Narda's parents made P20,000 into an account that will earn an effective interest rate of 8% for 4 years and 6 months. Narda will be able to claim the maturity value of this fund after this term has elapsed. But Narda insists to use an annual effective discount rate of 5% per year to find the present value of the amount she is supposed to receive at maturity. How much approximately is the present value calculated by Narda?
Q: Multiple valuation techniques are used to “triangulate” the value of a company. What are three…
A: There are in fact various methods to value a company or a firm or a business. Different methods…
Q: A “three-against-nine” FRA has an agreement rate of 4.76 percent. You believe six-month LIBOR in…
A: FRA refers to an agreement between the customer and the bank for paying or receiving the…
Q: Mom and Pop Groceries has just dispatched a year's supply of groceries to the government of the…
A: Here the future cash flows are uncertain. Hence there is a risk factor and this has to be accounted…
Q: Suppose that stock price is $21, the exercise price is $23, the risk-free interest rate is 4% per…
A: Options gives the opportunity to buy or sell stocks on the expiration by payment of small amount of…
Q: What is the NPV for the following project if its cost of capital is 15 percent and its initial…
A: NPV is the differential of present value of all cash inflows and cash outflows. If NPV is positive,…
Q: able income assum
A: The person wants to draw equal money assuming x for the next twenty years, He will get 3.41%…
Q: QUESTION 31 Leo offers to sell Mona a computer. Mona sends an acceptance via the mai. This…
A: As per Bartleby honor code, when multiple questions are asked, the expert is required only to solve…
Q: entory balance was $1.67
A: First of all, find ITOR (Inventory Turnover Ratio) = Cost of Goods Sold COGS/ Average Inventory.…
Q: ey borrowed
A: interest paid on money borrowed to buy stock for a standard investment portfolio- Yes deduct id it…
Q: Here and Gone, Inc., has sales of $21,332,097, total assets of $12,393,090, and total debt of…
A: Profitability ratio shows the ability of the company to generate income relative to its revenue,…
Q: The following four factors were identifies and later used to explain the return on a stock and level…
A: An asset's returns can be forecasted using the linear relationship between the asset's expected…
Q: Evonne Williams It’s fine as a single taxpayer. Evonne Was the beneficiary of one of her great…
A: A taxpayer may make contributions to an individual retirement account (IRA) either before or after…
Q: Arredondo, Inc., has current assets of $1,349, net fixed assets of $14,811, current liabilities of…
A: Solution:- Shareholder’s equity represents the amount of capital contribution by the owners of the…
Q: What are the expected returns for stock A and stock B? State Probability Return on A Return on B…
A: State Probability Return on A Return on B Boom 0.6 0.35 0.1 Bust 0.4 0.05 0.25 Expected…
Q: You purchased a house for $100,000 at an 8% APR. Your loan term is 360 months. If you make minimum…
A: Here, Particulars Values Loan Amount (PV) $ 100,000.00 APR 8.00% No. of months (NPER)…
Q: The risk-free rate is 3.2 percent. Stock A has a beta = 1.9 and Stock B has a beta = 1.3. Stock A…
A: A potential investment's beta is a measurement of the risk an investment will bring to a portfolio…
Q: Which of the following are correct statements concerning corporate dividends? a. Dividends are…
A: Corporate dividends are the payments in the form of dividends provided to the shareholders of the…
Q: Zymase is a biotechnology startup firm and it considers the following investment opportunities. The…
A: Given: Project A NPV 90 Project B Probability NPV 50% $160 50% $0 Project C…
Q: Belize Dollar= $.4850. The settlement date for the contract is March 16, 2023. Assume that on March…
A: Future contract Worth = 7,500,000 Belize Dollars Settlement rate of 1 Belize Dollars = $0.4850…
Q: Q 2 To borrow $750, you are offered an add on interest loan at 9.1 percent with 12 monthly…
A: We need to use add on method, in which total interest paid over tenure of loan is calculated using…
Q: Can you show how to calculate the variance step by step without using excel
A: Meaning of Variance : It is a measure of spread of values (in this case return of Philips) from the…
Q: Current assets Net Fixed assets ● Total assets Accounts payable and accurals. Short term debt Long…
A: The Dividend Growth Model refers to a model that helps in calculating the intrinsic value of a stock…
Q: uppose you bought a 10 percent coupon bond one yea sells for $1,080 today. a. Assuming a $1,000 face…
A: Bonds are quite safe and secured investment but the return on bond are lower and bonds are paid…
Q: chemical company is planning to release a new brand of insecticide that will kill many insect pests…
A: Incremental earnings after tax in year 3 will be the same as the net income in year 3. To compute…
Q: ou have just completed a $25.000 feasibility study for a new coffee shop in some retail space you…
A: Data given: Feasibility study=$25000 Cost of space bought two years ago=$105000 Amount you would net…
Q: A stock has an expected return of 10.2 percent. The expected return on the market is 9 percent and…
A: Expected Return = Risk Free Rate +Beta ×Market Return-Risk Free Rate Expected Return is 10.2% Market…
Q: Assume that you need $1,000 four years from today. Your bank compounds interest at an 8 percent…
A: Future Value $1,000.00 Interest Rate 8%
Q: or the data set Download data set, perform a 3 month moving average to determine the forecast for…
A: Moving Average Formula= C1+C2+C3+C4+.....CnN C1, C2, C3, C4, ....Cn stands for closing prices,…
Q: growing rapidly. Dividends are expected to grow at rates of 25%, 18%, and 12% over the next three…
A: Dividends are cash amount that is paid out the shareholders out the net income because they are…
Q: You are getting a $100,000 mortgage and paying 2 points. What is the effective annual yield (in…
A: Here,
Q: Edwards Construction currently has debt outstanding with a market value of $128,000 and a cost of 12…
A: EBIT refers to earnings before interest and taxes. To value Edward we will use the discounted cash…
Q: A $347,500 mortgage at 4.90% compounded semi-annually was settled with monthly payments of $2, 525.…
A: Here, To Find: Part A. Amortization period =? Part B. Amortization period shorten if the payments…
Q: ). At a certain interest rate the present values of the following two payment patterns are equal:…
A: Present value is the equivalent amount of money today required that is to be paid in future based on…
Q: Which of the following activities offers the highest risk and return? O a. Trading shares for an…
A: Risk and return are both go together and when risk is high than return is high and risk is low and…
Q: The capital structure of a local fruit and vegetable grower trading as Metsimotlhabe produce is…
A: Total capital of the firm = Long term bonds + Preferred stock + Common stock = 4000000 + 3000000 +…
Q: Narda's parents made P20,000 into an account that will earn an effective interest rate of 8% for 4…
A: Effective interest rate is the actual rate earned after considering the effect of compounding.…
Q: A firm has the balance sheet accounts, common stock, and paid-in capital in excess of par, with…
A: When the shares are sold for more than its face value, the excess is credit to "Paid in capital in…
Q: CanPro Co. is expecting that its dividend for this coming year will be $1.2 a share and that all…
A: Dividend is $1.2 Stock Price is $17 Growth rate is 3% Required return = Dividend×1+Growth rateStock…
Q: Assuming the cost of mortgage is $400,000, and the wner of the house makes a down payment of…
A: Mortgage $ 4,00,000.00 Down Payment $ 40,000.00 Interest Rate 8% Time Period (Years) 10
Q: The investor has R50,000 to invest A, B and C. R12,000 will be invested into asset A. The beta for…
A: The beta of the market is exactly equal 1 because it is the index against which all the other stocks…
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a…
A: Optimal risky portfolio is one which gives the highest risk to reward ratio and lies on the tangent…
Q: Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following…
A: Dollars/shares in millions FCF1 $ -14.00 FCF2 $ 30.00 FCF3 $ 47.00 Constant…
Q: Trading Corporation is considering issuing preferred stock. The preferred stock would have a par…
A: Preferred stock are type of hybrid security not debt and not equity and have both features. They do…
Q: ABC Inc. borrows $50,000 from a bank to finance its operations. Which of the following statements…
A: Solution:- When some amount is borrowed from bank, it has to be repaid along with interest.
Q: When evaluating projects using internal rate of return,? A. projects having lower early-year cash…
A: Internal rate of return is the rate of return at which the net present value is equal to zero.…
Q: Check Bandor Furniture pays a constant annual dividend. Last year, the dividend yield was 4.9…
A: Compute the amount of annual dividend, using the equation as shown below: Annual dividend=Stock…
Q: Ariel leased equipment worth $70,000 for 10 years. If the lease rate is 4.75% compounded monthly,…
A: Lease is amount paid to acquire the right to use the equipment during the life of assets. Lease are…
Q: ichelle Smith is planning on taking her family to Disney World in three (3) years’ time. She plans…
A: Future value of the money include the amount that is being deposited over the period and amount of…
Q: It's June, the stock price for CXY is$105.11. CXY does not pay dividends. The November put option on…
A: A put option is being traded in the market. We have to find the arbitrage strategy possible here.
Q: A $1000 par value 9% bond with semiannually coupons is callable 6 years after issue. The bond…
A: Par Value = $1,000 Coupon Rate = 9% Yield = 4% Time Period = 10 Years Callable = 6 Years
Narda's parents made P20,000 into an account that will earn an effective interest rate of 8% for 4 years and 6 months. Narda will be able to claim the maturity value of this fund after this term has elapsed.
But Narda insists to use an annual effective discount rate of 5% per year to find the present value of the amount she is supposed to receive at maturity. How much approximately is the present value calculated by Narda?
Step by step
Solved in 2 steps with 2 images
- To help out with her retirement savings, Rachel invests in an ordinary annuity that earns 7.8% interest, compounded annually. Payments will be made at end of each year. How much money does she need to pay into the annuity each year for the annuity to have a total value of $98.000 after 17 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.To help out with her retirement savings, Kaitlin invests in an ordinary annuity that earns 2.4% interest, compounded annually. Payments will be made at the end of each year. How much money does she need to pay into the annuity each year for the annuity to have a total value of s98,000 after 19 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.Ms. Boatright wants to withdraw $2000 from an account at the end of year 1, $4000 at the end of year 2, $5000 at the end of year 3, and $4,000 at the end of year 4. If she earns an interest rate of 8%, how much money will she need to deposit today to fully fund these withdrawals? How much money will be in her account after she makes the second withdrawal?
- To help with her retirement savings, Isabel invests in an ordinary annuity that earns 5.4% interest, compounded quarterly. Payments will be made at the end of each quarter. How much money does she need to pay into the annuity each quarter for the annuity to have a total value of 96,000 pesos after 19 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.Troy Long wishes to deposit a single sum of money in a savings account so that five equal annual withdrawals of $2,000 can be made before depleting the fund. If the first withdrawal is to occur 1 year after the deposit and the fund pays interest at a rate of 5% compounded annually, how much should he deposit? suppose the first withdrawal does not occur until 3 years after the deposit. How much should be deposited?Morgan has $500,000 accumulated in her RRSP and intends to use the amount to purchase a 20-year annuity. She is investigating the size of annuity payment she can expect to receive, depending on the rate of return earned by the undistributed funds. What nominal rate of return must the funds earn for the monthly payment to be: a. $3000? b. $3500? c. $4000
- At the time of her grandson's birth, a grandmother deposits $9000 in an account that pays 8% compounded monthly. What will be the value of the account at the child's twenty-first birthday, assuming that no other deposits or withdrawals are made during this period? Click the icon to view some finance formulas. The value of the account will be $ (Round to the nearest dollar as needed.)I need help working this problem out. Figuring out what table to use, whether to use: compound value, present value, amount of annuity, present value of annuity, sinking fund value? Please explain in detail each step. Nina deposits $3400 into a savings account earning simple interest at 6.3% annually. She intends to leave the money in the bank for three years. How much money, including both principal and interest, can she withdraw at the end of this time?To help out with her retirement savings, Linda invests in an ordinary annuity that earns 6.6% interest, compounded annually. Payments will be made at the end of each year. Continue How much money does she need to pay into the annuity each year for the annuity to have a total value of $97,000 after 17 years? Do not round intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas. 50°F Mostly cloudy Es O 2 2 W 0 3 E 4 X R O S F6 % 5 € T Y F8 & 7 a 7 U 27 D * 00 Submit Assignmen 2022 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center | Accessibility F10 D X I 9 2 F11 PDF F12 NumLk Prt Sc ^ Pause Br +
- Tanja wants to establish an account that will supplement her retirement income beginning 25 years from now. Find the lump sum she must deposit today so that $600,000 will be available at time of retirement, if the interest rate is 6%, compounded quarterly. How much must Tanja invest? P=$ (Round to the nearest cent as needed.)Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of P65,000, what recommendation would you make to Tandang SoraKaitlin wants to save money to purchase a car. She buys an annuity with yearly payments that earn 2.8% interest, compounded annually. Payments will be made at the end of each year. Find the total value of the annuity in 5 years if each yearly payment is $3797. Do not round any intermediate computations, and round your final answer to the nearest cent. If necessary, refer to the list of financial formulas.