Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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If the initial margin is $5,000, the maintenance margin is $3,500 and your balance is $4,000, how much must you deposit? computation
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- Use the formula for the future value of an ordinary annuity to solve for n when A = $6,000, the monthly payment r = $550 and annual intrest r = 8.5%arrow_forwardhow did you get the $239.50?arrow_forwardIf you are an investor, you will put a sum amount in a bank account and will keep on adding that amount into that account until you want. Once you get to retire from your job you can start getting that amount in the form of constant or variable payouts. This amount considered as: A. Annuity B. Retirement planning C. Accumulate interestarrow_forward
- Isn't the final payment going to be $144.78? How did you get final payment of $138.51arrow_forwardPlease use a physical TIMELINE to solve.arrow_forwardvear fromLIow. urn I, Wa. the payments occurred i orever? 5. Caiculating Annuity Cash Flows. If you put up $20,000 today in exchange for a 8.5 percent, 12-year annuity, what will the annual cash flow be?arrow_forward
- An accounting firm agrees to purchase a computer for $180,000 (cash on delivery) and the delivery date is in 270 days. How much do the owners need to deposit in an account paying 0.85% compounded quarterly so that they will have $180,000 in 270 days? (a) State the type. sinking fund amortization present value future value ordinary annuity (b) Answer the question. (Round your answer to the nearest cent.) $arrow_forwardHow much is the present value of a perpetuity of P1,000 payable semi-annually if money is worth 5% quarterly? Please also show the Cash Flow Diagram if needed. Thank you very mucharrow_forwardI need help with this question.arrow_forward
- Use a calculator to evaluate an ordinary annuity formula for m, r, and t (respectively). Assume monthly payments. (Round your answer to the nearest cent.) $20; 4%; 30 yr A = $arrow_forwardAnnuity Present Value Inputs Payment $80 Discount Rate/Period 6% Number of Periods Present Value using a Time Line Period 1 2 4 Cash Flows 80 80 80 80 80 Present Value of Each Cash Flow 75.4717 71.19972 67.16954 63.36749 59.78065 Present Value Annuity Present Value using the Formula Present Value Annuity Present Value using the PV Function Present Valuearrow_forward(Present value of complex cash flows) How much do you have to deposit today so that beginning 11 years from now you can withdraw $13,000 a year for the next 4 years (periods 11 through 14) plus an additional amount of $26,000 in the last year (period 14)? Assume an interest rate of 12 percent.arrow_forward
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