sa result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance packag $220,000 cash, another $220,000 to be paid in one year, and an annuity of $42,000 to be paid each year for 20 years. Use prem alue tables to compute the present value of the complete package, assuming an interest rate of 7 percent. (Euture Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $3) (Use appropriate factor(s) from the tables provided. Round "Present Value" to nearest whole dollar amount.) Cash Payment Present value of $220,000 face value Present value of $42.000 annuity Total Table values based on 7% 1 7% 20

sa result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance packag $220,000 cash, another $220,000 to be paid in one year, and an annuity of $42,000 to be paid each year for 20 years. Use prem alue tables to compute the present value of the complete package, assuming an interest rate of 7 percent. (Euture Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $3) (Use appropriate factor(s) from the tables provided. Round "Present Value" to nearest whole dollar amount.) Cash Payment Present value of $220,000 face value Present value of $42.000 annuity Total Table values based on 7% 1 7% 20

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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Not use excel Q)Payments of $1,700 in 1 year and another $2,100 in 5 years to settle a loan are to be rescheduled with a payment of $1,000 in 21 months and the balance in 36 months. Calculate the payment required in 36 months for the rescheduled option to settle the loan if money earns 5.05% compounded quarterly during the above periods.
Suppose you borrow $14,000. The interest rate is 11%, and it requires 4 equal end-of-year payments. Set up an amortization schedule that shows the annual payments, interest payments, principal repayments, and beginning and ending loan balances. Round your answers to the nearest cent. If your answer is zero, enter "0". Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ fill in the blank 60 $ fill in the blank 61 $ fill in the blank 62 $ fill in the blank 63 $ fill in the blank 64 2 $ fill in the blank 65 $ fill in the blank 66 $ fill in the blank 67 $ fill in the blank 68 $ fill in the blank 69 3 $ fill in the blank 70 $ fill in the blank 71 $ fill in the blank 72 $ fill in the blank 73 $ fill in the blank 74 4 $ fill in the blank 75 $ fill in the blank 76 $ fill in the blank 77 $ fill in the blank 78 $ fill in the blank 79
Your company will generate $63,000 in annual revenue each year for the next seven years from a new information database. If the appropriate discount rate is 7.50 percent, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Please Don't use excel to Ans Question- What is the size of the payments that must be deposited at the end of each 6-month period in an account that pays 8.5%, compounded semiannually, so that the account will have a future value of $200,000 at the end of 20 years? (Round your answer to the nearest cent
4. ALDA Investments makes a sale of equipment for a value of L 250,000.00 where the cancellation is negotiated through 3 payments, which are paid 1, 2 and 3 months after the purchase, if a rate of 18% per year capitalizable per month is negotiated What is the value of the payments if: a)Each one is 15% larger than the previous one. b)The last two are equal to each other and the first is equal to the sum of the two.
None
Please no excel. Thanks An 18-year loan of 21,000 may be repaid under the following two methods: amortization method with equal annual payments at an annual effective rate of 6.1% sinking fund method in which the lender receives an annual effective rate of 6.450% and the sinking fund earns an annual effective rate of j. Both methods require payment of X to be made at the end of each year for 18 years. Calculate j. Round your answer to one decimal place
Vikrambahi
[Use BA II PLUS Calculator] *Must first solve for time value* TNT Construction borrowed $150,000 at 7.26% compounded annually and signed a contract with the provision to pay $9,000 at the end of every 3 months. How much principal did TNT Construction repay during the final year of the contract? Rounded to the nearest hundred dollars. A) $34,500 B) $28,800 C) $42,900 D) $62,400
TBTF Bank makes a 3 year interest only loan to AFC Inc of $2,350,000.00. The interest rate on the loan is ¡ (52) = 12.500%, and the payments will be made quarterly. TBTF reinvests the payments at an interest rate of ¡(26) = 14.250%. At maturity, what is TBTF Bank's annual ROI over the lifetime of the loan? (AFC does not default.) a. 11.289% b. 12.241% C. 13.601% d. 14.009% e. 12.377%
7. A company must cancel a loan whose amount will have a value of $ 300,120.45 at the end of 6 years, if the company agrees to make semi-annual payments equal to 3.5% per annum effective. What will be the value of payment if you make the first one 18 months after the transaction? $ 27,742.78 8. What amount would have to be invested at the end of each year for the next 8 years, at 4% convertible? semiannually to have $ 5,000 at the end of the term. $ 541.87
The maintenance on a machine is expected to be P3,500, P7,000, P10,500, and 14,000 for the second, third, fourth, and fifth year, respectively. Then the present equivalent value at the beginning of the first year if the interest is 6% per year is Blank 1. Blank 1 Add your answer

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