Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be replaced by a single equivalent amount paid at the focal date of 27 months from today. Money earns 9.6% compounded annually. Using P/Y=C/Y-1 and PMT-0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $730 due today to the focal date: N= A PV= Moving $945 due in 3 months to the focal date: N= A PV= Moving $935 due in 6 months to the focal date: N= A PV = N FV- AFV= AFV =

Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be replaced by a single equivalent amount paid at the focal date of 27 months from today. Money earns 9.6% compounded annually. Using P/Y=C/Y-1 and PMT-0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $730 due today to the focal date: N= A PV= Moving $945 due in 3 months to the focal date: N= A PV= Moving $935 due in 6 months to the focal date: N= A PV = N FV- AFV= AFV =

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Scheduled payments of $890 due today, $525 due in 15 months, and $555 due in 33 months are to be replaced by a single equivalent amount paid at the focal date of 6 months from today. Money earns 11.1% compounded quarterly. Using P/Y=C/Y=4 and PMT=0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $890 due today to the focal date: A PV = N= A FV= Moving $525 due in 15 months to the focal date: N = A/ PV = Moving $555 due in 33 months to the focal date: N = A/ PV = The single amount at the focal date is = A FV= A FV = A/ A A/
Using either logarithms or a graphing calculator, find the time required for the initial amount to be at least equal to the final amount. $6900, deposited at 8.6% compounded monthly, to reach at least $10,000 The time required is year(s) and [ months. ***
Three payments are scheduled as follows: $1,500 is due today, $1,200 is due in five months, and $2,100 is due in eight months. The three payments are to be replaced by a single equivalent payment due ten months from now. What should the payment be if money is worth 6.5%? Use ten months from now as the focal date. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment $
Three payments are scheduled as follows: $1,500 is due today, $1,200 is due in five months, and $2,100 is due in eight months. The three payments are to be replaced by a single equivalent payment due ten months from now. What should the payment be if money is worth 6.5%? Use ten months from now as the focal date. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Payment LA
A payment of $3,530 is due in 45 days and another payment of $4,790 is due in 280 days. Calculate the single equivalent payment to be made in 80 days to settle the two payments if money earns 6.05% p.a. (Hint: use 80 days from now as the focal date.) $
A $23,970 loan is to be settled by making payments of $6,999 at the end of every six months. The interest is 7.58% compounded monthly. a) Find the number of payments in the term. N = b) Fill in the missing values of the amortization schedule below. Round off your answers to two decimal places. Enter a positive value for all answers. Payment Number 0 1 2 3 4 Payment Amount ($) PMT FA A A A Interest Portion ($) INT FA A $ Principal Portion ($) PRN $ A $ Loan Balance ($) BAL A A $23,970
A payment stream consisting of $1807 due (but not paid) 9 months ago, and $4042 due in 8 months is to be replaced with the following equivalent set of payments: an unknown payment due today, and a payment of $1727 due in 17 months. What is the amount of the payment due today if the rate of simple interest is 4.28% ? Give your answer rounded to the nearest cent and use today as the focal date.
For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. 5. Present Value Future Value 80,000 94,000 50,000 200,000 $ $ $ $ $ 31,841 $ 15,762 $ 84,482 $ 13,291 i 7% 8% 9% n 9 16 10 15 1
Payments of $3,700, due 70 days ago, and $4,200, due in 60 days, are to be replaced by payments of $4,100 due today and the balance due in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.80%. Use 30 days from now as the focal date. (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places.)
For each of the following situations involving annuities, solve for the unknown. Assume that interest is compounded annually and that all annuity amounts are received at the end of each period. (/= interest rate, and n= number of years) Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) 1. $ 2 3 4. 15 Present Value Answer is complete but not entirely correct. Annuity Amount 2.200 145,000 190,000 72.523 45,787 8,784 558,865 480,945 520,000 240,000 8% 1.0% 9% 2.5% 10% n= 5 4 30 8 4
Payment of $942 due 1 months ago and $439 due today are to be repaid by a payment of $400 one month from today and the balance in 9 months from now. If money is worth 4% compounded monthly, and the agreed focal date is 9 months from today. What is the size of the final payment? Please express your answer to the nearest dollar. Sample input: 2456 for $2456.
We can now use the following formula to find the present value of the account where the annuity payments are $400 each month. present value = table factor ✕ annuity payment The table factor was determined to be 21.67568. Before using the above formula, we must add 1 to the table factor since this is an annuity due. Thus, the table factor to use in the formula is 21.67568 + 1 = . Substitute the values into the formula, rounding the result to the nearest cent. present value = table factor ✕ annuity payment = ✕ 400 = $ Therefore, to receive annuity payments of $400 at the beginning of each month for 2 years, the amount that should be deposited now into an account earning 6% interest compounded monthly, to the nearest cent, is $ .

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