Kyoko has $10,000 that she wants to invest. Her bank has several investment accounts to choose from, all compounding daily. Her goal is to have $15,000 by the time she finishes graduate school in 6 years. To the nearest hundredth of a percent, what should her minimum annual interest rate be in order to reach her goal? If you use an online financial calculator (look up "compound interest calculator") to answer this, provide a screenshot of three different scenarios that you tried, as well as the correct one.
Q: Three Years Future Value What is the future value of $18,000 deposited for three years earning 7%…
A: The compound interest is the interest calculated on the initial principal which also includes all…
Q: A mortgage of $26, 252.00 is to be repaid by making payments of $ 1368.00 at the end of each year.…
A: The objective of the question is to find out the term of the mortgage in years and months. The…
Q: What is the Net Present Value of the second 50 years of the following hunting lease? Length = 100…
A: Duration: 100 yearsCash flow per year: $1000Interest rate: 7.73%
Q: Question 8 Capital and asset types Tier1 capital Tier 2 capital Corporate debenture Mortgage loan…
A: The objective of the question is to calculate the risk-weighted assets, the Capital Adequacy Ratio…
Q: If you buy a car for $49,000 use it for 9 years and then sell it for $9,000, what is the capital…
A: The idea of the minimum appealing rate of return (MARR) in conjunction with the capital recovery…
Q: Your firm needs a machine which costs $220,000, and requires $37,000 in maintenance
A: MACRS (Modified Accelerated Cost Recovery System) is a system used to calculate tax deduction of…
Q: The University of California has two bonds outstanding. Both issues have the same credit rating, a…
A: Face value of Bonds A and B = $1000Interest rate = 7%Coupon rate = 4%Maturity of bond A = 1…
Q: The Walters accumulated $285,000 during more than 40 years of work. They originally deposited…
A: Annual income refers to an amount that is earned as a return over an investment amount by the…
Q: A firm issues preferred stock that has $70 par value abs pays a 15% annual dividend each year. Firms…
A: Given information:Par value (P) = $70Annual dividend (D) = 15%Market price (after flotation cost)…
Q: What is the IRR of the following set of cash flows? (Do not round intermediate calculations and…
A: IRR is the actual return arising from the cash flows generated by the investment over the period of…
Q: Revenues generated by a new fad product are forecast as follows: Year Revenues 1$ 45,000 2 40,000 3…
A: Capital budgeting can be defined as the procedure for allocating company resources to profitable…
Q: Two Years Future Value What is the future value of $12,000 deposited for two years earning 6%…
A: Present Value = pv = $12,000Time = t = 2 YearsInterest Rate = r = 6%
Q: Brett bought 210 shares of stock for $55.70 per share. He sold them 7 months later for $76.34 per…
A: Capital gain is the profit earned from the sale of a capital asset, such as stocks, real estate, or…
Q: Paulo is making quarterly contributions of of $430 to his savings account which pays interest at the…
A: The time value of money is a concept in finance that takes into account the effect of compounding to…
Q: One can solve for payments (PMT), periods (N), and Interest rates (1) for annuities. The easiest way…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: Laura Estimates the Stock will yield 9.4%. Company had beta of 0.6. Risk free rate is 3.3%. Expected…
A: To estimate the alpha, we can use the formula:Expected Return = Risk-Free Rate + Beta * (Expected…
Q: (Present value of a complex stream) Don Draper has signed a contract that will pay him $60,000 at…
A: Annual payments = $60,000Additional payment = $140,000Discount rate = 7%Number of years = 7To find:…
Q: Identify the type of business strategy of The Boeing Company, mention below how its business…
A: The objective of the question is to identify the business strategy of The Boeing Company, how it has…
Q: Jake won $350,000 in the lottery! He will receive $35,000 each year at the beginning of each of the…
A: The objective of this question is to calculate the present value of the lottery winnings. The…
Q: What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding…
A: YearCash flow0-145,000.00135,000.00242,000.00343,000.00430,000.00541,000.00642,000.00
Q: What is the coupon rate for the bond? Assume semi-annual payments. Answer as a percent! Bond Coupon…
A: Coupon rate refers to the percentage at which intermediate earnings from the bond at regular…
Q: The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year…
A: a.Standard deviation = 35.71% b.Average real return = -3.28%Explanation:Step 1:Calculating the…
Q: The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs…
A: Cash flow refer to the metric that shows the company's ability to generate cash-based income through…
Q: DRTF Inc. will acquire a building at a cost of $ 400,000 in addition to paying capitalizable costs…
A: Net Present Value (NPV) is a financial metric used to assess the profitability of an investment by…
Q: A company reported net income of S202,500 during 2019. The company reported depreciation expense of…
A: Net income = $202,500Depreciation expense = $47,500Patent amortization = $16,250Loss on sale of…
Q: You and spouse are filing a joint return. Your current deductions have reduced your taxable income…
A: The question is based on the progressive income tax system in the United States, which levies taxes…
Q: Mr. Clark is considering another bond, Bond D. It has an 8% semiannual coupon and a $1,000 face…
A: Compound = Semiannually = 2Coupon Rate = c = 8 / 2 = 4%Face Value = fv = $1000Coupon Payment = p =…
Q: endy promts from What is the net present value of the project? Instructions: Enter your response…
A: The net present value combines the present value of projected cash inflow and outflows to determine…
Q: Based on the following data, calculate the items requested: Rental Costs Annual rent Insurance…
A: Capital budgeting involves evaluation of various options available for investments or projects. It…
Q: Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.…
A: Net Present Value (NPV)NPV is a widely used tool in capital budgeting and investment analysis for…
Q: Assume a firm takes on a project that requires an initial investment in year 0 of $42,000. assume…
A: $700Explanation:EVA = NOPAT - (Initial investment * WACC)Given:Initial investment (Year 0):…
Q: You make annuity payments of $25,000 per year for the next 11 years. If you earn 6.67% return, how…
A: Annual Payment (P) = $25,000Number of years (n) = 11Rate of return (r) = 6.67% or 0.0667We need to…
Q: eBook Print References Problem 6-30 Calculating Project NPV Calligraphy Pens is deciding when to…
A: Old machine:Current salvage value$2,150,000Book value$1,350,000Maintenance cost of the old…
Q: 73. A 30-year, variable-rate mortgage offers a first-year teaser rate of 2%. During the second year,…
A: The objective of the question is to calculate the monthly mortgage payments for the first three…
Q: Blossom Hospitalinstalls a new parking lot. The paving cost $29200 and the lights to illuminate the…
A: A fixed asset is a type of long-term asset that is owned by a firm and used for its operations. For…
Q: A 5-year bond has a face value of £100. The bond pays coupons semi-annually at a rate of 6%. The…
A: Time to maturity = 5 yearsFace value = £100Coupon rate = 6%Yield = 8%To find: Price of the bond.
Q: There was a bit of concern about one of RBL's newer entities - RBL Paving Company. Management wants…
A: Ratios analysis can be referred as the measure of company's financial health and its performance in…
Q: 20 A company is launching a new sales initiative and expects sales of $824,241 during the first…
A: The objective of the question is to calculate the incremental investment in operating net working…
Q: Jake won $350,000 in the lottery! He will receive $35,000 each year at the beginning of each of the…
A: The objective of this question is to calculate the present value of Jake's lottery winnings. The…
Q: Your company currently has $1,000 par, 5% coupon bonds with 10 years to maturity and a price of…
A: Bonds are debt instruments issued by companies. The issuing company pays periodic coupons or…
Q: Steven is beginning a new job but has not yet been paid. He needs $700 to pay his rent this month.…
A: Effective Annual Interest Rate (EAR), also known as the annual equivalent rate (AER) or annual…
Q: Problem 06.027 AW of a Permanent Investment How much must you deposit each year into your retirement…
A: Amount withdrawn per year forever = $85,000Number of years = 30 yearsInterest rate = 10%Number of…
Q: Cad Ltd has the following information relating to chocolates produced. Unit sales price Variable…
A: 1.Contribution per unit = Sales - Variable cost per unit2.Target profit = Total Contribution - Fixed…
Q: Adriana made two trades in one day with an online brokerage house that charges $9 per trade.…
A: We buy and sell stocks in order to gain from the price changes of the stock. The buying and selling…
Q: addresses the question of where money is raised to finance business activities. O Capital budgeting…
A: The objective of the question is to identify the correct method through which businesses raise money…
Q: Exercise 15-5 (Algo) Sales-type lease; lessor; balance sheet and income statement effects [LO15-3]…
A: Leasing is when one party, the lessor, allows another party, the lessee, to utilize an asset by…
Q: I NEED FORMULAS FOR EXCEL PLZ ANSWER ALL PARTS
A: The objective of the question is to prepare an amortization schedule for a five-year loan of $67,500…
Q: 4 5 6 7 8 a 9 Purpose of the homework: 1. Students will learn the composition of Dow Jones…
A: The objective of this question is to understand how the Dow Jones Industrial Average (DJIA) is…
Q: Income statement year 1 year 2 Sales $4,000 $4,800 Operating costs -$3,400 -$4,080…
A: Calculating Free Cash Flow (FCF) for Year 2:Year 1:EBIT = $665Depreciation = -$55Taxes (40%) =…
Q: Assume an investment has cash flows of -$105,000, $140,000, $200,000, and $485,000 for Years 0 to 3,…
A: Net Present Value is the difference of present value of cash inflow less the initial investment. If…
Step by step
Solved in 3 steps
- Delfina has $27,730 in her savings account and wants this to accumulate to $80,000 for a condominium down payment. Suppose she plans to make deposits of $500 at the beginning of every month into this account which earns 3.31% compounded semi- annually. How long will it take to accumulate the $80,000? Choose calculator mode: Select an answer Enter the future value as a positive value in the FV box below. Enter PV and PMT as positive or negative values based on FV being positive. Report N as a whole number. P/Y = C/Y = N = I/Y = PV = $ PMT = $ FV = $ Report your answer in years and months as whole numbers below. Your answer must be consistent with the value of N you entered above whether correct or incorrect. This question will be marked using the value displayed in the N answer box above. If years is an exact integer like "7 years", then enter 7 for years and for months. You must enter a value in each box for full marks. It will take years and months.Carol wants to invest money in an investment account paying 4% interest compounding semi-annually. Carol would like the account to have a balance of $56,000 three years from now. How much must Carol deposit to accomplish her goal? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Multiple Choice $28,000 $49,784 $49,726 $49,280show working using both a financial calculator and spreadsheet. after, show answer rounded off to the nearest dollar. Sam is in discussion with you about saving for his retirement. You are to advise him on how much he should deposit annually to meet his retirement needs. Assume that he will deposit a fixed annual amount for the next 20 years into a retirement savings account, starting one year from now. Sam has a son who will be attending college and plans to make 5 withdrawals (starting one year after making his final deposit into the retirement account) of $35,000 each to pay for his annual tuition for the following 5 years. Commercial Banks will be paying 6 percent on such retirement accounts for the next 25 years. Kindly advise Sam on how much he should place in the account annually to cover his retirement needs.
- Carol wants to invest money in an investment account paying 10% interest compounding semi-annually. Carol would like the account to have a balance of $53,000 three years from now. How much must Carol deposit to accomplish her goal? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1).2. Remi deposits $2,000 into a savings account at her bank. If the interest rate is 3.25 percent, how much money will she have in her account after 5 years? 7. You are Co introductory rate months and the rate be entered into a drawin commercial. You pay $50 a you switch? Use the smart dec mathematically and include an emI need Question 4,5 and 6 Joanna has $1,500 to put into one of two savings accounts. The first pays 5.6% simple interest each year. The second pays 4.8% annual interest compounded monthly. Use a TVM Solver is necessary. Write an equation to model the balance of the first account after any number of years (t). 2. How much money will she have after 15 years in the first account? 3.How many years until Joanna would have $3,500 in the first account? 4. Write an equation to model the balance of the second account after any number of years (t). 5.How much money will she have after 15 years in the second account? 6.How many years until Joanna would have $3,500 in the second account? 7.Which account would you recommend for Joanna? Explain your answer.
- Marsha Stone is thinking about investing $10,000 for a period of 1 year, 1 year from now, in an interest bearing security. Jamila, at the bank, is assisting her in choosing the appropriate investment. She pulls up the current interest rate data on her computer and lets Marsha has a look at it. A review of interest rates reveals as follows: Current 1-year rate = 2% p.a.Current 2-year rate = 4% p.a. Both Jamila and Marsha are confused with the information because though the interest rates for one and 2 year investments are available, the interest rate for a 1-year investment that will commence one year from now, is not there to see. Imagine that you are Jamila’s supervisor. How can you help the two ladies out? How much money will Marsha end up with when her investment matures? Show relevant calculations to support your response.Assume that Pure Expectations theory is valid.4. Suppose you make an annual contribution of BD100 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solutionMaheera can get a certificate of deposit (CD) at his bank that will pay 3.5% annually for 10 years. If he places $2442 in this CD, how much will it be worth when it matures? (a) Use the formula. (b) Use the interest tables and interpolation. (c) Use a calculator or spreadsheet for a 5-button solution.
- 4. Suppose you make an annual contribution of BD300 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solution AGE Beginning Balance Ending Balance Deposit InterestFind an exponential model for the account balance. (Let t be the time in months and B the savings balance in dollars. Round your parameters to three decimal places.) (e) Suppose that you made this investment on the occasion of the birth of your daughter. Your plan is to leave the money in the account until she starts college at age 17. How large a college fund will she have? (Round your answer to the nearest cent.)$ (f) How long does it take your money to double in value? (Round your answer to two decimal places.) monthsHow much longer does it take it to double in value again? (Round your answer to two decimal places.) monthsHolly Krech is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1,900 per month for twenty years. (a) How much money must she deposit if her money earns 7.8% interest compounded monthly? (Round your answer to the nearest cent.)___________ $ (b) Find the total amount that Holly will receive from her payout annuity. Thank you!