. P29,848.00 d. P8,155.09
May I ask for an explanation and solution to the question for a better understanding. Thank you! 9. You expect to receive P1,000 at the end of each of the next 3 years. You will deposit these payments into an account which pays 10%, compounded semiannually. What is the future value of these payments, that is, the value at the end of the third year? a. P665.50 b. P7,986.00 c. P3,318.01 d. P3,993.00
a. What is the present value of 15 annual payments of $100, with the first payment one year from now, if the discount rate is 0.05? b. What is the present value of 15 annual payments of $100, with the first payment right now, if the discount rate is 0.05? c. What is the present value of 15 annual payments of $100, with the first payment five years from now, if the discount rate is 0.05? d. At what discount rate would the present value of 15 annual payments of $100, with the first payment right now, be 0? e. How many annual payments of $100, with the first payment right now, would it take to be worth more than $1,000, if the discount rate is 0.05? f. What is the value of 15 annual payments which begin at $100 one year from now and increase at 2% per year thereafter, if the discount rate is 0.05?
What's the future value of $15,000 after 11 years if the appropriate interest rate is 10.75%, compounded annually?Round your answer to two decimal places. For example, if your answer is $345.667 enter as 345.67 and if your answer is .05718 or 5.718% enter as 5.72 in the answer box provided. A. $54,419.48 B. $53,497.11 C. $38,278.11 D. $42,889.93 E. $46,118.20
Q1: Calculate (PW) for annual payments (900$/year) if the first payment will deposit at the present time, and the last one will deposit at begin of the ninth year? If you know that it's on deposit at the fifth year, and the interest rate is (15%)!
a) What is the present value of the following payment series when the interest rate is 3% YR1 = $200YR2 = $100YR3 = $370YR4 = $370YR5 = $370YR6 = $-300 b) Convert the above payment series to a uniform payment series over 5 years, starting at year 1. c) Convert the payment series in question 6 to a uniform payment series over 3 years starting at year 3.
Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. O A. $2742.53 B. $2632.45 O C. $1967.25 OD. $2572.50 O E. None of the above is a possible number.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS