Determine the rate of return for the following cash flow using trail & error approach with linear interpolation. Don’t use excel use the linear interpolation formula
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- Capital Compound Amount Factor Compound Amount Factor Sinking Fund Factor me nearest dollar.) Present Worth Factor Recovery Factor Present Worth Factor To Find P To Find A To Find A To Find F Given P F/P To Find P Given F To Find F Given A FIA Given A Given F Given P N. P/F PIA A/F A/P 1.0300 0.9709 1.0000 0.9709 1.0000 1.0300 1.9135 0.4926 0.5226 2.0300 3.0909 4.1836 1.0609 0.9426 1.0927 0.9151 2.8286 0.3235 0.3535 4 1.1255 0.8885 3.7171 0.2390 0.2690 1.1593 0.8626 5.3091 4.5797 0.1884 0.2184 6 1.1941 0.8375 6.4684 5.4172 0.1546 0.1846 1.2299 0.8131 7.6625 6.2303 0.1305 0.1605 8 1.2668 0.7894 8.8923 7.0197 0.1125 0.1425 7.7861 8.5302 9.2526 9 1.3048 0.7664 10.1591 0.0984 0.1284 10 1.3439 0.7441 11.4639 0.0872 0.1172 11 1.3842 0.7224 12.8078 0.0781 0.1081 12 1.4258 0.7014 14.1920 9.9540 0.0705 0.1005 13 1.4685 0.6810 15.6178 17.0863 10.6350 0.0640 0.0585 0.0538 0.0940 14 1.5126 0.6611 11.2961 0.0885 0.0838 15 1.5580 0.6419 18.5989 11.9379 16 1.6047 0.6232 20.1569 12.5611 0.0496 0.0460…4. An industrial firm can purchase a special machine for $70,000. A down payment of $5,000 is required, and the unpaid balance can be paid off in five equal year-end installments at 9% interest. As an alternative, the machine can be purchased for $66,000 in cash. If the firm's MARR is 10%, use the annual equivalent method to determine which alternative should be accepted. 6 6 Click the icon to view the interest factors for discrete compounding when i= 9% per year. 7 Click the icon to view the interest factors for discrete compounding when MARR = 10% per year. The annual equivalent worth of the first option is $ (Round to the nearest dollar.) The annual equivalent worth of the second option is $ (Round to the nearest dollar.) Select the correct choice from the drop-down menu below. (1). is a better choice. 6: More Info Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund Worth Recovery Factor Factor Factor Factor Factor Factor…ou decided to go and apply for a credit card at your local financial institution.The Prime rate currently announced on June 1 was 3.25%. You have goodcredit history and a FICO score of 700. The lowest rate that they can offer toindividuals is a 18.99% APR for a credit card that gives cashback on purchasesand rewards. You were offered 21.99% APR for the credit card. How did thelender determine or calculate what rate they should offer you?
- allie has won a lottery that pays her $135,000 at the end of this year and increases by 11.25% per year thereafter for 26 years. leon has offered allie $ 2,500,000 today in exchange for all the money she will receive. if gail can get 13% per year compounded every 6 months. a. determine the present worth of the lottery winnings. b. does leon offer a good deal? (yes/no) c. what is the future worth of the better deal?How much must be invested now at 6% simple interest to accumulate $1,000 at the end of 5 years? Choose an answer by clicking on one of the letters below, or click on "Review topic" if needed. A P = $1,000 / [ 1 + (0.06)(5) ] = $1,000 / 1.30 = $769 B F = $1,000 [ 1 + (0.06)(5) ] = $1,000 (1.30) = $1,300 C P = $1,000 / 5 = $200 D P = $1,000 (P/F,6%,5) = $1,000 (0.7473) = $747The problem describes a debt to be amortized. (Round your answers to the nearest cent.) Sean Lee purchases $40,000 worth of supplies for his restaurant by making a $2,000 down payment and amortizing the remaining cost with quarterly payments over the next 7 years. The interest rate on the debt is 16% compounded quarterly. (a) Find the size of each payment. $ (b) Find the total amount paid for the purchase. $ (c) Find the total interest paid over the life of the loan. $
- Student Loans Willie Wilson plans to borrow $36,627 at the beginning of each of his 4 years of college. He will repay the loan in 14 equal annual installments at the end of each year starting one year after he graduates. If the interest rate is 10.38%, how large will the installments be? Interest will accrue on Willie's loan while he is in college. Numeric ResponseQuestion 3 A charity organization will donate for the education of indigent students. The donation will be spent as follows: P1260154 annually for each of the 1st five years; P2440221 annually for each of the next five years; and P3388889 annually thereafter. The funding will begin one year after the organization is established. If the money earns 20% cpd. quarterly, what is the amount of the donation? Add your answer1.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000 2.The simple interest on a $6500 loan at 15% for 9 months is. a)$731.25 b)$7312.50 c)$73.13 d)$2925 3. If we deposit $5000 in an account that pays 9% per year. Find the amount of simple interest earned during 8 months. a)$3000 b)$300 c)$360 d)$3600 4.The simple interest charged on a loan amount of $8500 for 2 years was $1275. What rate of interest was charged a)22.5% b)3.75% c)15% d)7.5% 5.What rate of simple interest will make a principal double itself in 6 years. a)16.67% b)8.33% c)33.33% d)4.16% 6.Find the present value of $20800 in 4 months at 12% simple interest. a)$200 b)$200,000 c)$2000 d)$20000
- Find the future value and total interest of the annuity. (Round to the nearest cent as needed.) Annuity type Periodic payment Annual interest rate Payment paid Years Ordinary annuity $2,100 6% Quarterly 3 Future Value of $1.00 Ordinary Annuity Rate per period Periods 0.25% 0.50% 0.75% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.002 2.005 2.008 2.010 2.015 2.020 2.025 2.030 2.035 2.040 3 3.008 3.015 3.023 3.030 3.045 3.060 3.076 3.091 3.106 3.122 4 4.015 4.030 4.045 4.060 4.091 4.122 4.153 4.184 4.215 4.246 5 5.025 5.050 5.076 5.101 5.152 5.204 5.256 5.309 5.362 5.416 6 6.038 6.076 6.114 6.152 6.230 6.308 6.388 6.468 6.55 6.633 7 7.053 7.106 7.159 7.214 7.323 7.434 7.547 7.662…R-61 [Review Question] I. F=A(F/A, 1%, 6) II. F=A(F/A, 1%, 5)(P/F, 1%, 1) III. F=A(P/A, 1%, 5)(F/P, i%, 6) IV. F=A(F/A, 1%, 4)(F/P, i%, 2)+A(F/P, i%, 1) V. F=5A(F/P, i%, 6) VI. F=5A(F/P, i% 1) i% о 12 3 4 5 How many equation(s) regarding F above is (are) correct? (A) 1 (B) 2 (C) 3 (D) More than 3 A A A A Ans: [B]Manual calculation and cash flow diagram!