Recently Asked

Using the appropriate PV Table and assuming a 12% annual interest rate, determine the present value on December 31, 2009 of a five period annual annuity of 10000 under each of the following situations: a. The first payment is received on December 31, 2010, and interest is compounded annually. b. The first payment is received

Sandy Shores inc plans to make four annual deposits of 5000.00 each to a special fund at the beach museum. The fund assets will be invested and the expected rate of return will be 8%. Using the appropriate tabels determine how much will be accumulated in teh fund on December 31, 2012 under each of

1. The CEO of a highly profitable company, noticing that the excess cash not needed to fund business operations has accumulated in a company bank account that pays no interest, contemplates declaring and paying a cash dividend to common shareholders before year’s end. The likely effect of paying the dividend would be to A. have

30. Your brother has offered to give you $100, starting next year, and after that growing at 3% for the next 20 years. You would like to calculate the value of this offer by calculating how much money you would need to deposit in the local bank so that the account will generate the same

Mary and Joe would like to save up $10,000 by the end of 3 years from now to buy new furniture for their home. They currently have $1,500. in a saving account set aside for the furniture. They would lide to make 3 equal year end deposit to this savings account to pay for the

Question 24 Mr. Jones plans to deposit $500 at the end of each month for 10 years at 12% annual interest, compounded monthly. The amount that will be available in two years is a. $13,000 b. $13,500 c. $14,000 d. $14,500 Question 25 At what rate of annual interest will an investment quadruple itself in

Using the appropriate interest table

Saturday, 30 August 2014 by

Using the appropriate interest table, answer each of the following questions. (Each case is independent of the others.) (a) What is the future value of $7,000 at the end of 5 periods at 8% compounded interest? (b) What is the present value of $7,000 due 8 periods hence, discounted at 11%? (c) What is the

1. A company has collection centers across the country to speed up collections. The company also makes its disbursements from remote disbursement centers. The collection time has been reduced by two days and disbursement time increased by one day because of these policies. Excess funds are being invested in short-term instruments yielding 12 percent per

You have just won the lottery and just elected to receive $50,000 per year for 20 years. Assume that a 4 percent interest rate is used to evaluate the annuity and that you receive each payment at the beginning of the year. a) What is the present value of the lottery? b) How much interest

Calculate the monthly mortgage payment made at the beginning of each month on a $100,000 mortgage. The mortgage is for 15 years and the interest rate is 5.5 percent.