a. At an effective rate of interest of 8% per annum, the present value of P 100,000 due in x is P65,322. Determine x. b. What deposit made today will provide for a payment of P 1,000 in 1 year and P 2,000 in 3 y if the effective rate of interest is 7.5%? Total PV-PV of 1,000 at time 1+PV of 2,000 at tim c. Ian will receive P 50,000 at the end of each year for the next 4 years. Using an effective am

a. At an effective rate of interest of 8% per annum, the present value of P 100,000 due in x is P65,322. Determine x. b. What deposit made today will provide for a payment of P 1,000 in 1 year and P 2,000 in 3 y if the effective rate of interest is 7.5%? Total PV-PV of 1,000 at time 1+PV of 2,000 at tim c. Ian will receive P 50,000 at the end of each year for the next 4 years. Using an effective am

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 13E

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D. At a certain interest rate the present values of the following two payment patterns are equal: (i) P 200,000 at the end of 5 years plus P 500,000 at the end of 10 years; (ii) P 400,940 at the end of 5 years. At the same interest rate P 100,000 invested now plus P 120,000 invested at the end of 5 years will accumulate to X at the end of 10 years. Calculate X.
The present worth of a deposit of $1000 now and $1000 every 6 months for 10 years at an interest rate of 10% per year, compounded semiannually is represented by which of the following equations: Select one: а. P = 1000(P/A,5%,21)(F/P,5%,1) b. P = 1000 (P/A,5%,20) O .P = 1000 (P/A,5%,21) d. P = 1000 + 1000(P/A,10.25%,10)
1. Future Value For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today and held until the end of the deposit period if the interest is compounded annually at the rate specified. Part Single CF Interest Rate Deposit Period (Years) PV I/Y N A $900 3% B $1200 6% C $16,000 9% D $40,000 10% 6 8 12 15
Assume you make a deposit of $7,500 now into a saving account that pays 12% per year, compounded quarterly. If you want to know the total amount after 2 years, the value of interest rate (i) you should use in the F/P factor is: Select one: а. 3% b. 4 % с. 24% d. 12 %
Classify the financial problem. Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in 6 years? A.future valueB.amortization C.sinking fundD.present valueE.ordinary annuity Answer the question. (Round your answer to the nearest cent.)
Consider the following cases: Amount of Compounding Initial Stated Annual Frequency, m Deposit Case Deposit ($) Rate, r (%) (times/year) Period (years) A 2,500 6 2 5 B 50,000 12 6 3 C 1,000 5 1 10 D 20,000 16 4 6 a. Calculate the future value at the end of the specified deposit period.
Use aspreadsheet to create amortization schedules for the following five scenarios.What happens to the total interest paid under each scenario?a. Scenario 1:Loan amount: $1 millionAnnual rate: 5 percentTerm: 360 monthsPrepayment: $0b. Scenario 2: Same as 1, except annual rate is7 percentc. Scenario 3: Same as 1, except term is 180monthsd. Scenario 4: Same as 1, except prepayment is$250 per monthe. Scenario 5: Same as 1, except loan amount is$125,000
Solve all three subparts early.
(a) Given the effective rate of interest as 7.5%, calculate the present value which will provide the payment of RM1,000 in 1 year and RM2,000 in 3 years.
What is the future value of GH¢ 1,200 a year for 40 years at 8 percent interest? Assume annual compounding. #randomized O A. GH¢ 301,115 B. GH¢ 306,492 O C. GH¢ 310,868 OD. GH¢ 342,908 O E. GH¢ 347,267
Suppose you deposit $4,000 at the end of each quarter for five years at an interest rate of 8% compounded monthly. Which of the formulas given next will determine the equal annual end-of-year deposit amount that would accumulate the same balance over five years, under the same interest compounding, as the $4,000 deposited quarterly?(a) A= ($4,000 (FIA, 2.01%,20)] x (AIF, 8%, 5).(b)A = $4,000 (FIA, 9%, 5).(c) A= $4,000 (FIA, 9%, 20) x (AIF, 9%, 5).(d) None of the above.
For the follwing case, determine the number of years it wll take for the intitial deposit to grow to equal the future amount the given interest rate. Initial Deposit Future Amount Interest Rate $9,998 $18,400 17%