s? Money is worth 12% per annum. Tabu
Q: At what rate must Rm50,000 to grow to 406,855 IN 15 years compounded annually? Select one: a. 18%…
A: Amount Invested = RM 50,000 Amount gro in 15 years = RM 406,855 Years(n) =15 Interest rate = r% let…
Q: How much should be invested now (to the nearest $) to receive $24,000 per annum in perpetuity if the…
A: We have the following information: Annuity: $24,000 Rate of Interest: 5%
Q: How much should be invested now at 7.4% compounded annually to have $48,000 in 15 years?
A: In this question, we have to calculate present value of $ 48,000 to be received in 15 years at 7.4%…
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: P1,500 is invested every 4 months at 3.8% per annum compounded quarterly. How much will the annuity…
A: An annuity is a financial product that pays out a fixed stream of payments to an individual, and…
Q: What is the interest earned on a P100,000 investment if it is held for 20 years at 4.3% simple…
A: Under simple interest, Total interest per year remains the same and there is no concept of interest…
Q: 3. When will Php 30,000 earn interest of Php 15,000 if it is invested at the rate of 7.5% compounded…
A: Time value of money concept says that a sum of amount invested today will have more value in future…
Q: An investment costs sh.150,000 and pays sh. 12,000 in perpetuity. If the interest rate is 9 percent,…
A: The payments flow which continues for indefinite period with equal amount and interval is called…
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 sum of money will grow to $23000.00 in seven years at 9.612% compounded monthly? FV = $ IY =…
A: We can use the formula for compound interest to solve this problem: A = P(1 + r/n)^(nt) where: A =…
Q: If the money invested will earned P200,000 after 10yrs at 16% compounded annually, what is the…
A: Let the principle Amount be X It can be calculated by following formula FV = PV* (1 + r / n)nt…
Q: 3. Ir the money is worth 5%% compounded annually. what single payment now is equivalent to 45…
A: The single payment now will be the present value of the series of cash flows beginning 5 years from…
Q: How much is the present sum is equivalent to a series of P1000 annual end-of year payments, if a…
A: Annual payment (P) = P 1000 Interest rate (r) = 6% Number of annual payments (n) = 10
Q: How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?
A: Solution:- When an equal amount of payment is made each period at the beginning of period, it is…
Q: A person invests Rs 2,00,000 at 6% Rs 50000 at 7% and 25000 at 8% . What is the average return on…
A: Return on Investment: It measures and evaluates the profitability of any investment made by a firm.
Q: How long will it take for an investment to increase by 139% its amount if money is worth 14% comp.…
A: Given, Amount will be 139% at the end of the period So, Let's assume amount now is 100 amount at…
Q: What will be the Value of 10000$ invested @10% p.a compounded monthly for 25 years?
A: Future value is the worth of a current sum of money after a specified time span, given a fixed…
Q: What equal annual deposits must be made at t = 2, 3, 4, 5, and 6 in order to accumulate $25,000 at t…
A: Future value is the value of current cashflow compounded to the future date at specified rate.…
Q: 17. What is the present value of a $5,500 perpetuity starting in a year's time, then growing by 4%…
A: Option (A) $55,000Explanation:Given information, Cash flow at the end of year 1 (CF1) = $5,500Growth…
Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…
A: The question is based on the concept of future value calculation of annuity payment, by use of…
Q: The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000…
A: Net present value is the difference between the present value of cash flow and initial investment.
Q: If you invest $10,000 today for 8 years, how much will the original investment be worth if…
A: Solution:When some amount is invested somewhere, it earns interest on it.The amount initially…
Q: What is the returnon an investment that costs $1,000 and is soldafter 1 year for $1,060?
A: Given information: Investment cost (purchase price) is $1,000 Sale price is $1,060
Q: How long would it take for a principal of P to triple if money is worth 6.5% compounded quarterly?…
A: The total worth of a series of equal, regular cash flows received or paid at regular intervals over…
Q: is the present value of $10000 to be received 20 years from now, if the principal is invested at 8%…
A: Given, Amount to be received, A = $10,000 No. of years, n = 20 Interest rate , i = 8% or 0.08
Q: If you borrowed P 10,000.00 from a bank with 8% interest per annum, what is the total amount to be…
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…
Q: How much would have to be deposited today in an investment found paying j12 = 10.4% %3D to have $200…
A: Amount after 3 years = Deposit * [ 1 + Monthly rate ]Number of months
Q: What is the present value of a 6% investment that would pay P30,000 annually perpetually?
A: To calculate the present value we will use present value of perpetuity formula as follows: Present…
Q: What present sum is equivalent to a series of P1,000 annual end-of-year payments, if a total of 20…
A: Given: Annual payment = P1,000 Period = 20 Interest rate = 12%
Q: What sum of moeny invested now at 5% will give GHc 120 in 2-years' time?
A: Future Value = GHc 120 Time period = 2 years Interest rate = 5%
Q: Find the present value of $1270 due in 60 days if money is worth 6.2%.
A: Preset value as per simple int rate =Present value = Present value + interest expense
Q: How much should be invested now at 6.7% compounded semiannually to have $44,000 in 12 years
A: Step 1 The worth of an anticipated income stream as of the valuation date is known as the present…
Q: What is the future value of a perpetuity paying 100 anually/? Assume 10% interest rate and cash…
A: Information Provided: Annuity = 100 Interest rate = 10%
Q: 2. If money is worth 8 2%, find the present value on p2,500 due in 2 years and 6 months?
A: Present Value refers to the value of cash flows today which is to be received at some future time…
Q: $17,000 is invested at 10% per year, in approximately how many years will the investment double? OA.…
A: Present value is a financial concept that refers to the value of a future cash flow in terms of…
Q: 2. Beckton Steel Products, a company that specializes in crankshaft hardening, is investigating…
A: FV is the future worth of cash flows that have occurred in the past or present.
![3. A company purchased an equipment costing $60,000. The equipment has guaranteed
useful life of 16 years with salvage value of $6,000. Using sinking fund method, what is
the book value of the equipment after 12 years? Money is worth 12% per annum. Tabulate
the annual depreciation amounts and the book value of the equipment at the end of each
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- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method. Calculate the annual depreciation expense. After five years of recording depreciation, Montezuma determines that the delivery truck will be useful for another five years (ten years in total, as originally expected) and that the salvage value will increase to $10,000. Determine the depreciation expense for the final five years of the assets life, and create the journal entry for years 6–10 (the entry will be the same for each of the five years).
- Montello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for 125,000 miles. Montello uses the units-of-production depreciation method, and in year one it expects to use the truck for 26,000 miles. Calculate the annual depreciation expense.A company purchased an equipment costing $60,000. The equipment has guaranteed useful life of 16 years with salvage value of $6,000. Using sinking fund method, what is the book value of the equipment after 12 years? Money is worth 12% per annum. Tabulate the annual depreciation amounts and the book value of the equipment at the end of each year.a company owns earth moving equipment that cost P100,00. After 8 years it will have estimated salvage value of P20,000. Compute the annual depreciation cost and the book value at the end of 5 years a) using SLD b) using sinking fund
- a) an asset is purchased for $200,000. The estimated life is 8 years and the salvage value is $20.000.assuming the item is depreciated via straight line method, find the book of the asset at the end of 5 years? b) If one-time amount of $500 is invested at an annual interest rate of 8% (compound annually), find its future worth at the end of 20 years?A machine, purchased for$50,000, has a depreciable life of five years. It will havean expected salvage value of $4,500 at the end of the depreciable life. Find theyearly depreciation, Book value every year using the following methods: a. MATHESON EQUATION b. SINKING FUND METHOD ( i = 12%)A machine was purchased for 100,000 and has a salvage value of 20,000 what is the total depreciation on the 7th year if the economic life is 10 years? Assume i = 8% Use sinking fund method
- An asset is purchased for $90,000 with the intention of keeping it for 10 years, but is sold at the end of year 3. A total of $30,000 was borrowed money that was to be repaid over three years in equal annual payments, including principal and interest. The depreciation is correct for the appropriate MACRS Recovery Period. MARRAT = 12%. a. What is the MACRS property class of the asset? b. What is the salvage value received at the end of year 3? c. What is the loan interest rate? d. What is the book value at the end of year 3? e. Determine the values of the entries in the empty cells.A machine was bought P100,000 and the scrap value is P15,000 after 30years. Calculate its total depreciation at year 14 with 4% interest rate.Use Sinking Fund MethodA company bought a machine for BD 250,000 which has a useful life of 10 years and can be sold for BD50,000 at the end of its useful life.Determine the depreciation on the 8th year and book value at the end of 8th year using sinking fund if interest is 12%. Prepare the depreciation schedules.
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