3. Able invested $5,000 in a fund for 45 years This fund gives an annual return on 7 percent per year for first 20 years and then earns 9% for remaining time. How much will this fund grow to at the end of the 45 years?
Q: Moerdyk Company's stock has a beta of 1.5, the risk - free rate (rRFR) is 4%, and the market risk…
A: The objective of the question is to calculate the required rate of return for Moerdyk Company's…
Q: Question 9 A borrower takes out a 15-year mortgage loan for $100,000 with an interest rate of 7%…
A: Compound = n = Monthly = 12Interest rate = r = 7% + 0.03% = 7.03%
Q: 88) Kathy is buying her first home. She is financing a total of $185,000 at an APR of 5% for 25…
A: "Since you have asked multiple questions, the first question was answered for you. If you want the…
Q: A brand has bonds on the market with 19 years to maturity, a YTM of 11.0 percent, a par value of…
A: Compound = Semiannually = 2Time = t = 19 * 2 = 38Yield to Maturity = YTM = r = 11 / 2 = 5.5%Face…
Q: The Timing Problem - I Project A Project B $10,000 $1,000 $1,000 + 1 0 -$10,000 $1,000 0 -$10,000 +…
A: Net present value (NPV) is the difference between the current value of cash and the future worth of…
Q: In 2012 the maximum Social Security deposit by an individual was $8,386.75. Suppose you are 27 and…
A: Payment = p = $8386.75Interest Rate = r = 2%Time = t = 65 - 27 = 38
Q: 69. Claim against assets are represented by A. saved earning B. retained earnings C. maintained…
A: Retained earnings are the cumulative amount of net income that a company has retained or reinvested…
Q: Soto Industries Inc. is an athletic footware company that began operations on January 1, 20Y3. The…
A: The question is based on the concept of Financial Accounting.Journal entry is an art of recording…
Q: Casa Loma Group is making an investment in a commercial investment property, featuring a leasable…
A:
Q: If the rate of interest (r) is 9%, then you should be indifferent about receiving $9,500 in one year…
A: The objective of the question is to find out the present value of $9,500 that will be received in…
Q: If you were a financial manager at a company and needed to make a choice of how you would finance…
A: Loans are debt issued by lender institution that carry interest on loan paid paid by monthly…
Q: Harry Styles has the choice between investing in a City of San Diego bond at 3.00 percent or…
A: Bonds are debt instruments issued by companies. The issuing company pays periodic coupons or…
Q: You plan to retire in 30 years and plan on saving $15,000 annually, starting next year, for the next…
A: In a fixed annuity, the periodic payments are predetermined and remain constant throughout the life…
Q: Chutes & Co. has interest expense of $1.05 million and an operating margin of 11.9% on total sales…
A: Interest rate ratio (ICR) is a financial measure of a company's ability to meet interest payments on…
Q: What kind of interest rate swap would a commercial bank with a negative re - pricing gap (that is,…
A: We have to find out an appropriate kind of interest rate swap for a commercial bank with a negative…
Q: Q5 a) Show the cash flows for the following four bonds, each of which has a par value of $1,000 and…
A: YTM is also known as Yield to maturity. It is a capital budgeting technique which helps in decision…
Q: Inflation Adjustments The Rodriguez Company is considering an average-risk investment in a mineral…
A: Introduction to the NPVNet present value is the capital budgeting techniques for decision making…
Q: You are now 35 years old and will retire at the age of 65. While you currently have no savings, you…
A: Future value refers to the projected value of a sum of money at a specified future date, assuming a…
Q: An investment of $11,550 is deposited for 3 years at 2.2% compounded monthly. At this point, the…
A: Deposit=$115503 years , interest rate is 2.2% compounding monthly5 years, interest rate is 1.95%…
Q: Your car dealer is willing to lease you a new car for $399 a month for 48 months. Payments are due…
A: The monthly payment is $399.The period of the lease i 48 months.The cost of money is 3%.
Q: Mike is considering quitting his job to start a bakery, his dream work. To do so, he would need to…
A: Initial investment = $80,000Incremental cash flow = $20,000Discount rate = 15%Useful life = 5 years
Q: A price level adjusted mortgage ( PLAM) is made with the following terms: Amount = $ 96, 800 Initial…
A: The objective of the question is to calculate the payments at the beginning of each year, the loan…
Q: The $45 million lottery prize that you have just won actually pays out $4.5 million a year for 20…
A: The topic is related to financial mathematics, more precisely to the process of calculating a cash…
Q: I was working on the Pacific 13 A questions nad I am stuck at trying to figure out how the expected…
A: The expected value in finance is a concept that calculates the probability-weighted average of…
Q: Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project:…
A: GivenUnit sales = 90000Unit price = $1220Unit variable = $380Fixed cost (million) = $3.75
Q: Consider the following information on three stocks: State of Economy Boom Normal Bust Probability of…
A: Weight of stock A = 35%Weight of stock B = 35%Weight of stock C = 30%T-bill rate = 4.50%Inflation…
Q: What is the price of the bond that has a coupon rate of 5.6%, a yield to maturity of 6.3%, a face…
A: A bond is a financial instrument that represents an obligation owed to an investor, usually a…
Q: How many years will it take Rexchem, Inc., to accumulate $725,000 for a chemical feeder, if the…
A: Solution:-When an equal amount is deposited each period at end of period, it is called ordinary…
Q: a) You deposit $200 monthly into an annuity with the goal of accumulating $180,000 after 30 years.…
A: The annual rate is the growth rate linked to an investment, loan, or savings. It captures the…
Q: An investor has $1000 initial wealth for another $500 at the risk free rate. He then invest the…
A: Borrowings are the negative wealth.The portfolio consists of $1500 investment in market portfolio…
Q: calculate the present value (in $) of the ordinary annuity. (Round your answer to the nearest cent.)…
A: An annuity refers to a series of periodic payments provided/received in exchange for a lump sum…
Q: Suppose the Omega Graphics Company wishes to set aside an equal, annual, end-of-year amount in a…
A: Future Value required in 6 years is $5,000,000Calculating the Annual Deposit to be made each year…
Q: You must evaluate the purchase of a proposed spectrometer for the R&D department. The base price is…
A: NPV stands for Net Present Value, which is a fundamental concept in finance and investment analysis.…
Q: Find the value of the annuity at the end of the indicated number of years. Assume that the interest…
A: Amount of deposit = 250Interest rate= 3%Time =20 yearsTo find: The value of the annuity at the end…
Q: How many years will it take for $20,000 to grow to $250,000, given a 12% compound growth rate?
A: The objective of this question is to find out the number of years it will take for an initial…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: The objective of the question is to calculate the standard deviation of the portfolio and the…
Q: Q5 a) Show the cash flows for the following four bonds, each of which has a par value of $1,000 and…
A: YTM is also known as Yield to maturity. It is a capital budgeting technique which helps in decision…
Q: The expected real interest rate approximately equals Select one: O A. the yield to maturity on a…
A: In interest rate there is one component related to inflation and the other part is related to the…
Q: 4-30. Last week Evelyn moved into the new house she purchased, and she is already making plans to…
A: Loan installment is that which is paid by borrower to lender for a specified period of time. This…
Q: A 30-year fully amortizing mortgage loan was made 10 years ago for $75,000 at 6 percent interest.…
A: A debt is a source of capital that is borrowed by institutions at a predetermined rate of interest,…
Q: Savings for a Down Payment: You plan to buy a house in 5 years and need a down payment of $40,000.…
A: ValuesWorkings
Q: Individual A owns shares of a Canadian-controlled private corporation. All of the corporation's past…
A: In this scenario, Individual A will realize a capital gain on the redemption of their shares.…
Q: QUESTION:How do investors make decision to invest into a portfolio which is the combination of 2…
A: The correlation coefficient shows relationship between the 2 variables.
Q: Problem 3-1 Liquidity Ratios (LG3-1) You are evaluating the balance sheet for SophieLex's…
A: Cash and marketable securities = $340,000Account receivable = $1,300,000Inventory =…
Q: How is the housing expense ratio calculated? The monthly PITI payment is divided by the borrower's…
A: The correct option to calculate the housing expense ratio is:Option 2) The monthly PITI payment is…
Q: Calculate values for u, d, and p when a six-month time step is used. What is the value a 12-month…
A: An option is an agreement between two parties granting one the opportunity to buy or sell a security…
Q: adjustments. What is the duration estimated price change (in dollars,$) when the announcement is…
A: A bond's price is determined by the bond's future cash flows, which include periodic interest…
Q: P3 Operating cash flows. Strong Tool Partners has been considering purchasing a new lathe to replace…
A: (1) Operating Cash Inflows associated with New lathe:(2) Operating Cash Inflows associated with Old…
Q: A loan officer is preparing the documents for a commercial term loan. The borrower's risk profile…
A: APR is the annual percentage rate. EAR is the annual effective rate. APR is the nominal rate or the…
Q: You and 11 coworkers just won $1616 million ($1 comma 333 comma 333.331,333,333.33 each) from the…
A: The objective of the question is to calculate the present value of the lottery winnings if the…
Step by step
Solved in 3 steps
- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?An endowment fund is set up today. It provides payments of $1500 a year for 6- years (first payment one year from now) followed by $2000 a year thereafter forever. If the interest rate is j1 = 6%, how much is needed to be deposited (invested) today? (Answer to nearest dollarWhat amount should you invest quarterly for 30 years in a fund that earns 8% compounded quarterly, to be able to accumulate P5,000,000 when you retire in 30 years?
- find the future value of 5,000 invested in each of the following situation 5 percent for ten years? what about 7 percent for 7 years ? and what about 9 percent for 4 years ?If 1000 pesos was deposited in a fund at the beginning of each 3 months for 10 years and money is invested at 6% compounded quarterly, how much is in the fund at the end of 10 years?You have invested $48, 800 in an investment fund. What amount can you withdraw from this fund in 10 years? The fund is offering an annual interest rate of 9.1%.
- 2. What sum should be invested at the beginning of each quarter, at 16% compounded quarterly in order to have P25, 000.00 in a fund in 10 years.5. If you invest $12,000 today, how much will you have: In 6 years at 7 percent? In 15 years at 12 percent? C. In 25 years at 10 percent? d. In 25 years at 10 percent (compounded semiannually)? a. b.Current Attempt in Progress Pearl Medavoy will invest $7.680 a year for 20 years in a fund that will earn 4% annual interest. Click here to view factor tables If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year-end, what amount will be in the fund in 20 years? (Round factor volues to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458.581.) First payment today S First payment at year-endi $ Save For Later Attempts: 0 of 1 used Submit Answer
- Using Table 1-1 onpage 19, calculate the following:(a) The future value of lump-sum investment of $4,000 in four years thatearns 5 percent.(b) The future value of $1,500 saved each year forthree years that earns 6 percent.(c) A person who invests $1,200 each year finds onechoice that is expected to pay 3 percent per yearand another choice that may pay 4 percent. Whatis the difference in return if the investment is madefor four years?(d) The amount a person would need to deposit todaywith a 5 percent interest rate to have $2,000 inthree years.Current Attempt in Progress * Your answer is incorrect. Carla Medavoy will invest $9,600 a year for 20 years in a fund that will earn 5% annual interest. Click here to view factor tables. If the first payment into the fund occurs today, what amount will be in the fund in 20 years? If the first payment occurs at year- end, what amount will be in the fund in 20 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, eg. 458,581.) First payment today First payment at year-end $ 509433.1594 485174.4375If a donation of $100,000 is expected to pay out scholarships of $10,000 every year and the funds earn 7.5% compounded annually, how long will it be before the first annual payment can be made?