7,8,9 6. You invest P 5 000 today at an interest rate of 10% for four years,how much wouldbe the future value of the investment?а. Р3415b. Р7 000с. Р6 500d. P 7 3207. You are an incoming college freshman taking-up a four-year course.Suppose thatyou want to purchase a car immediately after graduating which willcost you P 750000. How much should you invest at the end of every year in aninvestment fund thatearns 9% annually to have enough to buy the car upon graduation?а. Р 164 ОООb. P 531 300c. P 607 445d. P 132 8288. If you invest a lump-sum amount of P 25 000 at an interest rate of12%, compoundedmonthly, how much would be your investment after 3 years?а. Р 34 ОООb. P 35 123c. P 39 338 d. none of the above9. An equipment with a cost of P 100 000 is expected to generatereturns of P 90000; P 60 O00 and P 50 000 for the first, second and third year,respectively. Using adiscount rate of 12%, what is the NPV of the project?a. P 60 121b. P 79 341c. P 83 431d. P 63 77810. What is the present value of a 6% investment that would pay P 30000 annuallyperpetually?а. Р 500 000b. Р 450 000с. Р ЗОО ОО0d. none of the above

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Foundations of Business - Standalone book (MindTap Course List)

4th Edition

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter15: Using Management And Accounting Information

Section: Chapter Questions

Problem 4DQ

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F1. Subject :- finance a business worth $125,000 is expected to grow at 3% per year compounded annually for the next 2 years. Find the expected future value.
Bayan wants to buy a house in six years. She hopes to be able to put down OMR 25000 at that time. If the bank CD she wants to invest in will pay 7.5 percent annually, how much will she have to invest today Select one: O a. 17107.50 OMR O b. 16199.03 OMR O c. None of these O d. 15680.04 OMR
HC6Q 2) Mr. Hamid bought a new home in Wave Muscat for OMR 65000. If he puts OMR 5000 as down payment. Bank Dhofar is ready to finance at rate of 8.00% for 20 years. Amortization Table (Partial- Mortgage principal and interest per 1000) Terms in years 5.50% 10 12 15 17 20 6.50% 11.36 10.02 8.72 7.00% 11.62 10.29 8.99 8.40 76 7.50% 11.88 8.00% 8.50% 12.40 6.00% 9.00% 10.86 9.51 8.18 11.11 9.76 8.44 12. 14 10.83 9.56 8.99 8.37 12.67 11.39 10.15 9.59 9.00 10.56 9.28 11.11 9.85 7.56 6.88 7.84 7.17 8.12 7.46 8.69 8.06 9.29 8.68 i) The mortgage is OMR. I) The monthly payment for Mr. Hamid is OMR . II) Total cost of interest for Mr. Hamid is OMR. iv) Balance of payment at the end of 1st month payment is OMR.
Q3. You borrowed $150,000 with a 30-years payback term and a variable APR that starts at 9% and can be changed every five years a. What is the initial monthly payment b. If, at the end of the five years, the lender's interest rate changes to 9.75% APR, what will the new monthly payment be?
A principal of 5000 OMR is invested for one year. Find the interest rate required to produce a future value of 5275 OMR if the interest is simple? Select one: а. 0.055% b. 0.0475% С. 5.5% d. 55.0% е. None of the above
What is the APR on a $700,000 fixed rate mortgage loan fully amortizing over 30 years if the stated annual interest rate is 5.5% and the lender charges 1.5% as an origination fee, $750 for an appraisal and $18 for a credit report? a.5.65% b.5.72% c.5.36% d. 5.5%
If the contract annual interest rate on a $2,880,000 fixed rate loan that is fully amortizing over 20 years with equal monthly payments is 6.25%, what is the effective yield to the lender if the lender charges 1.5% as an origination fee, $288 for a credit report and $3,080 for an appraisal fee and the loan is repaid after ten years? a. 6.25% b. 6.51% c. 6.46% d. 6.49%
27.Options buyers who are delta-hedging (riskless hedge) would do which of the following in the underlying (asset) market. A. buy when the underlying market is falling and sell when it is rising. B. sell when the underlying market is falling and buy when it is rising. C. buy whether the underlying market is falling or rising. D. sell whether the underlying market is falling or rising.
Use the following information for the next four questions: On Jan. 1, 20x1, Red Co. acquires P500,000 face amount, 10%, bonds of Ball Co. for P487,656. Red Co. incurred transaction costs equal to 5% of the face amount of the bonds. The bonds mature on Dec. 31, 20x3 and pay annual interest every Dec. 31. The bonds were quoted at 102 and 104 on Dec. 31, 20x1 and Dec. 31, 20x2. respectively.
Q1 Discuss the following casesa) On 25th August 2017, a cheque dated 01.09.2016 for Rs 5000 is presented and paid,reducing the balance in the account to Rs2000/. Two days later, a cheque dated 23.08.2016for Rs6000/ is presented but returned for the reason “Funds Insufficient” Discuss the legalposition of the banker in this case. 5b) By means of fall preference Rohit has obtain from Mohit a cheque crossed “notnegotiable” he took that cheque to a bank (other than drawee bank) which paid it. Mohit suesthe bank for conversion.1. Has Rohit committed any offence or irregularity? Under the negotiable instrument act.2. How will you decide the case?
5. A telephone company purchased a microwave equipment for P6 Million with a salvage value of P600,000.00 over a period of 5 years and pay lump sum of P400,000.00 for maintenance cost. Minimum attractive rate of return is 16% annually. Compute the annual cost of investment of purchasing the microwave equipment. A. P1,592,362.54 B. P1,695,452.87 C. P1,803,374.41 D. P1,346,121.25
You deposited $540 in a saving account paying 2.8% simple interest. How much intrest will you earn in 7 years? Hou much is the account at the end of 7 years?

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