Determine the breakeven resale price 15 years from now of an apartment house that can be bought today for $250,000. Its annual net income is $22,000. The owner wants a 10% annual return on her investment.

Q: A machine needs P15, 000 annually for its maintenance during its perpetual life. Find the present…

A: Present amount refers to a future stream of cash flows' current value given a specified return rate.…

Q: a perpetuity has a price of $750 and an annual interest payment of $35,

A:

Q: BOND PROBLEM: $1675 bond matures in 16.5 years. Coupon rate 3.39%. Payment made biweekly. R=…

A: 1. Calculate the future value (FV) after 5 years:  - Present value (PV) = $1675  - Effective annual…

Q: What is the future value of $100 next year. If discount rate is 5% annually

A: Present value = $100  Discount rate = 5%  Future value = PV * (1+i)

Q: Current maintenance cost of a certain machine is P1,200 and increases by 250 each year for the next…

A: Year Maintenance Cost 1 1200 2 1450 3 1700 4 1950 5 2200 6 2450 7 2700 8 2950 9…

Q: Given a loan for $58,000.00 at an interest rate of 16.15% for 5 years, determine your annual payment…

A: The objective of this task is to determine the annual payment amount for a loan of $58,000.00 with a…

Q: Jane Doe plans to make twelve ​end-of-month payments of ​$17,000 each on a short term investment…

A: To calculate the present worth (P0) of these payments, we can use the formula for the present value…

Q: simple interest

A: Simple interest is received every period on the principal amount at a fixed rate. The amount of…

Q: Multiperiod Consumption-Saving Plan Assume a person is 35 years old and plans to retire at age 65.…

A: Life-cycle Hypothesis: Developed by Modigliani et al, the life-cycle hypothesis shows the…

Q: Ashley purchased a common stock worth $5,000 every year (starting in year 1) for a period of 10…

A: Investment each year = 5000 $ time = 10 years future value = 80000

Q: A vintner is deciding when to release a vintage of Sauvignon Blanc. If it is bottled and released…

A: The time value of money (TVM) reflects the idea that a sum of money has a different value today than…

Q: What method is used to translate a project's cash flow into equivalent net from present value?

A: To calculate a project's net present value (NPV), the project's required rate of return is used to…

Q: If an electric appliance present worth is P120,000.00 and is being paid P5000.00 indefinitely,…

A:

Q: Calculate the effective annual rate of interest which is equivalent to an effective rate of interest…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: A project's annual revenue will be $50,000 the first year and will decrease by $1500 per year over…

A: Given a specific return rate, the present value of an investment is its future cash flow value…

Q: Discount P1,650 for 4 months at 6% simple interest. What is the discount?

A: Given, Amount (P)=$1650 Time period (T)=4 months Simple Interest (R)=6%

Q: You have choice when subscribing to our magazine for four years: you can   Option A: pay $100 now…

A: In economics, present value refers to the current value of a future stream of cash flow. Future…

Q: determine the breakeven resale price 10 years from now of an apartment house that can be bought…

A: Breakeven sale can be defined as the minimum amount at which a sale is made in which the seller is…

Q: Find the value of a British Consol with a face value $2,000 and pays $35 in perpetuity. The interest…

A: Bonds are investment instruments that are invested in with the expectation of earning a return from…

Q: Emma borrowed $3,000 from a lending company for 3 years at 12%. At the end of 3 years, it renews the…

A: borrow at period 0 Amount = 3,000 n = 3 years r = 12% Renews after 3 years Amount = 2,000 n = 2…

Q: The company you work for assumes that a piece of equipment will need to be replaced in 10 years.…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: A deposit of $1500 is made into a fund on March 18. The fund earns simple interest at 5%. On August…

A: on March 18 deposit = 1500 for 6% On Aug 5 interest rate Changed to 4.5% Fund value at 23 October

Q: If the interest rate is 4%, what is the approximate future value of $15,000 in 10 years?

A: Future Value = PV ( 1 + i )n where PV = Present value i = Interest rate n = Number of years   Here…

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: The winner of a sweepstakes prize is given the choice of a one-time payment of $1,000,000 or a…

A: The present value(PV) of a annuity is found out by: PV of Annuity=Annuity1-1+r-n÷r

Q: Stan Slickum has a used car that can be bought for $8,700 cash or for a $2,000 down payment and $780…

A: Given the price = 8700 Down payment = 2000 Effective price = 8700 - 2000 = 6700

Q: Suppose you invest $2000 today, another $200 one year from now, and still another $800 two years…

A: Given the invested amount = $2000 After one year invested amount = $200 After two year invested…

Q: An investment wil pay you $25,400 in 20 years. The steted nterest rate is 13% (APR). Finterest in…

A: Present value, also known as present discounted value, is the value of an expected income stream…

Q: The average median 2019 price of a home here in Columbia, SC was around $145,000. That price is not…

A: Price of house = $145000 Interest rate on loan = 3.92% The time period for loan = 30 years

Q: Mac has deposited $6,000 in a money market account with a variable interest rate. The account…

A: Deposited amount = $6000 Time period = 9 months The interest rate is 8%, 9%, and 8%.

Q: To manufacture a switchboard it costs $275. If the desired percent markup based on cost is 46%, how…

A:

Q: Determine the present value of a perpetuity of P100,000 payables annually, with the first payment…

A: perpetuity of P100,000 payables annually Money is worth 10%

Q: In order to go to college, Lucy borrowed money from Happy 3 years ago. She borrowed a sum of…

A: Amount borrowed P = 50,000           Interest rate R = 5%                      Time  T = 8 years…

Q: Question 3 A=R300 Determine the present value P for the annuities shown in the diagram above if an…

A: Annuity is a sum (mostly fixed) which one party pays to another at regular intervals. It can be…

Q: Q.30) A $100,000 investment is make over a 10-years period. A return of $23,000 occurs at the end of…

A: Equivalent present worth - it represent the amount today is worth more than that exact amount in…

Q: When you take your job, you decide to start saving for your retirement. You put $5,000/yr into the…

A: Monthly investment A= 5000 Rate of interest = 8% / year We have to calculate the amount of total…

Q: You are planning to invest $4,000 in an account earning 8% per year for retirement. a. If you put…

A: In the referenced inquiry we are posed with regards to the future worth we will finish from the…

Q: An R&D lab will receive $250,000 when a proposed contract is signed, a $200,000 progress payment…

A: Present Value of amount received after n years is given by: future value / (1+R)t R = 15 percent The…

Q: With a nominal interest rate of 5%, the present discounted value of R100 to be received in two years…

A: Given, Interest rate (i) = 5%Future value = R 100Time = 2 years The present value (PV) factor is…

Q: Your company wants to set aside a fixed amount every year to a sinking fund to replace a piece of…

A: A fund that is created to repay a debt or replacement of an asset by putting an equal sum of amount…

Q: Justin invested $ 6070 at 8% interest rate per annum. Calculate the future value Pt after 3 years if…

A: Compound interest calculates the compounded amount earned on an investment or a loan

Q: What is the effective cost of a combination of an 80% mortgage at 3% and a second mortgage (for 10%…

A: The interest rate is the quantity a lender costs a borrower and is a percent of the principal—the…