Q3. Ricardo plans to own a 1 hectare lot after 10 years for an estimated cost of P5M. To accumulate this amount, he will make equal year and deposits in a fund earning 15% compounded annually. However, at the end of the 7th year, he decided to turn it into an agricultural farm and is planning to buy seeds and other things worth P2M. What should be his deposits in the last 3 years? Answer: A = P822,214.23
Q: How did they come up with the Total Project Benefit Costs, Yearly NPV, and Cumulative NPV? We are…
A: Here, To Find: Total Project Benefit Costs =? Yearly NPV =? Cumulative NPV =?
Q: b. Hedging
A: The stock market refers to the buying and selling of the shares in publicly held companies by the…
Q: Suppose you bought a bond with an annual coupon rate of 7.1 percent one year ago for $894. The bond…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: Income tax is levied on all of the following taxable items except: O Wages O Interest and dividends…
A: Income tax is levied on Wages, Interest and dividends from moeny invested and Capital gains from…
Q: Caroline purchased 100 shares of Coca-Cola (K) in early 2012 for $35 07/share. KO paid the following…
A: Total return on sale of shares which were purchased previously = (selling price -purchase price…
Q: Discuss the concepts of over- and understoring and describe their relationship to the Index of…
A: The Index of Retail Saturation (IRS) is the ratio of available supply to demand for a product…
Q: w/ ル 16 AaBbCcDc AaBbCcDc AABBCC AABBCCC A 1 Normal 1 No Spac... Heading 1 Heading 2 , 三 Paragraph…
A: Ratios are given as follows for 2 years: 2018 2017 Current Ratio 4.26470 4.82510 Acid test…
Q: The Everly Equipment Company's flange-lipping machine was purchased 5 years ago for $40,000. It had…
A: Amount of the initial cash flow at Year 0. The incremental net cash flows that will occur at the…
Q: You borrow money on a self liquidating installment loan (equal payments at the end of each year,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: A local business received a $45,000 loan at 4.95% compounded semi-annually. The business settled the…
A: Here, Value of Loan is $45,000 Interest Rate is 4.95% Monthly Payment is $650 Compounding Period is…
Q: ) Gabrielle needs $200,000 in eight years. She has set up a sinking fund that earns 5% compounded…
A: Future Value is $200,000 Time period is 8 years Interest rate compounded monthly is 5% To Find:…
Q: OLVED QUESTIONS 1 and 2 and need help solving QUESTION 3 ONLY 1. A bank customer obtains a…
A: Number of payment can be calculated using the formula: NPER in the Excel.
Q: Q#3. Stocks A and B have the following historical returns: Year rA rB 2015 -18% 56% 2016 44% 8% 2017…
A: As per Bartleby guidelines,If a question with multiple sub-parts are posted, first 3 sub-parts will…
Q: Carson Corporation stock sells for $53 per share, and you’ve decided to purchase as many shares as…
A: Stocks refer to the security that represents the ownership of the holder in the company. The stock…
Q: Q6. You plan to deposit P100 into a savings account at the end of each month for the next 5 years.…
A: Note: The Answer, given for part b is mentioned incorrect, so we are solving the correct one for you…
Q: Croft Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its…
A: Common stock ratio (E) = 70% Debt ratio (D) = 30% Cost of equity (Ke) = 16% Cost of debt (Kd) = 8%…
Q: Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis Mackinaw Inc. processes…
A: Answer- Working Note: Particular Actual quantity x actual price/rate Actual quantity x…
Q: Using the same begging portion of the above problem -- A cotton buyer will be making a purchase of…
A: The cash market and future market are interrelated to each but both moves in opposite directions so…
Q: XYZ Company currently has bonds outstanding with a face value of $1,000 that mature in 18 years. The…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: For this investment, an initial amount of $25,000 should be paid this year (t=0). As of next year…
A: The present value method is a method of finding the productivity of the project by discounting the…
Q: ve Php 100 a month you can deposit into an account earning 3.9% APR, compounded monthly. How long…
A: As there is more compounding the more is the interest rate and more is the accumulation of interest…
Q: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…
A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…
Q: ntify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be…
A: Loans are to be paid by equal periodic payments that carry payment of principal amount and payment…
Q: 1. An investment of P270, 000 can be made in a project that will produce a uniform annual revenue of…
A: Given, In this question we have to find the given payback period of the investment.
Q: You have $100 a month you can deposit into an account earning 3.9% APR, compounded monthly. How long…
A: Given that: Accumulated Value (A)=$10000 Principal amount (P)=$100 Interest rate (R)=3.9%=0.039 t=?…
Q: Compute for the bank's income if a client will purchase USD375,000 @ P50.76 = $1 based on P50.30…
A: Purchased currency = $375,000 Transaction exchange rate $1 = P50.76 Benchmark exchange rate $1 =…
Q: Calculate the APR of a loan for $10,025, including loan fees of $310, at 11% for 6 years. (Do not…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The Minister of Finance is reviewing the depreciation regulations. Currently the Canadian Income Tax…
A: Patent Cost = $700,000 Existing depreciation on Intangible = Straight-line basis for 7 years Revised…
Q: (a) Find the APY for money invested at 7.2% compounded continuously?
A: "Hi, Thanks for the Question. Since you asked multiple question, we will answer first question for…
Q: Month: April (30 days), previous month s Balahce: $270 Use the average daily balance method to…
A: Credit card finance charge: Any fee related to borrowing money and repaying it over time is referred…
Q: ind pays no dividends. One year from now, there is a 50% (risk-neutral) probability that the stock…
A: European call can be exercised only on expiration unlike American call that can be exercised any…
Q: Suppose the market risk premium is 6% and the risk-free interest rate is 6%. Using the data in the…
A: Risk free rate = 6% Market risk premium = 6% Starbucks beta = 0.80 Hershey beta = 0.33 Autodesk beta…
Q: (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity…
A: Time value of money (TVM) is used to measure the value of money at different point of time in the…
Q: 4. a. Now assuming that a bank offers you a 30-year loan at 3.25% compounded monthly to pay the…
A: Mortgage means the amount which is borrowed from external sources like banks. This amount is repaid…
Q: Capacity Use and External Financing. If Growth Industries from Problem 13 is operating at only 75%…
A: Given: Particulars Amount Liabilities $10,000 Net income $31,600 Sales $200,000 Total…
Q: In order to have ₱1 million in a fund at the end of 15 years, how much must be deposited in the fund…
A: Future value (FV) is ₱1,000,000. The maturity period is 15 years. The interest rate is 10.5%. The…
Q: You have $10,000 to invest for 90 days. Current spot rate: $1.32/£. The 90-day forward rate is S38,…
A: No arbitrage forward is that exchange rate which is according the interest rate of the two…
Q: What’s one personal finance lesson that you find important?
A: Handling the reality of personal money may be difficult, even for an adult with a lot of…
Q: Fifteen $5,000 bonds redeemable at par bearing 8% coupons payable quarterly are sold nine years…
A: Number of bonds = 15 Coupon rate = 8% (Compounded quarterly) Time period = 9 years Yield to maturity…
Q: d) What are the key developments in electronic banking does in recent time? How h a s it become so…
A: The advancement and progression of information and communication technology, combined with the…
Q: Thangmo Company is a large manufacturing firm in Cherating that was created 20 years ago by the…
A: The term financial cost refers to the amount a bank or financial institution spends to raise funds…
Q: ABC Technologies has been growing quite rapidly in recent years and has a growth potential of 27%…
A: Value of stock using earning approach will be present value of all EPS and present value of terminal…
Q: TR issues 6.0%, 10-year bonds with a total face amount of $1,500,000. The market interest rate for…
A: Here, To Find: Part 4. Issue price of the bond =? Part 5. Interest expense at first payment =? Part…
Q: ONO has negotiated a put option contract for 250,000 ounces of gold at an exercise price of $290/oz.…
A: Here, Contract Size of Put Option is 250,000 ounces Exercise Price (K) is $290/oz Option Premium is…
Q: Use the following returns for X and Y. Returns Year Y 1 22.8% 29.4% 17.8 10.8 - 4.8 31.4 2 - 21.6 –…
A: The return of the stock is the amount of money that an investment earns over a period of time. The…
Q: Consider two investments A and B with the sequences of cash flows given in the table below. 12 Click…
A: Given, Two projects A and B Hi There, thanks for posting the question. But as per Q&A…
Q: QUESTION 16 The taxes most relevant for personal financial planning are O a. excise taxes. Ob.…
A: For financial planning, it is relevant for an individual to plan their taxes accordingly to ensure…
Q: You take out a consumer loan at your credit union for new insulated windows for your house. The…
A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…
Q: Stargate Corporation is considering two projects of machinery that perform the same task. The…
A: Net present value is the difference between Present Value of cash Inflows and Initial Investment. A…
Q: You believe that Rose, Inc., the stock is going to fall and you’ve decided to sell 1,300 shares…
A: Given, Number of shares 1300 Current price of share is $58 Initial margin is 60%
Step by step
Solved in 2 steps
- An aunt gifts you with $12,000, but only after you invest it for one year. She givesyou two choices.1. Invest the entire sum at 4.2% compounded monthly.2. Invest $1000 at 7.1% each month in an annuity that pays every month.(a) What is the future value of the money invested with method 1?(b) How much interest is earned with method 1?(c) What is the future value of the money invested with method 2?(d) How much interest is earned with method 2?(e) Which method would you choose?Q3. Mr. X promises Mr. Y to give Rs. 2,00,000/- in cash after 9 years. He has the following two options (a) If Mr. X makes annual payments into a fund after 1 year how much will each have to be if the fund pays 8 %. (b) If Mr. X decides to invest a cumulative amount in the account after 1 year and let it compound annually, then how much will the lump sum? What should Mr. X do? 1Suppose you are offered an investment that will allow you to double your money in 8 years. You have R10 000 to invest. What is the implied rate of interest?Suppose you have a 1-year old daughter and you want to provide R81 000 in 19 years towards her college education. You currently have R2 000 to invest. What interest rate must you earn to have the R81 000 when you need it?Suppose you want to buy a new house. You currently have R15 000 and you figure you need to have a 10% down payment plus an additional 5% of the loan amount in closing costs. If the type of house you want costs about R150 000 and you can earn 8.1% per year, how long will it be before you have enough money for the down payment and closing costs?
- 1.A person buys a piece of lot P300,000 downpayment and 8 deferred quarterly payments of P8,000 each, starting 3 years from now . What is the present value of the investment if the rate is 12% compounded quarterly? 2. Mr Dela Cruz is left with an inheritance from his father. He has an option to receive P2.5 M at the end of 10 years, however he wishes to receive the money at the end of each year for 6 years. If interest rate is 8% how much would he receive every year?Suppose James will have $25,000.00 for a down payment on a house in 6 years. How much would he have to invest today (present value) if his investment earns a nominal rate of 5 ¼ % compounded monthly? b. How much interest did James’s account earn during the 6 years?Q4. You are saving for a new house and you put $10,000 per year in an account paying 8%. The first payment is made today. How much will you have at the end of 3 years? A) S66.326 B) S65.593 C) $63.452 D) S63.359
- V4. Samantha was supposed to make a payment of $4,250 in 2 years and another payment for $1,300 in 5 years to Loon Company as part of a payment plan. Instead, she is trying to reach an agreement with the company where she would pay an upfront amount now, and an amount of $500 in 4 years. Assume that money is worth 8.58% compounded quarterly. a. Calculate the equivalent value of the $4,250 payment and the $1,300 payment today. B. calculate the size of the payment required in 5 years to Steele the amount(b) Aminah plans to buy a house in Shah Alam which the market price is RM450,000. To buy the house, she needs to pay 10 percent down payment and only has 5 years to accumulate that amount of money. Calculate the amount she needs to deposit every year if the account pays 8 percent interest annually.Suppose that your friend has a farm in 2020 and wants to make an investment 150,000 in 2025 for all farm requirements. a) If you can earn 2.5% per year on your investments, how much does he need to invest today to achieve his goal? b) Between 2020 and 2023 how much would he have raised if the interest increased to 4%. c) From question A calculate the future value for year one and year two.
- If you invest P25,000 at 8% interest compounded annually, approximately how much money will be in the account at the end of 10 years? a. P31,000 b. P46,000 c. P54,000 d. P75,000 3. A John wants to surprise his mother with a gift for her birthday, which is five vears away. He 2.Ms. Maya Manaco has P2,500,000 to invest for a year. She can lend it to his brother who has agreed to pay 10% simple interest for the year, or she can invest it with a bank at 8% compounded quarterly for a year. Which of the alternatives will yield a higher interest? By how much? **Jason wants to purchase property for $88,000 cash or he can purchase the property for $30,000 down and 2 equal payments of $30,000 at the end of 1 and 2 years respectively. If money is worth 4% compounded monthly then which is the best plan now? a) How much will Jason save now by choosing the best plan?