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- An investment on a machinery can yield following cash flow for 8 years and in the end of the 8th year resale value will be 15,000 dollars. How much can be invested on this machinery at the present time, considering the interest rate of 10% compounded annually. Please explain your work in detail. C-? 1-2000 1-2000 -2000 -2000 -1000 -1000 1-1000 -1000 L-$15,000 2. 4. 7. C: Cost, I: Income, L: Salvage ValueSuppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?5:32 A O N 23% ( Title A man purchased a car with a cash price of P350,000. He was able to negotiate with the seller to allow him to pay only a down payment of 20% and the balance payable in equal 48 end of the month installment at 1.5% interest per month. Once the day he paid the 20th installment, he decided to pay the remaining balance. What is the remaining balance that he paid? (10 points) 1/1 ET T 17 II
- What is the current value of a security that pays $500 per year for 7 years if similar investments now earn 12%A firm borrows $2000 for 6 yr at 8%, to be repaid in a lump sum at the end of 6 yr. At the end of 6 year, the firm renews the loan for the amount due plus $3000 more for 2 yr at 8%. What is the most nearly the amount of the loan renewal? 7021 6376 7201 6673In saving for a future major purchace, Oksana has been making uniform deposits of $5,000 per year in an account that has earned variable annual interest rates of in-12-13-5% and i=15-7% (see cash flow diagram below). How much does she have in the account immediately after making the last deposit? ATT The account will have ! (Round to the nearest dollar) GUILD
- How much must be deposited now at 5.875% annual simple interest so that in 2 years and 7 months an account will contain $3000? a.$ 2,578.51 b.$2,640.68 c.$2,604.68 d.$2,588.64To pay off $75000000 worth of new construction bonds when they come due in 25 years, a water municipality must deposit money into a sinking fund. Payments to the fund will be made quarterly, starting three months from now. If the interest rate for the sinking fund is 6.4% compounded quarterly, how much will each deposit be?" a. 111647.29 b. 308427.99 c. 236190.88 d. 137843.63 e. 179381.31You have a savings account with Corp X that pays out monthly interest at 0.25% p.a. You had a balance of P2,300,000 at the end of November 2014. You withdrew P500,000 on December 12, 2014 and deposited P250,000 on December 28, 2015. How much net interest will you get at the end of Dec? If the savings is with a bank, how much net interest will you get at the end of December?
- 14 - Find the amount to be repaid at the end of 10 years for the loan of 150 000 lira withdrawn from the bank for housing need with an annual compound interest of 15%. How much less would be paid if this payment had been made on a simple interest calculation?A) 232 105B) 231 834C) 235 000D) 233 575E) 234 271Assume I won 8 million dollars in a lottery. I could take my winnings in installments of 2 million dollars a year for four years or a lump sum of fewer than 8 million dollars. If I take the installments, my first installment would come the day I claimed my winnings at the state lottery office. Assume that the interest rate is 7% per year and that there are no taxes on the winnings. 1. Calculate what the lump sum should be so that it would exactly equal the present value of the stream of the future stream of installments from the lottery. You must show and explain the work. 2. What would your answer change be if the first installment in the question above did not come until one year after I claimed my winnings. You must show and explain your work.A loan of $245,000 is to be repaid in equal quarterly payments ovr a period of 6 years. if the interest rate in 14.5 compounded quarterly, what is the amount of unpaid principal at the beginning of the third year Oa S148,281 Ob. S147.044. Oc $247325 Od. SI84.203 O SI85.206