When Dan signed a three-year contract as a manager, the company allowed reimbursement of $420 at the end ofevery month for his car expenses. At the time the contract was signed, money was worth 9.61% compounded monthly(a) What value did the expense reimbursement provision have when the contract was signed?(b) What is the outstanding value of the reimbursement after the 10th payment?(a) The value was $(Round to the nearest cent as needed Round all intermediate values to six decimal places as needed.)(b) The outstanding value is S(Round to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

The PV of a contract refers to the value of the future cash flows of the contract after they have…

Answered: When Dan signed a three-year contract…

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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Mr. Harrington had a new heating system installed in his office. The balance owing to the heating company is $24,000 which includes equipment and installation fees. The heating company has agreed to let him make individual payments on the account whenever he’d like, but the final balance must be paid two years (24 months) from now. Starting today, interest will accumulate on the balance at 3.80% compounded monthly. Mr. Harrington will make a payment of $7000 4 months from now and $8000 18 months from now. What is the final balance owing on the account in two years (24 months from now)? a. $10634.91 b. $10265.91 c. $11169.94 d. $10281.86
Jeremy purchased a car using a 4-year car lease at 5.70% compounded quarterly that required him to make payments of $267 at the beginning of each month. Calculate the cost of the car if he made a down payment of $1,000. Round to the nearest cent
Mr. Harrington had a new heating system installed in his office. The balance owing to the heating company is $40,000 which includes equipment and installation fees. The heating company has agreed to let him make individual payments on the account whenever he’d like, but the final balance must be paid two years (24 months) from now. Starting today, interest will accumulate on the balance at 3.45% compounded monthly. Mr. Harrington will make a payment of $8000 4 months from now and $6000 19 months from now. What is the final balance owing on the account in two years (24 months from now)?
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Mr. Harrington had a new heating system installed in his office. The balance owing to the heating company is $24,000 which includes equipment and installation fees. The heating company has agreed to let him make individual payments on the account whenever he’d like, but the final balance must be paid two years (24 months) from now. Starting today, interest will accumulate on the balance at 3.80% compounded monthly. Mr. Harrington will make a payment of $7000 4 months from now and $8000 18 months from now. What is the value of i (the periodic interest rate)? a. 0.001583 b. 1.900000 c. 0.009500 d. 0.003167
1. A farmer bought a tractor costing Php 25,000 payable in ten semi- annual payments, each installment payable at the beginning of each period. If the rate of interest is 26% compounded semi- annually, determine the amount of each installment. 2. A man bought an equipment costing P60,000 payable in 12 quarterly payments each installment payable at the beginning of each period. The rate of interest is 24% compounded quarterly. What is the amount of each payment 3. Find the difference between the sums of annuity due and ordinary annuity for the following data Periodic payment = P14,000 Payment interval = 3 months Term = 16 years Interest rate = 10% compounded quarterly
Peter purchased a machine for $400,000. He paid 16% of the value as a down payment and received a loan for the balance at 7.05% compounded annually. He had to make payments of $4,443.55 at the end of every month to settle the loan. a. How many payments were made? A full solution for the number of payments should be shown. Submit your solution. o payments Round up to the next payment period
Jie purchased a computer priced at $891.06, financing it by paying $60.38 on the date of purchase, and signing a contract to pay equal monthly payments over the next fifteen months. If the terms of the contract state that interest is calculated at 11.9% compounded monthly, how much does Jie have to pay at the end of each month? Jie must make payments of $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
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