(b) $4,120 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, e.g. 1.25124 andfinal answer to 0 decimal places, e.g. 458,581.)Present value$ Julia Baker died, leaving to her husband Morgan an insurance policy contract that provides that the beneficiary (Morgan) can chooseany one 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)Your answer is correct.(a) $56,290 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 value $GA56290

Time value of money :— According to this concept, value of money in present day is greater than the…

Answered: Julia Baker died, leaving to her…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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(b) Chris Hitchcock is 43 years old today and he wishes to accumulate $512.000 by his 65 th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his 43 th through his 64 th birthdays. What annual deposit must Chris make if the fund will earn 8% interest compounded annually? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Annual deposit eTextbook and Media Save for Later Attempts: unlimited Submit Answer %24
Mark Harris borrowed some money from his friend and promised to repay him $1,250, $1,340, $1,490, $1,560, and $1,560 over the next five years. If the friend normally discounts investment cash flows at 8.0 percent annually, how much did Mark borrow? (Round answer to 2 decimal places)
am. 31.
Subject: accounting
Solve by using the sinking fund or amortization formula. Betty Price purchased a new home for $245,000 with a 10% down payment and the remainder amortized over a 15 year period at 9% interest. (a) What amount (in $) did Betty finance? $ (b) What equal monthly payments (in $) are required to amortize this loan over 15 years? (Round your answer to the nearest cent.) $ (c) What equal monthly payments (in $) are required if Betty decides to take a 20 year loan rather than a 15 year loan? (Round your answer to the nearest cent.) $
Troy will receive $8678 at the end of Year 2. At the end of the following two years, he will receive $8260 and $2665, respectively. What is the future value of these cash flows at the end of Year 6 if the interest rate is 4 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Assume that Karen Williams desires to accumulate $1,000,000 in 15 years using her money market fund balance of $209,004. At what interest rate must Karen’s investment compound annually? (Round answer to 0 decimal places, e.g. 5%.) Interest rate %
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Suppose that Dmitri just won the lottery and must choose between three award options: 1. A lump sum of $40,000,000 received today 2. 15 end-of-year payments of $5,000,000 3. 40 end-of-year payments of $3,600,000 Assume the interest rate is 8.00%, entered as 8 on your financial calculator. Note: Take the absolute value of the present value when answering this question. Using a financial calculator yields a present value for option 2 of approximately and a present value for option 3 of approximately (when the interest rate is 8.00%). Based on this, Dmitri should choose option if he seeks to maximize present value. Now assume the interest rate is 9.00%, entered as 9 on your financial calculator. Note: Take the absolute value of the present value when answering this question. Using the table you just filled out and a financial calculator, yields a present value for option 2 of approximately and a present value for option 3 of approximately v (when the interest rate is 9.00%). Based on…
Solve the following problem using either Table 11-1 or Table 11-2 from your text. When necessary, create new table factors. (Round new table factors to five decimal places, round dollars to the nearest cent and percents to the nearest hundredth of a percent) Omar invests $2,875 at 6% interest, compounded semiannually for 3 years. Calculate the effective interest rate for his investment. (Round to nearest hundredth percent.) 5.91% O 6.00% O 6.09% O6.18%
A couple is planning to finance its three-year-old son's university education. Money can be deposited at 9% compounded quarterly. What quarterly deposit must be made from the son's 3rd birthday to his 18th birthday to provide $10000 on each birthday from the 18th to the 21st? (Note that the first deposit is made three months after the 3rd birthday and the last deposit is made on the date of the first withdrawal.) (keep 2 decimal places) Answer:

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