If Sherry borrows 4000 SAR now, 3000 Sar 7years from now, and 1500 SAR 8 years from now and earn at rate of 8 % per year compounded Quarterly and semiannually through a company-sponsored saving plan. its investment in 8 years beginning now 1. Draw the cash flow. 2. Compute the future worth compounded Quarterly. 3. Compute the future worth compounded semiannually.

If Sherry borrows 4000 SAR now, 3000 Sar 7years from now, and 1500 SAR 8 years from now and earn at rate of 8 % per year compounded Quarterly and semiannually through a company-sponsored saving plan. its investment in 8 years beginning now 1. Draw the cash flow. 2. Compute the future worth compounded Quarterly. 3. Compute the future worth compounded semiannually.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

See similar textbooks

Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
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
You make an investment into a money market account at time T=0. In year T=5, the value of the money market account will be $5,000. The money market account pays an annual interest of R=6%, and interest is compounded on a quarterly basis. What is the present value of this account?
Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Click the icon to view some finance formulas. c. What is the accumulated value if the money is compounded monthly? $ 16127.15 (Round to the nearest cent as needed.). d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.) ▼ X
If you invest $20,000 at an annual rate of 1% compounded continuously, calculate the final amount you will have in the account after 20 years. A) S16,374.62 B) $24,428.05 C) $97,033.04 D) S147,781.12
Topic: Annuity DueSolve and show the solution. 1. Find the amount and the present value of an annuity due of P125 every quarter for 9 yrs and 6 months, if money is worth 5% converted quarterly. 2. Find the amount and the present value of an annuity due of P212 every month for 5 years and 5 months, if money is worth 12% compounded monthly. 3. An investment of P550 is made at the beginning of each month for 6 years and 10 months. If interest is 6% compounded monthly, how much will the investment be worth at the of the term? 4. An investment of P330 is made at the beginning of each six months for 6 years and 10 months. If the interest is 3 ½ % converted semiannually, how much is the total investment? 5. Molly purchased a car. He paid P70,000 down payment and P1,050 payable at the beginning of each month for 5 ½% years. If money is worth 7% compounded monthly. What is the equivalent cash price of the car? 6. A dining set is bought for P2,400down payment and P150 payable at the beginning of…
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.) $2,100 per quarter for 15 years, if the account earns 4% per year PV = $ Need Help? Read It Watch It
Kindly create the cashflow diagram of the problem below. Determine the present worth and the accumulated amount of an annuity consisting of 6 payments of P120, 000 each, the payment is made at the beginning of each year. Money is worth 15% compounded annually.
Assume you borrow $2000 now at 7% per year for 10 years and must repay the loan in equal yearly payments. Determine the symbols involved and their values.
Find the accumulated value of an investment of $15,000 for 5 years at an interest rate of 1.45% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. i Click the icon to view some finance formulas. a. What is the accumulated value if the money is compounded semiannually? (Round to the nearest cent as needed.) b. What is the accumulated value if the money is compounded quarterly? (Round to the nearest cent as needed.) C. What is the accumulated value if the money is compounded monthly? S (Round to the nearest cent as needed.) d. What is the accumulated value if the money is compounded continuously? S (Round to the nearest cent as needed.)
If (P) dollars are invested at the end of each year in an annuity that bears interest at an annual rate (r), the amount in the account will be (A) dollars after (n) years, where: n = log [Ar / P + 1] / log (1 + r) If $ 5,200 is invested each year in an annuity that earns 9% annual interest, when will the account be worth $ 25,000? Round to the nearest tenth.
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.) $200 per month for 15 years, if the account earns 7% per year and if there is to be $10,000 left in the annuity at the end of the 15 years PV = $ Need Help? Read It Watch It