Find the future value and present value using the ordinary annuity and. No. Principal Rate Mode of Payment Term 2% P40,000 P100,000 P340,000 Annually Quarterly Monthly Semiannually 3 years 5 years 10 years 12 years 1 4% 6% P1,240,000 9% -234
Q: Use the table for the questions below. Consider the following balance sheets: PharmPic D...
A: Total equity of pharm pic =226315 +113158 = 339473 Debt equity ratio of pharm pic = 290000 ÷ 339473...
Q: The cash flows shown in the table below occur every six months (bi-annually) and have a total presen...
A: Present value of annuity is the current value of the future payments that are calculated using the i...
Q: For 13 years, Janet saved $250 at the beginning of every month in a fund that earned 4.5% compounded...
A: Compounding is a method of charging interest in which Interest is charged on the amount including or...
Q: (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carryi...
A: Answer - Part B - Calculation of New Beta and Cost of Equity - B = 0.87*(1+(1-.35)(0.35/0.65)) B...
Q: Give 1 example of ordinary interest and explain in 5 sentences when and where to apply this.
A: The interest rate is the amount charged by a lender to a borrower and is expressed as a percentage o...
Q: The risk-free rate is 3% and you believe that the S&P 500's excess return (market risk premium) will...
A: Risk free rate = 3% Market risk premium = 10% Beta = 1.2
Q: Lola Inc. must compute EPS for its 2020 reports. The following information is available to the contr...
A: Diluted Earnings Per Share or Diluted EPS refers to the metrics which shows the net income that is g...
Q: Lux Co. has a total annual cash requirement of P9,030,000 which are to be paid uniformly. Lux has th...
A: The questiom is related to Baumol Cash model. The optimum cosh conversion size is calculated with th...
Q: Two bonds are selling at par value and each has 17 years to maturity. The first bond has a coupon ra...
A: Duration refers to the price sensitivity of a bond, or a portfolio of bonds, to a change in interest...
Q: Harding Company is in the process of purchasing several large pieces of equipment from Danning Machi...
A: Data given: Payment options: 1.Pay $1,130,000 in cash immediately.2. Pay $402,000 immediately and th...
Q: National Co., 65% owned by National Holdings Group, provides screening, diagnostic and therapeutic s...
A: D0 = P 0.14 D1 = P 0.14(1.15) = P 0.161 D2 = P 0.14(1.15)^2 = P 0.185 D3 = P 0.14(1.15)^3 = P 0.213 ...
Q: In its first 10 years a mutual fund produced an average annual return of 19.17%. Assume that money i...
A: Future value is the total amount of money at a specified point of time.
Q: Assume the zero-coupon yields on default-free securities are as summarized in the following table: M...
A: Bond Bonds are debts instruments that are issued by entities to raise funds and meet their capital r...
Q: Calculating Future Values Assume you deposit $1,000 today in an account that pays 8 percent interest...
A: The future value (FV) is the amount of money at some future time given a particular interest rate an...
Q: You are considering adding Gamma stock to your portfolio. What is the required return on the stock i...
A: Required return: It is the return that is accepted by an investor for holding a stock of a particula...
Q: (Annuity interest rate) Your folks just called and would like some advice from you. An insurance age...
A: An annuity refers to a series of equal and regular payments or receipts at fixed intervals. The valu...
Q: In how many years is required for $2000 to increase by $3000 if interest is 12% compounded semi annu...
A: Compound interest (also known as compounding interest) is interest calculated on a loan or deposit u...
Q: ABC has relatively constant returns from its operations. Average annual profit figures are as follow...
A: Debt amount = 3,000,000 Coupon Rate = 8% Tax Rate = 35% Weighted average cost of capital = 15%
Q: Lux Co. would like to maintain its cash account at a minimum level of P25,000, but expect the standa...
A: Optimal upper cash limit means the limit where the cash balance is of the amount which is of ideal s...
Q: Consider the following statement: "If you are 20 years of age and save $1.00 each day for the rest o...
A: The rate of inflation reduces the purchasing power of money due to an increase in the price of commo...
Q: PharmPic is considering the following project with the following cash flows: ...
A: Cash flows for Pharmpic project: Cash flows for DosageDoc project To Find: Payback period Discoun...
Q: The average rate of return on a 182-day Government of Canada treasury bill sold on June 18, 2021, wa...
A: Par Value of bond is $100,000 Time period to maturity is 182 days Rate is 1.03% at the time of issue...
Q: What is the expected return for the following portfolio? (State your answer in percent with two deci...
A: The question is related to Expected Return of Portfolio. The expected return of Portfolio is calcula...
Q: The market value of floating-rate debt of $200,000 will: Multiple Choice rise by $2,000 with a...
A: Floating Rate debt: A bond or a debt that carries a floating rate of interest will pay varying coupo...
Q: Assume you expect a company’s net income to remain stable at $3500 for all future years, and you exp...
A: The Capital asset pricing Model is widely used for estimating the cost of equity. The CAPM formula i...
Q: 15. A company is considering two mutually exclusive projects. Both require an initial cash outlay of...
A: Initial Investment = 20,000 each Required Return = 10% Tax Rate = 35% Straight line depreciation N =...
Q: Your parent started to deposit monthly $20,000 in the bank 2 years after birth. The bank offers are ...
A: Amount deposited $20,000 monthly Rate of interest is 6%.
Q: How long will the given principal P take to reach the aiven maturity value A at the given simple int...
A: Number of years in simple interest = (1/r) x [(A/P) - 1] A = Total accrued amount (Interest + Princi...
Q: Compute the receivable turnover ratio Also compute the inventory turnover ratio
A: A quantitative method that provides information about the company including its liquidity, stability...
Q: YIELD CURVES Plots interest rates on different securities of similar default risk for a given day Us...
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...
Q: YIELD CURVES Figure 5.6 Yield Curves, Mid-February, Every Four Years, 1977-2013 16 14 - 1981 12 1985...
A: Yield curve is a graphical representation of yields or interest rates of different bonds which has s...
Q: 10. We have the following exchange rates. $1.58/E1, $1.30/€1, and €1.40/E1. What will be the profit ...
A: From third relation, 1 Pound = 1.40 Euro
Q: The present value is Php 16,300.00, the interest rate is 9% compounded monthly for 6 years. What is ...
A: Here, Present value is Php16,300 Interest Rate (r) is 9% Compounding Period (m) is Monthly i.e. 12 T...
Q: If you deposit $100 today and $200 in two years in an account that earns 10% annual interest, how mu...
A:
Q: (Refer to this word problem In order to plan for their retirement, a married couple decides to purch...
A: Future Value: The future value is the amount that will be received at the end of a certain period. T...
Q: 18. Calculating Future Values You have just made your first $5,000 contribution to your individual r...
A: Future Value: The future value is the amount that will be received at the end of a certain period. T...
Q: B. The target of Co. X is to maintain a financial leverage of 48%. The Co. has deviated negatively f...
A: Financial Leverage and Gearing: Financial leverage refers to the quantum of debt a company employs i...
Q: onsider the following four alternatives: i. £132 received in two years ii. £160 received in five y...
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rat...
Q: B. UNDERSTANDING: B.1 Direction: Solve and show your complete solution on the following problems. Us...
A: The income for bond investors comes in the form of coupon payments which remains constant over each ...
Q: Paul obtains a 30-year loan at an annual 7.4% on a $250,000 house where the required down payment is...
A: Given: Years = 30 Interest rate = 7.4% Cost of house = $250,000 Down payment = 15%
Q: Suppose Real Option Inc. has a product that generates the following cash flow. At t=1, the deman...
A: Since you have posted a question with multiple sub parts therefore, we will be solving the first thr...
Q: Future Value - single sums If you deposit $100 in an account earning 6% with monthly compounding, ho...
A: Present value (PV) = $100 Interest rate = 6% Monthly interest rate (r)= 6%/12 = 0.50% Period = 5 Yea...
Q: As a middle-class individual, why would you prioritize saving for a retirement fund than imburse to...
A: Financial planning is an indispensable part of the human race. It assists an individual to prepare a...
Q: Suppose you want to buy a $150,000 home. You found a bank that offers a 30-year loan at 4.1% APR. Wh...
A: Cost of House is $150,000 Time period is 30 years and 25 years. APR is 4.1% To Find: Monthly paymen...
Q: A firm has daily cash receipts of P100,000. A bank has offered to reduce the collection time on the ...
A: Daily cash receipts = P 100000 Reduction in collection time (n) = 3 days Monthly fee = P 500 r = 5%
Q: Use the future value formula to find the indicated value FV=5,000; i = 0.03; PMT = $400; n=? n= (Rou...
A: Data given: FV= $ 5000 i= 0.03 PMT = $ 400 Required:: n Formula to be used :: FV= PMT*(1+i)n-1i ...
Q: In certain cases, experience will indicate the best time to perform certain operations to maintain e...
A: Answer - Part 1 - Calculation of Cost per piece - ( 200 pieces) Particular Amount Piece pro...
Q: If you paid $68 to a loan company for the use of $1043 for 39 days, what annual rate of interest did...
A: Interest = Principle * Interest rate * Time of loan / 360 days
Q: PART A.) Decide which of the following machines should be selected (if one of them MUST be selected)...
A: The present value of a project is used to find its profitability by discounting cash flows and them ...
Step by step
Solved in 2 steps
- ests - X þver Reference Reference Present Value of Ordinary Annuity of $1 Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 0.905 0.820 | 0.744 0.676 0.614 | 0.558 0.508 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% us Period 1 Period 2 Period 3 Period 4 Period 5 0.935 0.952 0.943 0.935 1.859 1.833 1.808 0.926 0.917 0.909 0.893 0.877 0.870 1.783 1.759 1.736 2.577 2.531 2.487 0.990 0.990 0.980 0.971 0.962 | 0.952 0.980 0.961 0.943 0.925 0.907 0.971 0.942 0.915 0.889 0.864 0.961 0.924 0.888 0.855 0.823 0.951 0.906 0.863 0.822 0.784 0.943 0.917 0.909 0.893 | 0.877 0.842 0.826 0.797 0.769 0.772 0.751 0.712 0.675 0.658 | 0.641 0.708 0.683 0.636 | 0.592 0.572 0.552 0.516 0.482 0.650 0.621 0.567 0.980 0.971 0.962 0.862 0.847 0.833 0.926 0.862 0.847 0.833 1.566 | 1.528 2.174 2.106 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798…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…Атount of Еach Deposit Rate Number Туре Атount Deposited per Year of Years of Annuity of Annuity 1. $1000 annually 6% 8 ordinary 2. $4500 semiannually 10% ordinary 3. $30,000 quarterly 8% 6. due 4. $2600 semiannually 5% 12 due
- elow is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636 5 0.747 0.621 0.567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the present value of $30,000 to be received three years from today, assuming an earnings rate of 6%?Questic Present Value of Annuity Not ye Annuity Years Interest Rate Compounding Due Marke $100.00 37 20.00% Weekly P Flac O a. $42,071,286.08 O b. $41,910,093.41 O c. $26,083.82 O d. $25,983.88 X N hpI P5-20 Present value of an annuity Consider the following cases. Case Amount of annuity Interest rate Penod lyears) $12,000 55,000 A 12 200 20 140,000 22,500 10 a. Caleulate the present value of the annuity nssuming that it is (1) An ordinary annuity. (2) An annuity due. b. Compare your findings in parts a(1) and a(2). All else being identical, whih of annuity ordinary or annuity due-is preferable? Explain why.
- Find the future value of the ordinary annuity. Interest is compounded annually, unless otherwise indicated. R= $1,000, i- 0.04, n = 13 O $41.626.84 O $15,025.81 O 54002.58Present value of an annuity Consider the following cases. Case ◄AUA- E Amount of annuity $ 12.000 55.000 700 140.000 22.500 Interest rate 12 20 5 10 Period (years) a. Calculate the present value of the annuity assuming that it is (1) An ordinary annuity, mu 9 7 b. Compare your findings in parts al 1) and a(2). All else being identical, which of annuity-ordinary or annuity due-is preferable? Explain why. Personal Finance Problem Tume value-Annuities - Marian Kirk wishes to select the better of two 10-year annuines, C and D. Annuity C is an ordinary annuity of $2,500 per year for 10 years. Annuity D is an annuity due of $2,200 per year for 10 years. delen future value of both annuities at the end of year 10, assuming thatBelow is a table for the present value of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 .890 .826 .797 3 .840 .751 .712 4 .792 .683 .636 5 .747 .621 .567 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 1.833 1.736 1.690 3 2.673 2.487 2.402 4 3.465 3.170 3.037 5 4.212 3.791 3.605 Using the tables above, what would be the present value of $15,000 (rounded to the nearest dollar) to be received three years from today, assuming an earnings rate of 6%? a.$12,600 b.$40,095 c.$14,145 d.$13,350
- Following is a table for the present value of $1 at compound interest: Year 6% 1 0.943 2 0.890 3 0.840 4 0.792 5 0.747 Following is a table for the present value of an annuity of $1 at compound interest: Year 6% 10% 1 0.943 0.909 2 1.833 1.736 2.673 2.487 3.465 3.170 4.212 3.791 10% 0.909 0.826 0.751 0.683 0.621 3 12% 0.893 0.797 0.712 0.636 0.567 12% 0.893 1.690 2.402 3.037 5 3.605 Using the tables provided, the present value of $6,103.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%, is Oa. $14,659 Ob. $6,103 Oc. $18,535 Od. $22,001Use the table below to answer the following questions: Present Value of an Annuity of 1 Future Value of an Annuity of 1 Period 4% 5% 8% 10% 4% 5% 8% 10% 4 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 5 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 6 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 7 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 8 6.7327 6.4632 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 9 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 10 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 11 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 Bobby receives alimony payments every 6 months and the next payment is tomorrow. Median homes go for $950,000 and he wants to save $190,000 in 4 years. How much money should Bobby put away into an investment each time he receives alimony payments if he can get a 8% return a year? Group of answer choices…Use the table below to answer the following questions: Present Value of an Annuity of 1 Future Value of an Annuity of 1 Period 4% 5% 8% 10% 4% 5% 8% 10% 4 3.6299 3.5460 3.3121 3.1699 4.2465 4.3101 4.5061 4.6410 5 4.4518 4.3295 3.9927 3.7908 5.4163 5.5256 5.8666 6.1051 6 5.2421 5.0757 4.6229 4.3553 6.6330 6.8019 7.3359 7.7156 7 6.0021 5.7864 5.2064 4.8684 7.8983 8.1420 8.9228 9.4872 8 6.7327 6.4632 5.7466 5.3349 9.2142 9.5491 10.6366 11.4359 9 7.4353 7.1078 6.2469 5.7590 10.5828 11.0266 12.4876 13.5795 10 8.1109 7.7217 6.7101 6.1446 12.0061 12.5779 14.4866 15.9374 11 8.7605 8.3064 7.1390 6.4951 13.4864 14.2068 16.6455 18.5312 Bobby gets a yearly alimony payment from his ex-wife and wants to saves enough to put a 15% down payment on a home in 4 years. Median…