Certificate A pays $1100 in three months and another $1100 in sx months Certificate B pays $1100 in four months and another $1100 in seven months If the current rate of return required on this type of investment certificate is 4.00%, determine the current value of each of the certificates (Do not round intermediete calculetions and round your finel answers to 2 decimal places.) Valve of certiticate A Valve of certifeate

Certificate A pays $1100 in three months and another $1100 in sx months Certificate B pays $1100 in four months and another $1100 in seven months If the current rate of return required on this type of investment certificate is 4.00%, determine the current value of each of the certificates (Do not round intermediete calculetions and round your finel answers to 2 decimal places.) Valve of certiticate A Valve of certifeate

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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you borrow $5,000 at 15% for 12 months. you and your creditor agree, that you will make TWO equal payments, one at 3 months and one at 7 months. using a focal point places at 12 months. what is the amount of the payment? make sure you rond all intermediate calculations to 5 decimal places, round final answer to the nearest penny
d. How much do you have to invest today and every six months thereafter for the next 10 years if you want to accumulate a total of $400,000, 10 years from today in an investment paying 10% semiannually? Do not answer in image format
Please Help. What is the answer to 37,38 and 39
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SUBJECT: ENGINEERING ECONOMICS (a) Identify the Given and the Unknown or what is being asked in the problem (b)Provide the formula to be used (c)Show the complete solution. The final answer is already provided. You plan to deposit P100 into a savings account at the end of each month for the next 5 years. a.)At 3% compounded monthly, how much will you have accumulated at the end of 5 years? b.)How much difference would it make if the payments were made at the beginning of the month rather than at the end? Answer: a.) F = P6,464.67, b.) F value difference = P196.63
j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Payment $100 $300 $500 Round your answers to the nearest cent. Year 1 2 3 PV of investment: $ FV of investment: $ k. Five banks offer nominal rates of 9% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume 365 days in a year. 1. What effective annual rate does each bank pay? If you deposit $3,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? Round your answers to two decimal places. EAR FV after 1 year FV after 2 years Nominal rate $ $ Payment $ A A B % $ $ $ % B B с % 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? Round your answers to two decimal places. $ % $ $ с C 3. Suppose you don't have the $3,000 but need it at the end of 1 year. You plan to make a series of…
use BA 2 PLUS CALCULATOR TO SOLVE PLEASE
A company manager is faced with an investment proposal of Rp. 100,000,000, - with a period of 4 years and cash inflows every year as follows: Year 1 Rp. 40,000,000 Year 2 Rp. 30,000,000 Year 3 Rp. 30,000,000 Year 4 Rp. 20,000,000 Requested: a. With an interest rate of 12%, with the NPV and PI method, assist the manager in making decisions. Whether the project is accepted or rejected. b. If it is known that the second interest rate is 20% and the cost of capital offered is 17%, calculate the IRR, and make a decision whether to accept or reject the project.
Godo
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