s? Money is worth 12% per annum. Tabu
Q: 1. What is the present worth of P 5 000 for 2 years at 12% compounded quarterly?
A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…
Q: At what rate must Rm50,000 to grow to 406,855 IN 15 years compounded annually? Select one: a. 18%…
A: Amount Invested = RM 50,000 Amount gro in 15 years = RM 406,855 Years(n) =15 Interest rate = r% let…
Q: A one-year investment yields a return of 15%. The cash returned from the investment, including…
A: We have the following information: A one-year investment yields a return of 15% The cash returned…
Q: How much must you invest at 12% interest, compounding quarterly, in order to see your investment…
A: The amount of investment can be calculated by discounting the future value using the appropriate…
Q: 10. If money is worth 8% compounded quarterly, what quarterly savings is required in order to have…
A: Quarterly compounding refers to the amount of interest earned on a quarterly basis on an account or…
Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…
A: We have the following information: Annuity: $24,000 Rate of Interest: 5%
Q: How much you have in 3 1/2 years if you invests P8,000 at 6.6 percent interest compounded monthly?
A: We need to calculate the future value of the investment with the following inputs: Present Value =…
Q: How much should be invested now at 6.7% compounded semiannually to have $47,000 in 19 years?
A: The amount required to be invested today is calculated as present value
Q: The present value of Rp100 million in three months is Rp97 million. Compute the simple interest rate…
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at…
Q: 3. When will Php 30,000 earn interest of Php 15,000 if it is invested at the rate of 7.5% compounded…
A: Time value of money concept says that a sum of amount invested today will have more value in future…
Q: What would be the value of P1,000,000 3 years from now if it would be invested at a return of 12%…
A: Compound interest refers to the simply earning interest on interest. The principal is increased by…
Q: The initial cost of an investment is $65,000 and thecost of capital is 10%. The return is $16,000…
A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…
Q: An investment costs sh.150,000 and pays sh. 12,000 in perpetuity. If the interest rate is 9 percent,…
A: The payments flow which continues for indefinite period with equal amount and interval is called…
Q: Approximately, what is the value of PG present worth of arithmetic gradient) if G=170, n=4 years,…
A: The aggregate present worth of the series of the arithmetic gradient is computed using the present…
Q: If $3000 is invested at 6% annual simple interest, how much should be invested at 9% annual simple…
A: Given Information: Interest Rate(R1)=6% Principal Amount(P1) = $3,000 Time Period in both option(T1…
Q: .If you invest $10,000 now into a project that will yield net revenues of $1.327 at the end of each…
A: Internal rate of return (IRR) refers to the discount rate that is associated with an investment's…
Q: At what interest rate must $112,000 be invested so that it will be worth $392,000 in 14 years?
A: We use rate function to calculate interest rate
Q: When will an investment of 4,000.00 double if the effective rate 8% per annum?
A: Solution : given investment P = 4,000 Effective annual rate r = 8% Amount A = 2P We know the…
Q: A businessman expects to receive P20, 000.00 in 10 years. How much is that money worth now…
A: Future value (FV) = P 20,000 Annual interest rate = 6% Quarterly interest rate (R) = 6%/4 = 1.50%…
Q: At what rate compounded annually will P50,000 earn P15,000 in 15 years?
A: Rate of return = (Future value / Present value)^(1/Time) - 1 where, Future value = P50,000 Present…
Q: What is the simple annual rate of return on a $10,000, 3-year investment with cash inflows of $2,000…
A: The simple annual rate of return is calculated by dividing the annual cash flow by the initial…
Q: 4-15 If the opportunity cost rate is 7.5 percent, what is the present value of an investment that…
A: Hi, since there are multiple questions posted, I will answer the first one as per the guidelines.…
Q: What will be the maturity value of P12,000 invested for four (4) years at 15 compounded quarterly?
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: How long will it take for an investment to increase by 139% its amount if money is worth 14% comp.…
A: Given, Amount will be 139% at the end of the period So, Let's assume amount now is 100 amount at…
Q: What will be the Value of 10000$ invested @10% p.a compounded monthly for 25 years?
A: Future value is the worth of a current sum of money after a specified time span, given a fixed…
Q: At what interest rate must $112,000 be inves that it will be worth $392,000 in 14 years?
A: Future value consist of interest and future value of the investment. Money grow with time and…
Q: If u make an investment of $3500 and the investment loses a continuous 5% each year, what will the…
A: Given information: Present value of investment is $3,500 Investment loses a continuous 5% each year…
Q: The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000…
A: Net present value is the difference between the present value of cash flow and initial investment.
Q: An investment of P100,000 is expected to yield a regular annual net income of P25000 for 10 years.…
A: A benefit-cost ratio (BCR) is a ratio used in a cost-benefit analysis to summarize the overall…
Q: How much must be invested today at 6% compounded quarterly to have $8,000 in 5 years? Round your…
A: For the above calculation, we need to use the following formula A = P ( 1 + r / n )^nt Where A…
Q: An investment that cost P20,000 will provide a return of 12% compounded quarterly. For how long will…
A: Investment (PV) = P20,000 Interest rate = 12% Effective annual interest rate (r) = [1+(0.12/12)]12-1…
Q: At what annual interest rate must $232,000 be invested so that it will grow to be $417,000 in 12…
A: Present value = $232000 Future value = $417000 Period = 12 Years
Q: Approximately, what is the value of PG (present worth of arithmetic gradient) if G=185, n=7 years,…
A: gradient = 185 time period = 5 interest rate = 7.5% below is the given formula to calculate present…
Q: An annual growing perpetuity has a present value of $363,636.36 What is the growth rate (g) of this…
A: The time value of money is considered for determining the cash flows compounded and discounted…
Q: Find the present value of KTC share which is expected to earn Rs. 10.50 every six months, if money…
A: Earnings each six month =10.5 Yearly income =2×10. 5=21 interest rate =8% compounding annually…
Q: IS $117,000. If the service life is 8 years, what is the incremental internal rate of return?
A: Information Provided: Initial cost (X) = $200,000 Annual generated income (X) = $49,000 Initial cost…
Q: What will be the maturity value of P16,000 invested for four (4) years at 15% compounded quarterly?
A: Time value It tells that money received by an individual today has more worth than that of receiving…
Q: How much would P180,000 amount to in 20 years if it earns 9% per annum? * P404,000 P704,000 P504,000…
A: Investment amount = P 180,000 Annual interest rate = 9% Period = 20 Years
Q: What will be the maturity value of P12,000 invested for four (4) years at 15% compounded quarterly?
A: Answer: Calculation of the maturity value of P12,000 after 4 years; The maturity value of P12,000…
Q: How much must be invested today at 10 %, compounded semiannually for 25 years, to produce…
A: At specific rate of return, present value (PV) would be the current price of a future amount of…
Q: What single investment made today, earning 10 % annual interest, will be worth 10,000 TL at the end…
A: Given:Annual interest =10%Amount in future =$10000Time period =3 years
Q: What will be the amount of the sum Rs 1200 for one and half year at 40 percent of interest…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: what is the value of a consol which pays RM40 semi-annually when the required rate of return is 10%?
A: Given: Semi annual payment = RM40 Required return = 10%
Q: What are the PW and FW of a 20-year geometric cash-flow progression increasing at 2% per year if the…
A: Present worth is the value of money today as compared to the future time. Present worth states that…
Q: What will be the future worth of money after 1 year, if the sum of P25,000 is invested today at a…
A: Future value of sum can be calculated with the help of future value function.
Q: How much must be invested now at 8% interest in order to have $75,000 in eight years?
A: Future value (FV) is crucial to investors and financial planners because they use it to predict how…
Q: How much must be invested today at 10%, compounded semi-annually for 25 years, to produce P15,000?
A: Present Value refers to the value of cash flows today which is to be received at some future time…
Q: Approximately, what is the value of (F) if P=2200, n=15 years, and i= 15.5% per year?
A: A concept that implies the future worth of the money is lower than its current value due to several…
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- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.The initial cost of a piece of construction equipment is P30,000,000 having a useful life of 10 years. The estimated salvage value of the equipment at the end of the useful life is P450,000. Determine accumulated depreciation at the end of 5th year using Sinking fund method, if interest rate is 8.2 % per year?a) an asset is purchased for $200,000. The estimated life is 8 years and the salvage value is $20.000.assuming the item is depreciated via straight line method, find the book of the asset at the end of 5 years? b) If one-time amount of $500 is invested at an annual interest rate of 8% (compound annually), find its future worth at the end of 20 years?
- A machine, purchased for$50,000, has a depreciable life of five years. It will havean expected salvage value of $4,500 at the end of the depreciable life. Find theyearly depreciation, Book value every year using the following methods: a. MATHESON EQUATION b. SINKING FUND METHOD ( i = 12%)A machine was purchased for 100,000 and has a salvage value of 20,000 what is the total depreciation on the 7th year if the economic life is 10 years? Assume i = 8% Use sinking fund methodAn asset is purchased for $90,000 with the intention of keeping it for 10 years, but is sold at the end of year 3. A total of $30,000 was borrowed money that was to be repaid over three years in equal annual payments, including principal and interest. The depreciation is correct for the appropriate MACRS Recovery Period. MARRAT = 12%. a. What is the MACRS property class of the asset? b. What is the salvage value received at the end of year 3? c. What is the loan interest rate? d. What is the book value at the end of year 3? e. Determine the values of the entries in the empty cells.
- Using the sinking fund method: Prepare a depreciation table for an asset that was bought at P150, 000 and estimated to be useful for a period of 7 years. Estimated salvage value is 10% of its original cost. Money is worth 10% CA. Year Initial Book Value Depreciation Total Depreciation Book Value 1 150, 000 2A machine was bought P100,000 and the scrap value is P15,000 after 30years. Calculate its total depreciation at year 14 with 4% interest rate.Use Sinking Fund MethodAn equipment in a power station costs Ksh.1,560,000 and has a salvage value of Ksh.60,000 at the end of 25 years .Determine the depreciated value of the equipment after 20 yrs using the following methods;(i) Straight line method(ii) Diminishing value method(iii) Sinking fund method at 5% compound interest annually.
