(d) $4,170 every 3 months for 3 years and $1,410 each quarter for the following 25 quarters, all payments payable at the end ofeach quarter. (Round factor values to 5 decimal places, eg. 1.25124 and final answer to O decimal places, e.g. 458,581.)Present value $eTextbook and MediaWhich option would you recommend that Leon exercise?Option (b)Option (d)Option (a)Option (c)d Media Julia Baker died, leaving to her husband Leon an insurance policy contract that provides that the beneficiary (Leon) can choose anyone of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if:Click here to view factor tables(a) $57,000 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g.458,581.)Present valuee Textbook and Mediak(b) $4,170 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, e.g. 1.25124and final answer to 0 decimal places, eg. 458,581.)Present value $e Textbook and Media(c) $19,220 immediate cash and $1,922 every 3 months for 10 years, payable at the beginning of each 3-month period. (Roundfactor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, eg. 458,581)Present value

Note: As per our guidelines, only the first three subparts will be answered.An estimate of the…

Answered: Julia Baker died, leaving to her…

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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Rita Gonzales won the $41 million lottery. She is to receive $1.5 million a year for the next 19 years plus an additional lump sum payment of $12.5 million after 19 years. The discount rate is 14 percent. What is the current value of her winnings? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Adrian pays #848719 cash and the balance in 44 quarterly payments of $34211 for a house and lot. If money is worth 4% converted quarterly, what is the cash value of the house and lot? Round your answer to 2 decimal places.
Lee Wills loaned Audrey Chin $16,000 to open Snip Its Hair Salon. After 6 years, Audrey will repay Lee with 8% Interest compounded quarterly. How much will Lee receive at the end of 6 years? (Use the Table provided.) Note: Note: Do not round Intermediate calculations. Round your answer to the nearest cent. Saved Future value K
Jane Bauer has won the lottery and has the following four options for receiving her winnings: Receive $100,000 at the beginning of the current year Receive $108,000 at the end of the year Receive $20,000 at the end of each year for eight years Receive $10,000 at the end of each year for 30 years Jane can invest her winnings at an interest rate of 8% compounded annually at a major bank. Use the appropriate present or future value table: FV of $1, PV of $1, FV of Annuity of $1 and PV of Annuity of $1 Calculate the Present value for each of the above options. Round all answers to the nearest dollar. Present Value Option 1 $fill in the blank 1 Option 2 $fill in the blank 2 Option 3 $fill in the blank 3 Option 4 $fill in the blank 4 Which of the payment options should Jane choose?
Mrs. Lim's purchase contract for a house and lot specifies that she will pay $500,000 cash and $45,000 at the end of each month for 10 years at the interest rate of 17% converted monthly. What is the cash value of the house and lot? Round off answer to the nearest peso.
A widow currently has a $84,000 investment that yields 6 percent annually. Can she withdraw $21,000 for the next five years? Use Appendix D to answer the question. Round your answer to the nearest dollar.The maximum amount that can be withdrawn is $ so she -Select-cancannotItem 2 withdraw $21,000 for the next five years.
Rosina plans on aving$2,225a ycar and expects to carn a rate of8.37%compounded quarterly. How much will she have in her account at the chd of 43 years? • 1.53,639,983approx. • 2.5881,927approx. •3.5816,159 approx. •4.578,392 approx. •5.570,537 approx.
Rex Corporation accepted a $7,000, 4%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 5%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Maturity value b. What is the discount period? Discount period days c. What is the bank discount? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Bank discount C
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A family takes a $275,000 20 year mortage at 3.50% annually compounded monthly. a. Compute their monthly payments. o. Immediately after the 121st payment, this family receives a $55,000 from an inheritance. They decide to put this entire amount against the amount they owe. Given that the bank expects them to maintain the same monthly payments as in 4a, compute the length of time (months) it will take to pay the laon off. The same family above realizes that the inheritance income will not materialize (so they are back to 4a). Instead, immediately after their 121st payment they decide to re- fianance at the lower rate of 15% per year compounded monthly. They decide to stick with the same number of remaing monthly payments. What will be their new monthly payment? please draw the cash flow diagrams, and show all calculations!!!!
Subject: accounting
Lauren deposited $10,000 today. He plans to withdraw $1100 every year. For how long can she withdraw from the account starting 1 year from now if interest is 89% compounded annually? State your answor in years and months (trom 0 to 11 months) This is an example of OA Compound Interest Problem (PMT-0) OB. Payout Annuity Problem (FV0) OC. Savings Annuity Problem (PV= 0) The TVM variable being solved is OA PMY OB. n Use your TVM solver to answer the following questions (a) It will take years to depelete the account Round UP to the nearest whole period (b) She can make withdrawals for year(s) and month(s) Answers should be whole numbers with months is between 0 and 11 CHES O.C. FV OD. PV

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