Use the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4%. How much should you deposit monthly to accumulate $81,000 in 17 years? You should invest $ each month?
Q: Question 8 How much is the proceeds if Marl Php22,735 at 2.85% for 2 years and 5 m Php21,169.13
A: Simple interest is simple and there is no compounding of that means there is no interest on interest…
Q: Suppose that a default-risk-free zero-coupon bond with a face value of $100 and 5 years to maturity…
A: Information related to the returns and yields of a default free and a prone to default bond are…
Q: arge, well-known public companies can reduce the time required to register and issue securities by…
A: When a company offers its shares for sale to the public it has to register and then issue securities…
Q: How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to…
A: Part 2: Interest Rate = 12% Time period = 8 years Amount required = P1,200,000
Q: Question 3 Mr. Lutombi, aged 55 years old, is the current Roads Authority (RA) CEO. He is…
A: The probability of recession is calculated by subtracting the sum of probabilities of boom and…
Q: Clayton Moore's Money Fund. Clayton Moore is the manager of an international money market fund…
A: We have a series of cross rates. We need to convert the amount invested in one currency, into…
Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your…
A: Principal (P) = $15,900 Rate (r) = 0.02 Time (t) = 11 Years Amount (FV) = ? Interest = ? We will…
Q: Which factor(s) lead to the difference of the interest between T-bill and a short-term corporate…
A: T Bill is a short term government debt obligation backed by the Treasury Department with a maturity…
Q: You own 300 shares of Finance Inc’s preferred stock which currently sells for $30.00 per share and…
A: The preferred stock is a hybrid instrument with the characteristics of both bonds and shares. It…
Q: Ito learned something very valuable as a teenager from his dad. He was told to invest $1,000 at 12%…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: Your company has a pre-tax cost of debt of 6%. You anticipate the corporate tax rate will go from…
A: A company pays interest on its debt instruments. This interest is tax deductible. Hence in finance…
Q: All of the following may serve to reduce the coupon rate that would otherwise be required on a bond…
A: A company that deals with financial and monetary transactions such deposits, loans, investments, and…
Q: Solve the following: 2. In purchasing of house, a man makes P720,000 down payment and agrees to pay…
A: Present value of future amount With periodic rate (r), period (n) and future value (FV), the present…
Q: An engineer loans an amount of P500,000 at a local commercial bank at 4% compounded quarterly. How…
A: Monthly Installment - It includes a portion of principle payment along with Interest. Monthly…
Q: Please include the excel formula Yan Yan Corp. has a $2,000 par value bond outstanding with a…
A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…
Q: Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for…
A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv],…
Q: Suppose i have beautiful coffee tables i am building and the materials cost for each table is…
A: Cost of goods sold refers to the direct costs of producing a product. For example cost of raw…
Q: 1. Your company plans to purchase a new track hoe and has narrowed the selection to two pieces of…
A: Quantum and timing of cash flows emanating from two different equipment have been provided. We have…
Q: Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $5 per…
A: Just paid dividend = $5 Year 1 Dividend = $9 (i.e. $5 + $4) Year 2 Dividend = $13 (i.e. $9 + $4)…
Q: ABC Corporation plans to issue a 9%, 10-year, P5,000,000 face value bonds. It will incur P500,000 as…
A: Yield to maturity is rate of return realized on the bond when bond is held till the maturity period…
Q: Question 6 If Php10,568 is the proceeds obtained after Php13,500 is discounted for 10 months, what…
A: Solution:- Discount rate means the annual percentage rate which is used for providing a discount. We…
Q: Complete the following table for the simple discount notes. Use the ordinary interest method. Note:…
A: Amount due at maturity = $4,400 Discount rate = 0.0625 or 6.25% Time = 170 days Bank discount = ?…
Q: Fegley, Incorporated, has an issue of preferred stock outstanding that pays a $6.55 dividend every…
A: Annual dividend = $6.55 Price = $91 Required return = ?
Q: Using image: a-1. What is the payback period for each project a-2. If you apply the payback…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: evaluating two mutually exclusive projects—Project A and Project B. The initial investment for each…
A: NPV is the difference between Present Value of cash Inflows and Initial Investment. A project with…
Q: rokerage Satisfaction with Trade Price Satisfaction with Speed of Execution Overall Satisfaction…
A: We need to run a multi variate regression to establish a linear relationship between one dependent…
Q: To establish a revenue stream for your retirement, you deposit $89000 in an account with a nominal…
A: Information Provided: Initial Deposit = $89,000 Monthly payments = $311.50 Interest rate = 4.20%…
Q: 7. Future value of annuities There are two categories of cash flows: single cash flows, referred to…
A:
Q: On January 1, Kanbe, Inc. issued a 10-year semiannual bond with a face value of $1,225,000 that pays…
A: Bond price is the sum of interest payments and maturity value discounted at yield to maturity Bond…
Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…
A: Given: Particulars Pan Elixir Rebound Cheers Think local Last year dividend $2.50 $0.50 $1.00…
Q: QUESTION Briefly differentiate between money market and capital market in relation to: i. risk…
A: The overall financial market can be divided into money market and capital market. Both these…
Q: a. Use the appropriate formula to determine the periodic deposit. b. How much of the financial goal…
A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…
Q: Susan bought a 18-year bond when it was issued by Octodan Corporation 2 years ago (NOTE: the bond…
A: The bonds are the units of the debt instrument issued by either the corporation or government, the…
Q: c) Find the present value of each of the following: aa. P28,300, 8% every 6 months for 5 years bb.…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: Can you answer b please
A: Solving b) Data given: Purchased shares on margin at $5 per share Limit sell order at $7 Stop…
Q: You deposit $1,000 at the end of the year (k = 0) into an account that pays interest at a rate of 6%…
A: Compound interest also referred to as interest on interest, reinvests the interest earned in a…
Q: Please show how IRR was being calculated. Excel is not helping because doesn't show how the IRR is…
A: IRR of a project is the discount rate which makes net present value of the project equals to zero.…
Q: Find the discount interest rate charged if Php42,000 is the present value of Php48,000 due in 20…
A: Future Value = Present Value * (1+r)n Where r = periodic Interest rate N = time period = 20 months…
Q: Treasury securities that mature in 6 years currently have an interest rate of 7.75 percent.…
A: Data given: Nominal interest rate = 7.75% Maturity period (t)=6 years Expected Inflation= 5 % in…
Q: A project has a cost of $6000. The project will have a payout of X at the end of the first year.…
A: Net present value is difference between the present value of cash inflows and present value of cash…
Q: Your grandmother loves you and wants you to get a graduate degree. She promises to pay you $1,225…
A: Since payment is start at the beginning of the year, we need to use future value of annuity due…
Q: A Treasury bill has a bid yield of 2.79 and an ask yield of 2.77. The bill matures in 175 days.…
A: Here, Bid yield = 2.79% Ask yield = 2.77% Maturity period = 175 days Face value = $1,000 To Find:…
Q: 3 years. The semi-annual payment is Php67,173.49. From the given table below, what is the…
A: Information Provided: Semi-Annual payment = 67,173.49 Loan amount = 370,000 Annual rate = 10%…
Q: why do Financial institutions need to be regulated ?
A: Financial institutions are backbone of the economy and economic growth depend on the rules and…
Q: 1. What is the profit for the month when the income is $14,000 and the expenses are $12,500?
A: Profit is the amount remaining from revenue/income after deducting expenses. This is the financial…
Q: whenever i divide 1.3 by 8.2 I get 15.85 but on the answer sheet its saying the answer should be…
A: =Wp×kp =Weight of preference share x Cost of preference share
Q: Discount rate Year Costs Benefits Cashflow Discount factor Present Net Value (NPV) Discounted costs…
A: Discount Rate 8% Year 0 1 2 Cost 140,000.00…
Q: Apple’s share is $150 and Bella, Shin’s puppy, hold a total of 140 shares. If the initial margin is…
A: Initial margin is the amount of equity required to put by the investor when using the margin…
Q: For the following set of cash flows, Year 0 1 123 Cash Flow -$ 7,300 3,400 3,900 3,900 a What is the…
A: NPV refers to net present value. It is the sum of present values of all future cash flows.
Q: Find the savings plan balance after 9 months with an APR of 4% and monthly payments of $150. The…
A: Information Provided: APR = 4% Monthly payment = $150 Period = 9 months
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- If you are saving the same amount each month in order to buy a new sports car when the new models are released, which of the following will help you determine the savings needed? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityUse the savings plan formula to answer the following question. Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 4%. How much should you deposit monthly to accumulate $87,000 in 15 years? You should invest $ each month. (Do not round until the final answer. Then round to two decimal places as needed.)Your goal is to create a college fund for your child. Suppose you find a fund that offers an APR of 5%. How much should you deposit monthly to accumulate $85,000 in 15 years?
- You have recently adopted a child and are planning to save for her college education. You want to have $50,000 saved by the time she starts college in 18 years. If your savings account offers an annual interest rate of 3%, how much should you deposit each year in order to reach your goal?You are planning for your child's future and would like to set up a savings account for their college tuition. You suspect that you don't want to make a lump sum, so you decide to make equal monthly deposits. After calculating, you plan to have $100,000 in the account in 18 years. You found an account that gives 2% APR compounded monthly. Find the amount of your monthly deposits needed to obtain your projected future value.(Use Calculator or Formula Approach) You want to begin saving for your daughters college education and you estimate that she will need $150,000 in 17 years. If you feel confident that you can earn 8% per year, how much do you need to invest today?
- You plan to send your first born child to DePaul for a 4-year degree with 4 annual payments. Your first payment will start in 25 years in the amount of $ 58,982.71 and grow by 9% per year. Assuming a discount rate of 6%. You start saving in one year from now a fixed amount for 20 total deposits. What is the amount of that annual savings deposit in order to save enough to fund the education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $13,000.Use the savings plan formula to answer the following question:. Suppose you find a fund that offers an APR of 5%. How much should you deposit monthly to accumulate $82000 in 17 years?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 solution
- You would like to have $200,000 in a college fund in 15 years. How much do you need today if you expect to earn 12% while you are investing to pay for your child’s collegePlease provide working to the solution for the question below: Suppose you are 40 years old and plan to retire in exactly 20 years. 21 years from now you will need to withdraw RM5,000 per year from a retirement fund to supplement your social security payments. You expect to live to the age of 85. How much money should you place in the retirement fund each year for the next 20 years to reach your retirement goal if you can earn 12% interest per year from the fund?You plan to send your first born child to College for a 4-year degree with 4 annual payments. Your first payment will start in 18 years in the amount of $50,000 and grow by 15% per year. Assuming a discount rate of 6%, how much do you need to set aside today to fund your child's education? Use the $ symbol and round to the nearest thousand dollars. A correct answer would look like $34,000.