Music producer, will receive royalties over a period of 3 years for the theme song she made for a TV program. The amount will be received at the end of each year as follows. Amount End of Year 1 R50 000 End of Year 2 R30 000 End of Year 3 R10 000 Find the present value (at the beginning of the first year) of all future royalties at a compound interest rate of 8% pa.

Music producer, will receive royalties over a period of 3 years for the theme song she made for a TV program. The amount will be received at the end of each year as follows. Amount End of Year 1 R50 000 End of Year 2 R30 000 End of Year 3 R10 000 Find the present value (at the beginning of the first year) of all future royalties at a compound interest rate of 8% pa.

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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Similar questions

Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine the total amount of interest you will pay on this loan. Copy the table from Step 1, make an extra principal payment of $2,000 on the first day of year two. How does this change the total interest you will pay on this loan? Create an amortization table in Excel for a new car loan for 30,000 for three years at 5%. Determine the total amount of interest you will pay on this loan. Copy the table from Step 3, change the interest rate to 2%. How does this change the total interest that you will pay on the loan? What is the total amount you will pay for the car (principal and interest) in each of the steps 1, 2, 3 and 4.
A family has taken out a mortgage of £450,000 to purchase a house on 1.1.2022. The mortgage is repaid in monthly instalments at the beginning of each month over 20 years.(a) Determine the monthly payment amount assuming an effective interest rate of 1.6% per annum.(b) After having made 5 years of payments the family takes out a new mortgage with an effective interest rate of 6% per annum for the remaining 15 years. Payments are made monthly in arrears. Determine the new monthly payment amount.(c) If the family would have originally agreed to make monthly instalments of £2,000 paid at the beginning of each month starting on 1.1.2022, when would they have paid off the loan? Assume an effective interest rate of 1.6% per annum throughout.
A young executive is going to purchase a vacation property for investment purposes. She needs to borrow $103,000.00 for 27 years at a 4.1% annual interest rate, with interest compounded monthly, and will make monthly payments of $526.17. (Round all answers to 2 decimal places.) Create an amortization table to answer the following: a) What is the unpaid balance after 11 months? $ 100410.01 b) Over the 11 months in part (a), how much total interest did she pay? S
Asma has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=4.67% p.a. She will make 10 annual repayments. According to the loan agreement, Asma's repayments will be $83,000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (b) Assume that all annual repayments will be paid at the beginning of each year (the first payment will be at the start of the first year), what is the value of Asma's annual payment amount, X (rounded to four decimal places)? Question 7Answer a. 134233.5495 b. 128177.7626 c. 127887.4496 d. 133859.7935
FEU has been bought by an individual. It is to be paid 4% compounded semi-annually, eight times a year for 10years with an amount of 3.8Million per payment. If the payment is to start 4 years from today. What is the accumulated amount after 25 years?
Kate owes P120 000 due in 4 years plus the accumulated interest from today at 13% compounded quarterly. She agrees to pay it in installment: P30,000 after 2 years; P40,000 after 3 years the remaining balance at the end of 4 years If the obligation was to be settled by equal periodic payments with first payment due at the beginning of the 3rd quarter of the 2nd year. Find the amount of the equal payments.
A artist invest 4,596 at 5% compounded semiannually for two years. What is the future value of the investment and how much interest will they earn over the two year period?
Edwill just purchased a new home costing R1 107 900,00 by paying R120 000,00 cash on the purchase date, and agreeing to make payments at the end of each of the following eight years for the remainder owed; the first payment is due one year after the purchase date. The interest rate is 7,4% per annum, compounded yearly. This is illustrated by the following timeline: years 0 7.4% per annum, compounded annualy Considering the amortisation schedule, what is the percentage, rounded to two decimal places, of the total payments made in the first two years that will go toward repayment of interest?
Mr. Marc Pogi wish to purchase a house and lot in San Carlos City worth 2,200,000 pesos and the seller requires a 15% down payment. Then Mr. Marc Pogi will loan 6.5% monthtly interest rate to be paid for 20 years. Answer the following questions and find the unknown value needed in the amortization table below for the first 6 months of payment. Period Monthly Amortization Interest Principal Outstanding Balance 1 A? 2 3 c? 4 B? D?

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