Your hard work in college paid off, quite literally, and you received a graduate assistantship for yourMBA program. The assistantship pays a stipend of $10,000 at the end of each of the next 2 years. Usingan average discount rate of 3%, the future value of your assistantship can be calculated byCPV $10,000 (Annuity PV factor, i = 3%, n = 2).O PV $10,000 × 3% × 2.O PV $10,000 (Annuity FV factor, i = 3%, n = 2).OPV $10,000 (PV factor, i = 3%, n = 2).

Future Value-Future value (FV) is the value of a current asset at a future date based on an assumed…

Answered: Your hard work in college paid off,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Instruction: Please calculate the correct amount and show your computation. 1. The future value of P2,500 received today and deposited at 6 percent for five years is 2. The present value of P50,000 to be received 10 years from now, assuming an opportunity cost of 9 percent is, 3. If you expect to retire in 30 years, are currently comfortable living on P 100,000 per year and expect inflation to average 3 percent over the next 30 years, what amount of annual income will you need to live at the same comfort level in 30 years? 4. The future value of a P20,000 annuity due deposited at 8 percent compounded annually for each of the next 10 years is 5. The future value of an ordinary annuity of P1,750 each year for 10 years, deposited at 5 percent is 6. How much is the present value of your investment if you invest P2,000 semi-annually at the start of every six months for a period of 4 years with interest rate of 21 percent per annum? 7. Calculate the present value of your deposits in a…
Your rich aunt has promised to give you $2,000 per year at the end of each of the next four years to help you pay for college. Using a discount rate of 12%, the present value of the gift can be stated as PV = $2,000 (PV factor, = 4%, n = 12). PV = $2,000 (Annuity PV factor, i= 12%, n = 4). PV = $2,000 (Annuity FV factor, i = 12%, n = 4). PV = $2,000 × 12% × 4.
Your rich aunt has promised to give you $2,000 per year at the end of each of the next four years to help you pay for college. Using a discount rate of 12%, the present value of the gift can be stated as a. PV = $2,000 (PV factor,i= 4%,n= 12). b. PV = $2,000 (Annuity PV factor,i= 12%,n= 4). c. PV = $2,000 (Annuity FV factor,i= 12%,n= 4). d. PV = $2,000 × 12% × 4.
You purchase an annuity that will pay you $100 every three months for five years. The first $100 payment will be made as soon as you purchases the investment. If your required rate of return is 9% , how much should you be willing to pay for this investment? Group of answer choices $1,596.82 $1,632.29 $1,759.34 $1,510.46
Find the present value PV of the annuity account necessary to fund the withdrawal given. (Assume end-of-period withdrawals and compounding at the same intervals as withdrawals. Round your answer to the nearest cent.) $3,000 per month for 15 years, if the account earns 7% per year PV = $ Need Help? Read I Watch It
Answer the following question correctly refer to the given problem below and show your Complete Solution (Given, Required, Equation, Solution, Answer). Mr. Quiton loans an amount of Php 30,000.00 which is to be paid monthly for 5 years that will start at the end of 4 years , if converted monthly at 12%, how much is the monthly payment ? 1. What is the type of annuity illustrated in the given problem? A. Simple Annuity B. General Annuity C. Deferred Annuity D. Complex Annuity 2. Compute for the interest rate per period. A. 0.01 B. 0.05 C. 0.10 D. 0.12 3. Determine the present value of the loan. A. Php 12,000.00 B. Php 30,000.00 C. Php 60,000.00 D. Php 75,000.00
You have been awarded a Pinder Foundation scholarship to help cover your living costs while studying at the University of Melbourne. The scholarship offers a regular payment of $1,000 per month for four years with the first payment occurring in one and a half months’ time. If the relevant discount rate is 6% p.a. compounding monthly, the present value of the scholarship today is closest to: Group of answer choices a) $42,474 b) $31,330 c) $42,580 d) Need more information to answer the question e) $32,789
A new investment opportunity for you is an annuity that pays $650 at the beginning of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? Select the correct answer. a. $1,903.81 b. $1,885.91 c. $1,850.11 d. $1,832.21 e. $1,868.01
You have been awarded a Pinder Foundation scholarship to help cover your living costs while studying at the University of Melbourne. The scholarship offers a regular payment of $1,000 per month for three years with the first payment occurring in one and a half months’ time. If the relevant discount rate is 9% p.a. compounding monthly, the present value of the scholarship today is closest to: Group of answer choices A. $32,789 B. $31,446 C. $31,330 D. Need more information to answer the question E. $42,474 I already calculated it and I got C ($31,330), is it true? I want to match it with my formula and the steps to solve it.
Direction : Read , analyze , and solve the following worded problem involving annuities . Show your complete solutions. I already provided the answer I just need the SOLUTION. Your mother's savings may allow you to withdraw 50 000, 00 Php semi - annually for 5 years starting at the end of 5 years. How much is your mother's savings if the interest rate 8% converted semi annually ? Answer: Your mother's savings is amounting to 284 930.09 Php
You have a chance to buy an annuity that pays $25,000 at the beginning of each year for 10 years. You could earn 8.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $346,484.41 O $177,976.57 O $164,033.70
At a discount rate of 6.00%, find the present value of a perpetual payment of $ 1,000 per year. If the discount rate were lowered to 3.00%, half the initial rate, what would be the value of the perpetuity? Question content area bottom Part 1 a. If the discount rate were 6.00%, the present value of the perpetuity is $ enter your response here . (Round to the nearest cent.)

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