You are investigating the cost of project torenovate the kitchens in a large apartmentbuilding, the payments for this work will be$32,500 up front and $13500 a month for 8months, followed by a completion payment of$31500. To start this project you will need topurchase equipment for $70,000 at thebeginning of the project and you expectmonthly materials and operating costs to beabout $7,500.The Rate of Return is 12%.What is the total PV of the 8 monthly paymentsof $13500 per month. You should assume thatthe payments are made at the end months 1through 8. (So this is a ordinary simpleannuity).Round your answer to the nearest penny.Your Answer:Answer

The formula to determine the PV of monthly payments is that of an ordinary annuity. The formula is…

Answered: What is the total PV of the 8 monthly…

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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An amount of $124 is paid at the end of every month into an account. If the nominal interest rate is 3.02% compounded semiannually, how long (in years and months) will it take for the payments to accumulate to an amount of $6,455.41? Use the integer value of N to calculate years and months. |CN = |2 P/Y = 12 I/Y = 3.02 FV 6,455.41 PMT = $ -124 = years N= 192 to the nearest integer) PV = $14,892.17 X x (round = month(s)
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Use Table 12-1 to solve. Suppose Jorge Otero has set up an annuity due with a certain credit union. At the beginning of each month, $150 is electronically debited from his checking account and placed into a savings account earning 6% interest compounded monthly. What is the value (in $) of Jorge's account after 18 months? (Round your answer to the nearest cent.) $ Submit Answor
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To find out the balance in your account just after you make your last deposit whereby you will deposit $400 at the end of each 6 months for the next 5 years at a nominal rate of 12% p.a. compounded semi- annually, you can also apply which of the following formula to solve for the accumulated amount manually: Select one: O a. FV= PV(1+i)" FV = PV(1+i)" O b. PVn = PMT[1-(1+ i)*"] /i 1-(1+1) PV = PMT| FVn = PMT[(1+ i)" -1] / i (1+i)"-1 FV = PMT %3D
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If you want to have $3,172 in 37 months, how much money must you put in a savings account today? Assume that the savings account pays 11% and it is compounded monthly. Round to two decimal places (Ex. $000.00)
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11. Suppose you have a balance of $5400 on your credit card, which charges an APR of 18%. If you want to pay off the balance in 18 months, how much should you pay each month? What is the total amount of interest you will end up paying? Assume that you charge no additional expenses to the card. 5400 012
Suppose $1,200 is deposited into an account which has an annual percentage rate of 9.81% per year. Assume it remains in the account for 18 years and no additional money is added to the account other than interest. (a) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, of assuming interest is compounded annually. Do not round any values. You can enter arithmetic expressions (containing +, -, *, /, or ^) in any of these boxes. Number 1200 •( Number What is the value in year x = 18 of an investment of $1,200 dollars which pays 9.81% compounded annually? $ Number (Round to the nearest 0.01 dollars) (b) Complete the boxes below to write an expression for the amount (in dollars) at year x = 18, assuming interest is compounded weekly (52 times per year). Do not round any values. You can enter arithmetic expressions (containing +, –, *, /, or ^) in any of these boxes. Number 1200 ( Number What is the value in year x = 18 of an investment of $1,200…
With a 0.18 compounded quarterly, approximately how much money must be invested today in order to withdraw $ 47,783 per 3 months at the end of each 3 months for 6 payments? will upvote, thankyou :)

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What is the total PV of the 8 monthly payments of $13500 per month. You should assume that the payments are made at the end months 1 through 8. (So this is a ordinary simple