ou have invested 7 million dollars for a horizon of 24 months. You will be paid interest at 7.80% per annum, with semi-annual compounding. How much will you receive at the end (after 24 months)?     $9.453 million     $8.178 million     $8.158 million     $8.092 million

Q: If you invest $5,000 now, and your investment pays 12% per annum, how much will you have in three…

A: Following information is given in the question: Investment today (Present value) = $5000 Annual…

Q: A 20 year loan of $100, 000 at i = 6% is paid off by paying 125% of each year’s interest at the end…

A: Term of Loan20yearsLoan amount100000Interest rate6%

Q: A firm is scheduled to receive payment of $32,000 in 1 year. What is the present value of this…

A: To calculate the present value of payment that will receive after 1 year we will use the below…

Q: A firm is scheduled to receive payment of $32,000 in 2 years. What is the present value of this…

A: To calculate the present value we will use the below formula   Present value = FV/[1+(r/m)]n*m Where…

Q: You have $15,000 that you want to invest.  You expect your investment to yield 7% annual growth…

A: Lumpsum Investment  $   15,000.00 Monthly Investment  $        250.00 Interest Rate 7% Time…

Q: Nominal annual interest rates are 7.3%. If a businessperson has an opportunity to invest $40,000…

A: Option 1: If 40,000 invested at 7.3% for 5 years: Future Value = Present Value * ( 1 + Interest…

Q: How much should be invested now at 6.7% compounded semiannually to have $47,000 in 19 years?

A: The amount required to be invested today is calculated as present value

Q: 11. Calculate the present value of payments of RM15,000 per year for 4 years if the first payment…

A: The objective of the question is to calculate the present value of a series of future payments and…

Q: An investment will pay you $4000 each year for the next 8 years. The investment yields 6% APR,…

A: Step 1 Investors and financial advisers value the future value because it helps them determine how…

Q: Your company will generate $75,000 every 3-months for the next seven years from a new project.…

A: Given a certain rate of return, present value (PV) is the current worth of a future sum of money or…

Q: What will be the future value of $5 000 invested for six years at 8% per annum compounded annually?

A: Information Provided: Principal value = $5000 Interest rate = 8% compounded annually Years = 6

Q: ABC deposits $30,000 at the end of every quarter to save up $550000 for a capital project in 4…

A: The nominal return refers to the return quoted to the investor and does not consider the effect of…

Q: should be invested now into an 8% per annum interest-bearing account, compounded ye

A: The given problem can be solved using PV function in excel. PV function computes present worth for…

Q: What amount of money will mature to $63,750 in 3 years and 8 months at the interest rate of 6.75%…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…

Q: What annual interest rate must be obtained to accumulate $10,000 in 8 years on an investment of…

A: The interest rate is compounding quarterly. Hence, it is important to understand that, annual rate…

Q: With continuous compounding at 4.25% p.a. for 25 years, what is the approximate future value of a…

A: The future value equation is used to compare various options because holding a given amount in cash…

Q: is invested now, $2,400 two years from now, and $3,400 four years from now at an interest rate of 8%…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: What is the present value of a stream of $800 cash payments, each to be made at the end of the next…

A: Given:

Q: An investor pays $245,000 for a mine that will produce level annual revenue for 18 years. What…

A: Level annual revenue is the term used to describe an amount of income that is consistently created…

Q: If you invest $4,000 at the end of every year for nine years at an interest rate of 6%, the balance…

A: Future value in case of continues payments  = Each installment × (1+pir) ^n/pir Where  pir =…

Q: What annual rate of return is earned on a $3,300 investment when it grows to $7,100 in nineteen…

A: 4.11%

Q: An investment of $2,000 pays interest of 1.5% per month. What will be the value of this investment…

A: Future value is that amount which will be received by the investor at a specified period of time at…

Q: What principal deposited 3 years ago will grow to $24,939.86 in 5 years and 4 months from now if…

A: Present value refers to the current value of all future cash flows and the annuity amount discounted…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.