Assessment i12SavedWhat is the present value of this $6,800? (Use the Table provided.)Note: Do not round intermediate calculations. Round your answer to the nearest cent.Present valueHelpPaul Havlik promised his grandson Jamie that he would give him $6,800 8 years from today for graduating from highschool. Assume money is worth 8% interest compounded semiannually.Next >4- ChapterSave & Exit Submi

Present Value is the current price of future value which will be received in near future at some…

Paul Havlik promised his grandson Jamie that he would give him $6,800 8 years from today for graduating from high school. Assume money is worth 8% interest compounded semiannually. What is the present value of this $6,800? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Present value

Paul Havlik promised his grandson Jamie that he would give him $6,800 8 years from today for graduating from high school. Assume money is worth 8% interest compounded semiannually. What is the present value of this $6,800? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent. Present value

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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Sam Long anticipates he will need approximately $226,900 in 10 years to cover his 3-year-old daughter's college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent Amount
If you owe $32,000 payable at the end of five years, what amount should your creditor accept in payment immediately if she could earn 12 percent on her money? Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. Present value
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
You expect to receive an inheritance of $50,000 (actual) six years from now. What is its present worth at a real interest rate of 4% per year and an inflation rate of 3% per year. Please workout and do not use excel or if you use excel shows steps and formulas thank you!
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What is the present value of $250,000 to be received after 40 years with a 15 percent discount rate? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.
Your grandfather has offered you a choice of one of the three following alternatives: $10,000 now; $4,800 a year for eight years; or $56,000 at the end of eight years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 9 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a-2. Which alternative should you choose? multiple choice 1 $56,000 received at end of eight years $4,800 received each year for eight years $10,000 received now b-1. If you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b-2. Which alternative should you choose? multiple choice 2 $56,000 received at end of eight years $4,800 received each year…
Answer each of the following independent questions. Ignore personal income taxes. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Suppose you invest $4,100 in an account bearing interest at the rate of 10 percent per year. What will be the future value of your investment in five years? 2. Your best friend won the state lottery and has offered to give you $11,600 in four years, after he has made his first million dollars. You figure that if you had the money today, you could invest it at 8 percent annual interest. What is the present value of your friend’s future gift? 3. In four years, you would like to buy a small cabin in the mountains. You estimate that the property will cost you $68,500 when you are ready to buy. How much money would you need to invest each year in an account bearing interest at the rate of 4 percent per year in order to accumulate the $68,500 purchase price? 4. You have estimated that your educational expenses…
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Sam Long anticipates he will need approximately $225,600 in 15 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today at an interest rate of 6% compounded semiannually? (Use the Table provided.) Note: Do not round intermediate calculations. Round your answer to the nearest cent.

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