Samantha has holdings of 250 troy ounces of platinum, currently valued at $825 dollars per ounce. She estimates that the price of platinum will rise to $858 per ounce in the next year. If the interest rate is 8%, should she sell the platinum today?O A. Yes, as the difference between the present value of selling now and selling in one year is $6,600 dollars today.OB. Yes, as the difference between the present value of selling now and selling in one year is $7,639 dollars today.O C. Yes, as the difference between the present value of selling now and selling in one year is $8,250 dollars today.O D. No, as the difference between the present value of selling now and selling in one year is - $6,111 dollars today.C

In short selling the one does not hold assets but sell to buy later and this is virtual selling and…

Answered: Samantha has holdings of 250 troy…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 11E

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Samantha has holdings of 250 troy ounces of platinum, currently valued at $820 dollars per ounce. She estimates that the price of platinum will rise to $844.60 per ounce in the next year. If the interest rate is 6%, should she sell the platinum today? O A. Yes, as the difference between selling now and selling in one year is $5,802 dollars today. B. Yes, as the difference between selling now and selling in one year is $4,920 dollars today. C. Yes, as the difference between selling now and selling in one year is $6,150 dollars today. D. No, as the difference between selling now and selling in one year is - $4,642 dollars today.
Samantha has holdings of 250 troy ounces of platinum, currently valued at $815 dollars per ounce. She estimates that the price of platinum will rise to $850 per ounce in the next year. If the interest rate is 8%, should she sell the platinum today?
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Long time ago Lisa had put an amount of $50,000 into an investment in the securities market. Now she has $150,000 in her investment account. Required: a) If the average rate of return Lisa earned for the investment is 7.6% per year, how many years she has maintained the investment so far? b) If the Lisa would have wished to obtain the target of $150,000 within 10 years only, how much money should she put into the initial investment given the same rate of return is applied? c) Assume that Lisa would like to put the amount of $150,000 into another investment and aims for a new saving target of $500,000 to buy a new house in 12 years. How much is the rate of return should Lisa aim for to get her $500,000 after 12 year? d) Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a mortgage from a bank to buy the new house. ANZ bank offered Lisa the lending interest rate of 4.85% per year, compounding semi-annually. Commonwealth Bank offered…
A long time ago Lisa had put an amount of $50,000 into an investment in the securities market. Now she has $150,000 in her investment account. Required: If the average rate of return Lisa earned for the investment is 7.6% per year, how many years she has maintained the investment so far? If Lisa would have wished to obtain the target of $150,000 within 10 years only, how much money should she put into the initial investment given the same rate of return is applied? Assume that Lisa would like to put the amount of $150,000 into another investment and aims for a new saving target of $500,000 to buy a new house in 12 years. How much is the rate of return should Lisa aim for to get her $500,000 after 12 years? Lisa has another option for her plan to buy a new house: Using $150,000 as a deposit and get a mortgage from a bank to buy the new house. ANZ bank offered Lisa the lending interest rate of 4.85% per year, compounding semi-annually. Commonwealth Bank offered her a lending rate of…
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You have just received a windfall from an investment you made in a friend's business. She will be paying you $ 45236 at the end of this year, $ 90472 at the end of next year, and $ 135708 at the end of the year after that (three years from today). The interest rate is 3.1 % per year. a. What is the present value of your windfall? b. What is the future value of your windfall in three years (on the date of the last payment)?
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