The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded quarteriy, so that each emplayee will receive a $1,200 bonus? A $3,945 B $3,844 s2,075 D $4,734

The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded quarteriy, so that each emplayee will receive a $1,200 bonus? A $3,945 B $3,844 s2,075 D $4,734

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: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Save 20% of Yearly Income Income in first year = 1,000,000 Savings in first year = 20% * 1,000,000 =…

Q: elix Jones, a recent engineering graduate, expects a arting salary of $35,000 per year. His future…

A: Salary grow by fixed percentage that salary is geometric sequence of growing annuity and the present…

Q: A young engineer’s starting salary is $65,000. The engineer expects annual raises of 2.5%. The…

A: The growth in annual salary of $65,000 is 2.50% and because savings are made as proportion of…

Q: Under a new company employees savings plan, an employee will pay P 250 at the beginning of each…

A: Future Value The future value is the amount that will be received at the end of a certain period.…

Q: Felix Jones, a recent engineering graduate, expects a starting salary of $35,000 per year. His…

A: Solution : Due to averaged Increment in salary was 5% for last several years & interest rate was…

Q: An engineer in an industry has received a year- end bonus of $10,000 which will be invested…

A: FV = PV * (1 + r)n FV = Future value PV = present value = $10,000 r = rate of interest = 8% n =…

Q: A manufacturing firm wishes to give each 80 employees a holiday bonus. How much(P) is needed to…

A: Individuals or companies invest regular amounts in financial instruments to earn interest on the…

Q: Mr. Samal deposits 5,000 php at the end of each month at a product with an interest rate of 8%…

A: In the given question, compounding is done on monthly basis. Therefore, effective monthly rate will…

Q: An engineer has received $10 000 from his employer for a patent disclosure. He has decided to invest…

A: Final value is computed in nominal terms as the compounded value of the initial investment. The…

Q: Assume that you will have a 10-year, $14,000 loan to repay when you graduate from college next…

A: Given, Loan amount = $14,000 Annual payment = $2,377 Interest expense = 11%

Q: Junior’s average monthly expense is currently Ghc750, but Junior expects his monthly expense to grow…

A: Junior’s monthly expenditure can be calculated by finding the annual expenditure after 35 years…

Q: An engineer invests $5000 at the end of every year for a 40-year career. If the engineer wants $1…

A: Future value of annuity = P * [ (1+r)^n - 1 ] /r where, r =rate of interest per period n = no. of…

Q: 1. Compute the difference in the future amount of P500 compounded annually at nominal rate of 5% and…

A: Hi, Thanks for the question. Since you asked multiple questions, we will answer the first question…

Q: A new engineer wants to save up P1,000,000. He will contribute P5,000 annually to an investment…

A: Introduction:- The devotion of an asset to achieve a gain in value through time is referred to as an…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: What is the present value of the first alternative? What is the present value of the second…

A: Net present value: The net present value of money is the method that compares the present value of…

Q: An investment firm has a job opening with a salary of N45,000 for the first year. Suppose that…

Q: One building was priced at $ 125,000 . If you advance $ 25,000 and every month after that If $ 1,000…

Q: Engineering graduates earn $880,000 more than the average Liberal Arts BA holder in a career.…

A: We can use the concept of time value of money here. The concept of time value of money states that…

Q: A 45-year-old engineer earning $110,000 per year wants to retire at age 70 with $1.75 million. The…

A: A loan amortization schedule is a table that helps in finding out how much of the periodic loan…

Q: 6. A company wishes to spend P40,000 for a new office copier and decides to set up a sinking fund to…

A: Money Required (Future Value) = 40,000 Present Value (value at start) = 0 N = 3 years Quarterly…

Q: Hello can you please walk me through how to do this the annual income is 113,300 It is wise to set…

A: Future value of the savings when the annual interest rate is 5% can be calculated in the excel as…

Q: Suppose you earned a $595,000 bonus this year and invested it at 8.25% per year. How much could you…

A: Here, Bonus Amount is $595,000 Interest Rate is 8.25% per year Time Period is 20 years

Q: Varian wants to have $500,000 in an investment account six years from now. The account will pay 6.96…

A: The periodic payments are made at regular intervals and are known as annuities. The payment interval…

Q: Rendon Labrador, a focus-oriented person, is creating a bank retirement account. By the time he…

A: Given, interest rate is 8% p.a. compounded quarterly. Equivalent semi annual rate= (1+8%/4)^2-1=…

Q: You are an employee that earns 20,000 per month. Assuming that you want to invest half of the amount…

A: The given problem can be solved using FV function in excel. FV function computes accumulated amount…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: The average age of engineering students at graduation is a little over 23 years. This means that the…

A: A concept through which it is studied that the current worth of money is higher than its future…

Q: A 25-year old engineer wants to spend $40,000 per year traveling as long as possible before…

A: FORMULA FOR FUTURE VALUE OF ANNUITY (FVA) FVA=A×1+rn-1r where, A= annuity r=rate of interest…

Q: A young engineer’s starting salary is $75,000. The engineer expects annual raises of 2%. The…

A: Salary = $75,000 Annual raise = 2% = growth rate =G Deposit = 15% of salary Average interest = 6% =…

Q: A new engineering graduate plans to start a consulting firm by borrowing 100,000 TL at 16% ber year…

A: Given; Loan Amount is $100,000 Time Period is 5 years or 60 months Interest Rate is 16% per year

Q: How long will it take an RESP to grow to $200,000, if the plan owner contributes $250 at the end of…

Q: Sally Hamilton has performed well as the chief financial officer of the Maxtech Computer Company and…

A: Present value:

Q: Assume that you will have a 10-year, $10,000 loan to repay to your parents when you graduatefrom…

A: The loan is to be paid in 10 annual installments of $1,490. It includes both the payment of interest…

Q: Assume that you are 30 years old today (t=0), and that you plan to retire at age of 65 (t=35). Your…

A: An annuity is a series of payments with a fixed number of instalments of the same quantity and made…

Q: 1) Mr. Ang's money became Php165,000 @ the end of 10 months. If the bank pays 12% annually, how much…

A: Future value (FV) = Php 165,000 Period (n)= 10 Months = 10/12 Years = 0.833333333333333 Years…

Q: As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in…

A: Savings = 20% of yearly Income N = 6 First year income = 1,000,000 Savings = 20%*1,000,000 Savings =…

Q: Another client at ZBX Fin Planning currently has $95,000 in their retirement account that is…

A: Current Amount in account is $95,000 Deposits per month is $950 Interest rate is 10.56% APR…

Q: small business owner contributes $2,000 at the end of each quarter to a retirement account that…

A: Information Provided: Amount to be contributed = $2000 Interest = 10% compounded quarterly

Q: A new employee plans to receive 760,000 TL individual retirement bonus when he retires. According to…

A: In case of ordinary annuity, the amount of periodic payment is being considered at the end of the…

Q: Hello can you please walk me through how to do this the annual income is 20,000 It is wise to set…

A: Given that the annual income is $20000401 k investment (or savings) is $20000 multiplied by 7.5%…

Q: A mechanical contractor is trying to calculate the present worth of personnel salaries over the next…

A: given that: interest rate= 12%= 0.12 n (no. of period)= 5 years 1st year salaries=$150000 (S) since…

Q: A person wishes that his son becomes an Engineering graduate. To achieve this he starts saving every…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: If the interest rate is 9 percent compounded monthly, what is the value today of each option?

A: Present Value: It represents the present worth of the future sum of the amount or future annuity…

Q: Suppose you invest $25 per week into an account that earns 2% compounded weekly. You make the…

Q: You are offered a job that pays $37,000 during the first year with an annual increase of 9% per year…

A: Solution:- When an amount increases by same rate of growth, the amount at nth year can be computed…

Q: A small business owner contributes $3,000 at the end of each quarter to a retirement account that…

A: Given information: Quarterly payment $3,000 Interest rate 10% compounded quarterly Future value is…

Q: An engineer wants to have P100,000 at the end of three years. How much would the engineer have to…

A: Present value is calculated by discounting the future value with the rate of interest. Present…

Q: A downtown bank promises its potential employees a $9000 sign-on bonus, an additional bonus of $…

A: Rate of discount quarterly 8℅/ 4 = 2℅ Period for two years 2years*4 period= 8 period Here we took 2…

Question

The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest
monthly for a year at 12% nominal interest rate, compounded quarteriy, so that each employee will receive a $1,200 bonus?
A
$3,945
В
$3,844
$2,075
D) $4,734

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

Given:

VIEW

Calculation of Monthly Investment:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

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

The president of a growing firm wishes to give each of 15 employees a holiday bonus. How much is needed to invest monthly for a year at 4% nominal interest rate, compounded monthly, so that each employee will receive P1,000 bonus?
The president of a growing engineering firm wishes to give each of 50 employees a holiday bonus. How much is needed to invest monthly for a year at 12% nominal interest rate, compounded quarterly, so that each employee will receive a $1,200 bonus?
A young engineer’s starting salary is $65,000. The engineer expects annual raises of 2.5%. The engineer will deposit a constant percentage of annual salary at the end of each year in a savings account that earns 5%. What percentage must be saved so that there will be $1 million in savings for retirement after 35 years?
A young engineer’s starting salary is $75,000. The engineer expects annual raises of 2%. The engineer will deposit 15% of annual salary at the end of each year in an investment account that averages 6% interest. How much will the engineer have saved for retirement after 40 years?
Gilles Lebouder has just been offered a job paying $50,000 at the end of his first year. He expects his annual salary will increase by 5% a year until he retires in 40 years. Given an interest rate of 8%, what is the present value of his lifetime salary? Select one. • a. $ 975, 319 b. $1, 126, 571 0 c. $1,371, 643 d. $1,392, 072 0 e. $1, 666, 667 ●
A young engineer’s starting salary is $52,000. The engineer expects annual raises of 3%. The engineer will deposit 10% of the annual salary at the end of each year in a savings account that earns 4%. How much will the engineer have saved for starting a business after 15 years? We suggest that the spreadsheet include at least columns for the year, the year’s salary, the year’s deposit, and the year’s cumulative savings.
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $77,000 per year for the next two years, or you can have $66,000 per year for the next two years, along with a $22,000 signing bonus today. The bonus is paid immediately and the salary is paid in equal amounts at the end of each month. If the interest rate is 8 percent compounded monthly, what is the value today of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Option 1 Option 2
Sally Hamilton has performed well as the chief financial officer of the Maxtech Computer Company and has earned a bonus. She has a choice among the following three bonus plans: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) A $50,000 cash bonus paid now. A $10,000 annual cash bonus to be paid each year over the next six years, with the first $10,000 paid now. A three-year $22,000 annual cash bonus with the first payment due three years from now. Required:Evaluate the three alternative bonus plans. Sally can earn a 6% annual return on her investments. (Round your answers to nearest whole dollar amount.) What is the present value of the first alternative? What is the present value of the second alternative? What is the present value of the third alternative?
As an engineer, you plan to put aside 20% of your yearly income. You expect to make Php1 million in the first year, and then you expect your income to increase by 10,000 each year for the next 6 years. At the interest rate 10% per year, what is the accumulated amount after 6 years? A.Php 1,714,683 B.Php 967,893 C.Php 524,456 D.Php 807,723
Q4. You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $95,000 per year for the next two years, or you can have $70,000 per year for the next two years, along with a $45,000 signing bonus today. The bonus is paid immediately, and the salary is paid at the end of each year. If the interest rate is 10 percent compounded monthly, which do you prefer?
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $80,000 per year for the next two years, or you can have $69,000 per year for the next two years, along with a $25,000 signing bonus today. The bonus is paid immediately and the salary is paid in equal amounts at the end of each month. If the interest rate is 8 percent compounded monthly, what is the value today of each option? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $66,000 per year for the next two years, or you can have $55,000 per year for the next two years, along with a $11,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 9 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) PV Option 1 $______ Option 2 $_______

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