A high school student received from his wealthy ant $15,000. He decided to put it in an account which pays 5.5% compounded continuously. If the student will need $25,000, to pay for college when he will finish his high school ; how long will it take to accumulate that much money?
Q: mpute for the NET PRESENT VALUE of the following project. You found that opening your own cake shop ...
A: Net present value is the difference between the current worth of cash inflows and withdrawals over a...
Q: Which of the following is an example of a money market instrument? (Select all that apply) a. 2-year...
A: Money Market instruments:-Money market products are short-term financial instruments with a maturity...
Q: Present value is based on the concept of: a. discounting. b. duration. c. systematic ris...
A: Present value means how much the value of future money worth today. The amount received today will b...
Q: PS #2 Type A: Brite Events has been growing at a rate of 204 per year, and you expect this growth ra...
A: Given: Risk free rate 3% Market risk premium 6% Beta 2
Q: The furniture store offers you no-money-down on a new set of living room furniture. Further, you may...
A:
Q: You have a new job as a Financial Planning assistant. Your client wants to invest money in stocks, b...
A: Here we will have to formulate a linear program (LP) and then solve the problem using the solver fun...
Q: At what rate compounded annually will P50,000 earn F1 O 2.22% O 1.76% O 10.27%
A: The future value of the investment includes the value today plus interest on that also.
Q: Sunrise Furniture Inc. wants to upgrade the existing production process. The cost-cutting project ca...
A: Depreciation is a non-cash expense. Although it is excluded while computing cashflows for capital bu...
Q: Ashely Corporation has 80 million outstanding equity shares and the following projected financial in...
A: We need to find the free cash flows in year 1 to 4 Cost of capital (c) = 13% Number of shares = 80 m...
Q: Ultravision Inc. anticipates sales of $460,000 from January through April. Materials will represent ...
A: Cashflows means movement of cash, it can be positive or negative. Positive cashflows means cash infl...
Q: Ifyouare in Vietnam, please quote direct and indirect rate from Tha i Baht for Cash and both Buying ...
A: The question is based on the concept of foreign exchange quotation. Foreign exchange quotation uses ...
Q: 9. Which of the following sets includes only financial budgets? a. Cash budget and operating budget ...
A: 9) Financial budget manages the source of funds with uses of funds in order to achieve the goals of ...
Q: Briefiy explain (in one or two sentences) what the meaning is of the SFr/AS bid rate that you calcul...
A: Foreign Exchange rates: The value of one currency vis-vis another currency is known as the foreign e...
Q: Moral hazard is mostly a problem in countries with universal insurance programs like the United King...
A: Moral hazard is a an example of risk which arises when one of the parties involved in a contract doe...
Q: A credit union's Rate-Climber GIC pays rates of 21%, 26%, and 3.1% compounded semiannually in succes...
A: Given: Present value = $13,000 Interest rates: Year 1 = 2.1% Year 2 = 2.6% Year 3 = 3.1%
Q: It measures the performance of company managers in term of generating profit from operations.
A: Profit from operations refers to the profit that a business or a company earns by selling its goods ...
Q: Please use the table above to answer the following questions: a. Discuss the trend analysis on how C...
A: a. Asset to equity ratio compared to 2018(0.81), increased in 2019(1.21) and again decreased in 2020...
Q: Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 29.00% Babis...
A:
Q: Financial markets promote economic efficiency by * A.channeling funds from investors to savers. B. c...
A: Answer - The financial system performs the essential economic function of channeling the funds o...
Q: Suppose we are pricing a five-year Libor-based interest rate swap with annual resets (30/360 day cou...
A: The fixed rate of the swap can be calculated by deducting the present value of final year (Z N) and ...
Q: • How an Investment Bank helps • How an Investment Bank helps Emerging trends in financial services ...
A: Investment Bank provides services related to arranging funds or acting as an advisory-based financi...
Q: 7 8 9. 10 EOY 20 21 22 23 24 25 26 27 28 29 30 CF $300 A deposit was made at the EOY 2021, as shown ...
A: Deposit made in year 2021 is $300 Interest rate is 6% To Find: Equal Payment in period EOY26-30
Q: Suppose James will have $25,000.00 for a down payment on a house in 6 years. How much would he have...
A: The question is based on the concept of future value calculation of an investment with a monthly com...
Q: A beginner in business bought a machine to make canned goods for 45,000 dollars. His old machine is ...
A: Original Price of machine = 45,000 Old Machine Selling Price = 10,000 Discount = 7% Purchase Price o...
Q: ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investmen...
A: Since you have posted a question with multiple sub parts, therefore as per the guidelines we will be...
Q: Finding the total interest of a loan is similar to finding the total interest in an annuity's
A: When you take a loan then you have to make payments towards the principal amount as well as towards ...
Q: 1. 1 2 3. 4 7 8. 6. 10 EOY 20 21 22 23 24 25 26 27 28 29 30 CF $100 $100 $100 $100 $100 Five deposit...
A: Cash flow in 2021 is $100 Cash flow in 2022 is $100 Cash flow in 2023 is $100 Cash flow in 2024 is $...
Q: Calculate the degree of financial leverage for a firm with EBIT of $6,000,000, fixed cost of $3,000,...
A: The degree of financial leverage shows the potential impact of change in operating income that is in...
Q: Consider the following schedule: (Same Schedule as problem 8, repeated again here) number of years· ...
A: N = 10 Interest rate = 6% Annual Withdrawal = 500 Deposit at year 1 = 10,000 Deposit at year 5 = 15,...
Q: A borrower has secured a 30 year, $131.000 loan at 8% with monthly payments. Fifteen years later, th...
A: Loan Amount = $131,000 Time period = 30 Years Interest rate = 8%
Q: Question 1: Know your numbers! You are a student at the University of North Anywhere. There are thre...
A: The cost price index shows the effect of inflation on the economy. It is one of the ways to calculat...
Q: ABC Corporation will be issuing serial preference share. A piece has a par value of 6000, coupon rat...
A: Par value = 6000 Coupon = 14% of 6000 = 840 n = 3 years r = 15%
Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...
A: Yield to maturity can be calculated by following function in excel =RATE (nper, pmt, pv, [fv], [typ...
Q: Accumulate $2000 for 3 years at 7% simple interest. O I = $420; F = $2420 %3D %3D O 1= $4200; F= $64...
A: Amount (P) = $2000 n = 3 years r = 7%
Q: You decide to invest in a portfolio consisting of 25 percent Stock A, 35 percent Stock B, and the re...
A: The portfolio return is computed based on weighted returns based on different states of the economy.
Q: Use the following information given by Aysid Wash and Wear Supplies to compute for the Solvency Rati...
A: Debt = $600,000 + $400,000 = $1,000,000 Assets = $2,300,000 Equity = $1,300,000
Q: Differentiate primary markets from secondary markets?
A: Financial Markets refers to the place where financial assets or securities are being created , purc...
Q: A telemarketing company bought a new office space for Php720,000 downpayment and monthly installment...
A: Down payment (DP) = Php720,000 Monthly payment (P) = Php40,000 Period (n) = 42 Months Interest rate ...
Q: 3. 1 2 3 4 15 7. EOY 20 8 9. 10 21 22 23 24 25 26 27 28 29 30 CF $300 A A3 As As Five deposits are m...
A: Deposit value from EOY 21 to 25, decrease by 10% 21 300 22 270 23 243 24 218.7 25 196.8...
Q: Are the following statements true or false? Provide a short justification for vour answer. Suppose y...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: Jane Cruise has U.S. dollars ($) amounting to $1,000,000, and is provided with the following quotes:...
A: Here, Bank C: Euro/US Dollar = €0.8529/$ Bank C: British Pound / US Dollar=£0.7601/$ Bank D: British...
Q: If you think you can sell an asset for $15,000 in eight (8) years and you think the appropriate disc...
A: Amount that would be willing to pay for the asset today = present value of future cash inflows
Q: DISCUSS WHY ESTIMATING THE VALUE FOR A BOND IS EASIER THAN ESTIMATING THE VALUE FOR COMMON STOCK.
A: Stocks are known as equity securities in finance because they make the holder a part owner of the co...
Q: Use the following information in the table below to answer the question: Blanc Blanc Financial Year ...
A: Calculate the book value per share (BVPS) in Year 2019 by dividing the total shareholders' equity wh...
Q: Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were ...
A: New funds: When an organization has been in a growing stage it requires a lot of funds, through whi...
Q: Darnell Limited has capital project opportunities each of which would require an initial investment ...
A: Net Present Value is a capital budgeting technique which helps in the evaluation of an investment pr...
Q: Find the amount of an ordinary annuity of Php18,450 payable quarterly for 3.5 years at 12% compounde...
A: Answer - The future value annuity formula calculates the value at the end of given period i.e. n ...
Q: Calculate the present worth of 12 uniform payments of $12,000 that begin 1 year from now at an inter...
A:
Q: What single payment six months from now would be economically equivalent to payments of $650 due (bu...
A:
Q: Problem 2 ABM Enterprise would like to evaluate/analyze an investment proposal. Given the followin...
A: The Net Present Value: Managers constantly use capital budgeting tools to assess prospective investm...
Explains it correctly not use excel.
Step by step
Solved in 2 steps
- Need answers ASAP... Datu Iro borrows P4000 from his parents for his final year of college. He agrees to repay It at 7% Interest in one payment 3 years later. How much does he repay? How much of this is Interest and how much is principal? Drawthe cash flow diagram.Banking. Josiah has an income of $137,000 that he is willing to spend over a year. If his bank account is giving him 6.12% and the cost associated for him to visit the bank is $6.80. How much should him withdraw per bank trip?A family has $16,000 saved for college tuition. They will need $64,000 for college expenses five years from now. If they place their money in an account with continuous compounding, what annual rate must they find to assure them of the needed $64,000?
- Listen The Chan family would like to establish a bursary at Camosun College. The bursary will pay $2,000 to a deserving finance student each year. Assuming that the payments will never end and that the funds can earn j1=3.5%, how much will it take to establish the bursary? Assume that the payments are at the end of each year. Your Answer:A father wants to set aside money for his 5-year old son's future college education. Money can be deposited in a bank account that pays 8.98% per year, compounded annually. What equal deposits should be made by the father on his son's 6th through 17th birthday, in order to provide Php 5002 on the son's 18th, 19th, 20th, and 21st birthday? Roud off to two decimal places.A mother wants to invest $8 comma 000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $ 480.00 comma how much money was invested in the CD account? The total interest earned after one year is $480.00 . How much money was invested in the CD account?
- (b) A mechanical engineer who is planning for his daughter's college education plans to start depositing money now (year 0) and continue through year 17. If he deposits RM 5,000 each year, (i) Determine how much will his daughter be able to withdraw each year starting in year 18 and continuing through year 22? Assume the account earns interest at 10% per year.Parvati wants to donate enough money to Camosun College to fund an ongoing annual bursary of $2,750 to a deserving finance student. How much must she donate today in order for the first payment to to be given out in one year? Assume an interest rate of j2=4%.A) When Liam Corbett was born, his grandparents opened a 529 college savings plan for him so that he had enough money to pay for college once he turned 18. His college education is expected to cost $225,000 on the day he turns 18 years old. Determine if there will be enough in the account given the following assumptions (Show your calculations): Assumption #1: The grandparents contribute $6,200 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 2: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 7%. Assumption # 3: The grandparents contribute $5,000 per year starting the day Liam is born and the account earns an average annual rate of return of 9%. Assumption #4: The grandparents contribute $8,500 per year starting the day Liam is born and the account earns an average annual rate of return of 4%. Assumption # 5: The grandparents contribute…
- Tait is entering high school and is determined to save money for college. Tait feels he can save $2,500 each year for the next four years from his part-time job. If Tait is able to invest at 6%, how much will he have when he starts college? (Click the icon to view Present Value of $1 table.) E (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) E (Click the icon to view Future Value of Ordinary Annuity of $1 table.) - X Reference (Round your answer to the nearest dollar.) Reference When Tait starts college he will have Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Future Value of $1 0.990 0.980 0.971 0.962 0.952 0.943 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.840 0.961 0.924 0.888 0.855 0.823 0.792 0.951 0.906 0.863 0.822 0.784 0.747 0.917 0.909 0.893 | 0.877 0.870 0.862 0.847 0.833 0.826 0.797 0.769 0.756 0.743…Parvati wants to donate enough money to Camosun College to fund an ongoing annual bursary of $2,750 to a deserving finance student. How much must she donate today in order for the first payment to to be given out in one year? Assume an interest rate of j2=4%. Your Answer: Answer3. A young engineering student has just graduated in college. He is able toobtain his first job and desires to establish a retirement fund. At the end of every year,he deposits ₱5,000. Money is worth 12% compounded annually. How old is he whenthe fund has an accumulated value of ₱2M?
