4. On retirement, Gilbert finds that his share of a pension fund is P1 500 000. If the fund is invested at 6% compounded quarterly, how many years will Gilbert expect to receive P30 to 0 every three months from his investment?
Q: It is a fact that teachers receive very meager salaries. Do you think this is an injustice? Explain ...
A: Teachers are the foundation of a nation's future as they educate children and guarantee a society of...
Q: You've decided to buy a house that is valued at $1 million. You have $250,000 to use as a down payme...
A: Mortgage Payment: It is the payment of mortgage amortization paid by the borrower to the lender. Th...
Q: 2. Interpreting Bond Yields Suppose you buy a 7 percent coupon, 20-year bond today when it's first i...
A: Solution: Since only Question 2 is reflecting full, so only solution to that question is mentioned b...
Q: Statement of Cash , select the false statement a.The cash received from the sale of goods is a cash ...
A: A statement of cash shows the different sources of cash (i.e. cash inflows) and the different uses o...
Q: n you take your job, you decide to start saving for your retirement. You put P3k per year into the c...
A: There is need of proper planning for retirement and that you must do as early as possible so that re...
Q: The firm is contemplating the following (base case): Vehicle acquisition cost ...
A: To find the profit, first, we should calculate the depreciation and will add in the operating expens...
Q: The firm is contemplating the following (base case): Vehicle acquisition cost ...
A: Internal rate of the return (IRR) of a project can be defined as the actual rate of return as expect...
Q: The amount that one Euroland nation borrows has no effect on the borrowing cost that other Euroland ...
A: the Euroland nation consist of 19 countries namely Austria, Belgium, Cyprus, Estonia, Finland, Franc...
Q: 3. Bond Prices Vulcan, Inc., has 7 percent coupon bonds on the market that have 13 years left to mat...
A: Par value (P) = $1000 n = Years till maturity = 13 Coupon (C) = 7% of P = $70 r = YTM = 8.4%
Q: Question 10 OPS Invest PLC issues a 4-year maturity 9% Coupon Bonds to finance a sustainable solar e...
A: Bonds are one of the methods used by the government and corporate units to raise funds from the publ...
Q: You deposit $2000 in a risky investment that loses 3 % interest yeaçly. Unfortunately, the money is ...
A: Future Value: The future value is the amount that will be received at the end of a certain period. T...
Q: The firm gets one-half of its capital from stock, and the other half from bonds. The debtholder’s re...
A: The weighted average cost of capital is the average cost of capital of a firm which is calculated fr...
Q: What type of model is this showing?
A: Valuation models: There are three models that investors can employ to determine the intrinsic value ...
Q: What ODE does the last function satisfy? Let the initial investment be $1000 andr=6%. Compute the va...
A: Initial investment is $1,000 Rate of interest is 6% To Find: Value of investment after 1 year. Valu...
Q: Which of the following statements (is) are TRUE about credit evaluation? I. In terms of down payment...
A: Credit evaluation means accessing the financial condition and records of the borrower to know that h...
Q: lease solve the all and the long expalaining im needed max in 30 minutes and no reject thank u ...
A: Analyzing potential loss through the investment in stocks and taking appropriate actions to mitigate...
Q: with the age of 25, Anthony establishes an Individual Retirement Account (IRA). If he invests P10,0...
A: The account value at age of 55 can be calculated with the help of future value of annuity.
Q: Honda Motor Company is considering offering a $1,800 rebate on its minivan, lowering the vehicle's p...
A: Incremental profits are calculated as the difference between the profit earned before offering rebat...
Q: AMS Company has unexpectedly generated a one-time extra $5 million in cash flow this year. After ann...
A: Decision making is a process of choosing between the alternatives and selecting the best alternative...
Q: A %500,000 mortgage is amortized over 25 years with monthly payments at an interest rate of 4% compo...
A: Mortgage are paid by monthly payment that carry payment for interest and payment principal amount.
Q: Compute the following for year 2017 1. Gross Margin Ratio 2. Operating Profit Margin 3. Net Profit M...
A: The question is related to Ratio Analysis. The ratio are calculated with the help of following formu...
Q: Which of the following statements is false? A. Moral hazard is the lack of incentive to guard ag...
A: Analysis of the options: A: Moral hazard is the lack of incentive to guard against risk where one ...
Q: If RRSP contributions of $3730.02 at the end of every six months are projected to generate a plan wo...
A: The nominal rate of return can be defined as the return which does not consider the compounding effe...
Q: An private firm can buy a machine for $ 40,000. A down payment of $ 4,000 is required and the balanc...
A: The annual equivalency method is used to compare the two similar projects with the unequal term. Und...
Q: lain Types of share analysis to va
A: Step 1 The stock market analysis enables investors to identify the insider's value even before inv...
Q: compounded). What is a low such that there are arbitrage below the lower bound and r it is above the...
A: lower bound = Ke^- rT -S0 k= 56.63 r=4% T=2 S0=48.08
Q: You need to choose between making a public offering and arranging a private placement. In each case,...
A: Companies raise the funds by issuing various securities. Debt is one of the major sources of raising...
Q: The report should contain the following : -Introduction about the banks -Reasons for merger - Advant...
A: Bank is a financial institution which helps in the wealth creation through investments. Also, banks ...
Q: Answer the next 4 questions using the information in the following table. You are considering the pu...
A: Bid price is the buying price at which the investors will buy the T bill. Ask price is the price at ...
Q: In the textbook's capital budgeting examples, the book assumes that the firm recovers all of its wor...
A: The difference between a company's current assets and current liabilities, such as cash, accounts re...
Q: 3. How large is the gap between Beta(Asset) and Beta(Leverage)? What is the impact of their differe...
A: Beta is a metric used by shareholders to correlate the uncertainty of a securities or portfolio to t...
Q: The London Interbank Offered Rate (LIBOR) is published under the auspices of the British Bankers Ass...
A: LIBOR (London Interbank Offered Rate) is a benchmark interest rate. This is the rate at which big ba...
Q: Loan Servicing Companies... Collects monthly payments, remits to investor O Purchase loans on the se...
A: Loan Servicing:- Loan servicers are the companies whoes main work is to manage loans, gathering mo...
Q: Suppose an individual makes an initial investment of $1,600 in an account that earns 8.4%, compounde...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: To find NPV, it requires
A: NPV or net present value technique is used to determine the present value of all future cash flows. ...
Q: The equivalent present worth of the project is:
A: answer 1 + nominal rate = (1 + real rate) * (1 + inflation rate) 1 + 15.42% = (1 + real rate) * ( 1 ...
Q: Translate into symbolic proof and provide the reason for each step: If interest rates fall, then th...
A: An investment is a purchase made with the intention of earning money or increasing in value. The ter...
Q: A company plans to add an additional production line at an initial cost of $ 1,250,000 that will giv...
A: Initial Investment $ 12,50,000.00 Gross Savings $ 10,00,000.00 Annual operating cost $ 2,50...
Q: Consider the one-period binomial model with a single risky asset with current price 33. Its price at...
A: Current price (S) = 33 Up price after 1 period (Su) = 35 Down price after 1 period (Sd) = 33 r = 1.5...
Q: Using the Human Life Value Method, how much life insurance does Carl need? Family Share of Earnings ...
A: Human life value method-This is an universal accepted approach to establish the economic value of a ...
Q: a couple has 25,000 in their retirement savings today. How many years do they have to save at 6%, pu...
A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at tim...
Q: A project requires an immediate investment of $14,000 for the purchase and installation of equipment...
A: Given Information :Cost of project = $14,000 After tax cashflow = $5,000 Discount rate = 10%Number o...
Q: Using a bpmn modelling tool, model the control flow of a business process for modelling credit risk?...
A: The Business Process Modeling Notation (BPMN) is an open standard notation for graphical flowcharts ...
Q: View Policies Current Attempt in Progress Kimberly and Matthew want to begin saving for their baby's...
A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the cas...
Q: How many percent was the increase in salaries and expense in year 2020
A: Note : Only first question is answerable because only income statement is provided. Percent increa...
Q: The zero growth model of stock valuation;
A: The zero growth model is a type of dividend discount model.
Q: A friend asks to borrow $47 from you and in return will pay you $50 in one year. If your bank is off...
A: The present value of money is the discounted value of future cash flows. The future value is the val...
Q: Kayla is considering an investment in either a bond or a financial instrument that has a return of 0...
A: Kayla has an option to either invest in bond or financial instruments that is providing a 0.5% retur...
Q: Suppose the interest rate is3.6%. a. Having $650 today is equivalent to having what amount in one ye...
A: Given: Present value = $650 Periodic interest rate = 3.6% per period (annum) n= number of periods =...
Q: manufactured. material, labor and equipment needed to produce one unit of each commodity is shown be...
A: A manufacturer is producing a commodity X and Y with a profit per unit 120 and 100 respectively. cos...
Step by step
Solved in 2 steps
- hank deposits $100,000 into a retirement fund that earns 2.5% annual interest. When will his initial investment have doubled in valueAt age 60, a man established a trust fund of R20 000 which will pay his family a regular amount at the end of each month for 12 years after his death. If he dies at age 65, what monthly sum will the family receive if the fund earns 3% p.a. compounded monthly and if the first payment will be made 1 month after his death?Carl is the beneficiary of a $24,000 trust fund set up for him by his grandparents. Under the terms of the trust, he is to receive equal installmentsfrom this fund at the end of each year over a 5 year period. If the fund earns interest at the rate of 8%/year compounded annually, what amount will he receive each year?Assume that the balance in the fund is zero after the last installment is recieved ( round your answer to the nearest cent)
- Janet Lopez wishes to establish a trust fund from which her son can withdraw $15,000 every six months for 21 years, when he reaches 25 years old. At the end of which time, he will receive the remaining money in the trust, which she would like to be $100,000. The trust will be invested at 7% per annum compounded semi-annually. How large should the trust be?Ginger Rogers deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?6. By the conditions of a will, the sum of P25,000 is left to a girl to be held in trust by her guardian until it amounts to P45,000. When will the girl receive the money if the fund is invested at 8% compounded quarterly? Ans, 7.42 years 7. At a certain interest rate compounded semiannually, P5,000 will amount to P20.000 after 10 years. What is the amount at the end of 15 years? Ans. P40.029.72
- Gustav desires to deposit with a Trust Company a sum just sufficient to provide his family with an annuity of $600 per month for twenty-four years. How much he deposit if the Trust Company agrees to accumulate interest at the rate of 6% payable monthly? show solutionA young man is the beneficiary of a trust fund established for him 21 years ago at his birth. If the original amount placed in trust was $50,000, how much will he receive if the money has earned interest at the rate of 8%/year compounded annually? Compounded quarterly? Compounded monthly?