What is the value today of receiving $5,000 at the end of each year for the next two years, assuming an interest rate of 10% compounded annually? ( FV of $1, PV of $1, FVA of $1, and PVA of $1). (Use appropriate factor(s) from the tables provided.)

Q: "ou are considering a loan with an annual rate of 8%. The mortgage is $130,000 with 180 monthly paym...

A: The table above is a loan amortization table. We are given with the monthly payment amount and we ne...

Q: Which of these two companies is best for investment?  Trend Probability Rate of Retrun (Company A) ...

A: We need to calculate expected return rate of return from investment by multiplying the probability w...

Q: 3. You have the opportunity to purchase a bond from a secondary market. The face value of the bond i...

A: Bond price is the present value of all future cash flows from the bond such as coupons and par value...

Q: Suppose you plan to go on a dream vacation for your anniversary in 7 years from today and you plan t...

A: We need to use future value of ordinary annuity formula to calculate monthly payment to reach goal. ...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Depreciation under written down value method  Here, current year annual depreciation is depreciation...

Q: A few years ago, Big Rock invested in a number of bonds with various maturity dates. Several of thes...

A: A bond is a fixed-income instrument that reflects a loan from an investor to a borrower (usually cor...

Q: amount (same buying power) which she currently enjoys. Inflation is expected to remain at 6% pa unti...

A: If you plan properly and on time for retirement than you can retire with good amount of money on ret...

Q: Complete the table:

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts fo...

Q: Internal rate of return % If the required return is 15 percent, should the firm accept the project?

A: IRR is the rate of return at which the NPV of the project becomes zero. If the required return from ...

Q: Imagine that you are importing pasta from Italy and reselling it in the United States. Your largest ...

A: Forward rate agreement helps the buyer of a currency to buy the required currency at a future rate f...

Q: Big Rock has several investment portfolios with a local mutual fund company. One of the company’s di...

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...

Q: What are 'accelerated filers,' and how are they chosen (i.e., based on income, number of employees, ...

A: An issuer qualifies as an accelerated filer if its total global public float is greater than or equa...

Q: Mega lotteries in country X pay out $1 million jackpots in the form of ordinary annuity of $5,000 ov...

A: Ordinary Annuity = $5,000 Time period = 2000 months Lump sum = $600,000  Discount rate = 8% APR

Q: In 2014, ABC has net income of P5,000,000, and it has 2,000,000 shares of common stock outstanding. ...

A: Net Income P 5000000 Common Stock Outstanding 2000000  

Q: you would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $3...

A: Ask rate is market selling  rate. Bid rate is the rate at which market buys.

Q: Hanse, Inc., has the following two mutually exclusive projects available. Project R -$76,500 26,600 ...

A: Cross over rate: Cross over rate is the rate where the Net present value of two projects are equal.

Q: Suppose the capital-gain tax rate is 22%, and the dividend tax rate is 35%. The share price of Kitty...

A: The dividends are to paid by the net income of the company and but there are taxes to be paid on the...

Q: City Bank limited is considering setting up an in-hose fintech lab. How do you think City Bank can t...

A: Before Answering this question we need to know the meaning of In-House fintech In-House fintech This...

Q: In 2007, the median cost of a new home was $235,500 (source. https//www.census gov/const/u emon pdf)...

A: CPI means consumer price index in an economy in an year. This can be defined as the weighted average...

Q: 11 Fun with IRR. Suppose you have just graduated from college and are deciding on a career. Your fou...

A: "Hi, Thanks for the Question. Since you posted multiple sub parts question, we will answer first thr...

Q: During the month of March, direct materials cost totaled PhP850,000 and direct labor cost was 70% of...

A: Material cost = Php 850,000 Labor cost ratio in prime cost = 70% Material cost ration in prime cost ...

Q: Executing an order. Bid price was Php10.00 the price of the stock was Php10.80 9:05am 9.15am -the pr...

A: Solution:- When a limit buy order is placed, the order gets executed only when the market price reac...

Q: An auto insurance company is implementing a new bonus system. In each month, if a policyholder does ...

A: Given Number of Policy Holders = 1000  Low Risk Drivers = 350 High Risk Drivers = 650 

Q: Calculate the average rate of return for each stock during the 5-year period. Do not round intermedi...

A: Average rate of return can be defined as an average percent increase of value of an investment over ...

Q: Which of the following is the amount of cash remaining after a company has covered its operating act...

A: Cash flows are majorly divided into 3 types: - Operating cash flows - Investing cash flows - Financi...

Q: Q2. X Company has the following receivables classified into individually significant and all other r...

A: Impairment in assets is the condition where the market value of the assets is less than the value pr...

Q: If a broker quotes a price of 111.25 for a bond on September 10, what amount will a client pay per $...

A: Solution : Given, Face value = $1,000 Coupon rate = 7%     Accrued interest = Face value * coupon ra...

Q: Match the correct type of bank risk with the appropriate associated statement. 1.The possibility th...

A: Risk is referred as the possibility of the something bad happened. It also involves in an uncertaint...

Q: 9.4 (LG 9.2, 9.3, 9.4) An investment pays $10 000 in five years. a. If inflation is 10 percent per y...

A: Since you have asked a multiple subpart question, we will answer the first three subparts for you. A...

Q: Q8. Composite Portfolio Performance Measures Big Rock has several investment portfolios with a local...

A: Solution:- Treynor measure measures the excess risk per unit of Beta. So, Treynor measure = (Return ...

Q: There is a bank account with a balance of $5,000 and a growth rate of 2.5% per year. How much money ...

A: Here, Initial balance = $5,000 Growth rate = 2.5% per year Time = 5 years To Find: Amount after 5 ye...

Q: The profit was first taxed in the corporate level and then taxed on the personal level. This is a. U...

A: A tax is a mandatory financial charge or other type of levy imposed on a taxpayer by a governmental ...

Q: A fixed-income security pays out a dividend of $5 at the end of each year for 9 years, and a lump su...

A: Annual dividend (D) = $5 Number of annual dividends (n) = 9 Lump sum amount (MV) = $105 Lump sum amo...

Q: Pearson Motors has a target capital structure of 35% debt and 65% common equity, with no preferred s...

A: Solution:- Weighted Average Cost of Capital (WACC) means the average minimum return required by the ...

Q: An $90,000 loan is amortized by payments of $1850 at the end of every six months at a rate of 2% com...

A: Mortgage loan is a type of loan where funds are availed against an asset as collateral to the lender...

Q: What is the finance charge for this month?

A: Finance Charge: The finance charge represents the cost of borrowing or the cost of credit. Hence, i...

Q: e initial

A: The present value refers to the current value of the payments made in the future. The amount which i...

Q: You are trying to decide which of the two automobiles to buy. The first is American-made costs $1428...

A: Data given:: Cost of 1st car            = $14288  (American-made) Mileage of 1st  car     = 27 miles...

Q: You want to buy a house that has a purchase price of $190,000. You plan to make a down payment of 10...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon h...

A: Par Value = $1,000 Coupon Interest Rate = 7% Years to Maturity = 9 Current Value = $1,140

Q: A 20-year annuity was purchased with $180,000 that had accumulated in an RRSP. The annuity provides ...

A: Time Period = 20 Years Interest rate = 5% Present Value = $180,000

Q: future value. A Brazilian broker that is working with a group of Ecuadorian investors is currently i...

A:  Future Value refers to the value of the current asset or investment or of cash flows at a specified...

Q: Discuss the meaning of "the present value of a future amount"? Give the equation for present value? ...

A: Money grow by the time and interest rate and future value of money is more than what today due to in...

Q: R-Kraine Inc. is considering acquiring an existing project (with financial backing from the governme...

A: Given: Particulars Amount Current market price $584,608.56760 Face value $800,000.00000 Cou...

Q: Present Value of an Annuity On January 1, you win $1,600,000 in the state lottery. The $1,600,000 p...

A: Present Value of an Annuity The amount of money you'd have to invest right now to equal the sum of a...

Q: A year ago, the Really Big Growth Fund was being quoted at an NTA of $21.50 and an offer price of $2...

A: The Holding period returns: The returns earned on an asset between the time it was purchased and sol...

Q: Lucy has 14AR, which is 87.5% of her goal. what is her goal

A: Solution:- The gross amount is the total amount of goal. This can be calculated as:- Current value /...

Q: Four years ago, Vulcan Ltd. issued a 20-year $1000 par value bond that pays $40 semi-annual coupon p...

A: Solution:- Bonds are the debts raised by the coupon. Bond holders are paid a fixed coupon periodical...

Q: If you perform a NPV analysis on a perspective investment using a "d" = 15% and:       a. the NP...

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.