Homework Answers
Rate of interest = R = 8% per year
Lets say amount now is P. To become triple in value, it must become 3P
Formula to calculate interest using simple interest formula = (P*R*N) / 100
where P is amount invested
R = Interest rate
N = Number years
Total payment after N years would be: P + Interest earned
3P = P + (P*R*N) / 100
2P = 0.08 * P * N
N = 25 years
Option A is correct.
Add Answer to:
Question 15 (6 points) The length of time required for money to triple in value at...
Calculator Mastery Problem: Time Value of Money Time value of money Due to both interest earnings...
Calculator Mastery Problem: Time Value of Money Time value of money Due to both interest earnings and the fact that money put to good use should generate additional funds above and beyond the original investment, money tomorrow will be worth less than money today. Simple interest Bolden Co., a company that you regularly do business with, gives you a $19,000 note. The note is due in three years and pays simple interest of 9% annually. How much will Bolden pay...
5. (8 points) Calculate the following time value of money problems.a. What is the future value...
5. (8 points) Calculate the following time
value of money problems.a. What is the future value of 22 periodic
payments of $7,520 each made at the beginning of each period and
compounded at 8% per period?b. What would you pay for a $500,000
face value bond that matures in 15 years and pays $40,000 a year in
interest (end-of-period payments) if you wanted to earn a yield of
9%.c. Mike Finley wishes to become a millionaire. His money market
fund...
5. (8 points) Calculate the following time value of money problems.a. What is the future value...
5. (8 points) Calculate the following time
value of money problems.a. What is the future value of 22 periodic
payments of $7,520 each made at the beginning of each period and
compounded at 8% per period?b. What would you pay for a $500,000
face value bond that matures in 15 years and pays $40,000 a year in
interest (end-of-period payments) if you wanted to earn a yield of
9%.c. Mike Finley wishes to become a millionaire. His money market
fund...
4) How long will it take your money to triple if you receive 10% return on...
4) How long will it take your money to triple if you receive 10% return on your money, compounded annually? 5) If your money doubled in 7 years, what was the interest rate you received if compounded annually? 6) If you had two investment opportunities, A -8% compounded annually or B - 8.25% simple interest, which would you choose over a ten-year horizon?
Please answer these 3 questions. Question 13 (6 points) **The Present Value (value in year 0)...
Please answer these 3 questions.
Question 13 (6 points) **The Present Value (value in year 0) of MT Company's cash flows listed below at a compound interest rate of 14% per year is: Year 0 1 2 3 4 5 6 Cash Flow ($) 0 0 0 +500 +500 +500 +500 Comments: Before starting calculations, make sure you can see all the cash flows in the table from year 0 to 6. All the answers listed were calculated based on...
Assignment 05 - Time Value of Money 1. Simple versus compound interest А. Аа Financial contracts...
Assignment 05 - Time Value of Money 1. Simple versus compound interest А. Аа Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Heather plans to loan $900 to her friend, who will pay a simple interest rate of 8.2% every year for the loan. If no payments are made and no further borrowing occurs between them for five...
2. Future value Aa Aa E The principal of the time value of money is probably...
2. Future value Aa Aa E The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? T O The interest rate (1) that...
I need help on question 2. MODULE IV: TIME VALUE OF MONEY INTRODUCTION The time value...
I need help on question 2.
MODULE IV: TIME VALUE OF MONEY INTRODUCTION The time value of money analysis has many a lysis has many applications, ranging from setting hedules for paying off loans to decisions about whether to invest in a partie financial instrument. First, let's define the following notations: I = the interest rate per period Na the total number of payment periods in an annuity PMT = the annuity payment made each period PV = present value...
5. (8 points) Calculate the following time value of money problems. a. What is the future...
5. (8 points) Calculate the following time value of money problems. a. What is the future value of 22 periodic payments of $7,520 each made at the beginning of each period and compounded at 8% per period? b. What would you pay for a $500,000 face value bond that matures in 15 years and pays $40,000 a year in interest (end-of-period payments) if you wanted to earn a yield of 9%. C. Mike Finley wishes to become a millionaire. His...
Time Value of Money The following situations test your comprehension of time value of money concepts....
Time Value of Money The following situations test your comprehension of time value of money concepts. You will need your financial calculator. For each problem write the variable from the problem next to the variable in your calculator menu. Put a question mark next to the variable we are solving for, and put the answer to that variable on the “Answer” line. Remember that there has to be a negative number in your calculations for the formulas to work. If...
Calculator Mastery Problem: Time Value of Money Time value of money Due to both interest earnings and the fact that money put to good use should generate additional funds above and beyond the original investment, money tomorrow will be worth less than money today. Simple interest Bolden Co., a company that you regularly do business with, gives you a $19,000 note. The note is due in three years and pays simple interest of 9% annually. How much will Bolden pay...
5. (8 points) Calculate the following time
value of money problems.a. What is the future value of 22 periodic
payments of $7,520 each made at the beginning of each period and
compounded at 8% per period?b. What would you pay for a $500,000
face value bond that matures in 15 years and pays $40,000 a year in
interest (end-of-period payments) if you wanted to earn a yield of
9%.c. Mike Finley wishes to become a millionaire. His money market
fund...
5. (8 points) Calculate the following time
value of money problems.a. What is the future value of 22 periodic
payments of $7,520 each made at the beginning of each period and
compounded at 8% per period?b. What would you pay for a $500,000
face value bond that matures in 15 years and pays $40,000 a year in
interest (end-of-period payments) if you wanted to earn a yield of
9%.c. Mike Finley wishes to become a millionaire. His money market
fund...
4) How long will it take your money to triple if you receive 10% return on your money, compounded annually? 5) If your money doubled in 7 years, what was the interest rate you received if compounded annually? 6) If you had two investment opportunities, A -8% compounded annually or B - 8.25% simple interest, which would you choose over a ten-year horizon?
Please answer these 3 questions.
Question 13 (6 points) **The Present Value (value in year 0) of MT Company's cash flows listed below at a compound interest rate of 14% per year is: Year 0 1 2 3 4 5 6 Cash Flow ($) 0 0 0 +500 +500 +500 +500 Comments: Before starting calculations, make sure you can see all the cash flows in the table from year 0 to 6. All the answers listed were calculated based on...
Assignment 05 - Time Value of Money 1. Simple versus compound interest А. Аа Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Heather plans to loan $900 to her friend, who will pay a simple interest rate of 8.2% every year for the loan. If no payments are made and no further borrowing occurs between them for five...
2. Future value Aa Aa E The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? T O The interest rate (1) that...
I need help on question 2.
MODULE IV: TIME VALUE OF MONEY INTRODUCTION The time value of money analysis has many a lysis has many applications, ranging from setting hedules for paying off loans to decisions about whether to invest in a partie financial instrument. First, let's define the following notations: I = the interest rate per period Na the total number of payment periods in an annuity PMT = the annuity payment made each period PV = present value...
5. (8 points) Calculate the following time value of money problems. a. What is the future value of 22 periodic payments of $7,520 each made at the beginning of each period and compounded at 8% per period? b. What would you pay for a $500,000 face value bond that matures in 15 years and pays $40,000 a year in interest (end-of-period payments) if you wanted to earn a yield of 9%. C. Mike Finley wishes to become a millionaire. His...
Most questions answered within 3 hours.
-
Suppose Acap Corporation will pay a dividend of $2.87 per share
at the end of this...
asked 1 second from now -
Scientists make earthquake forecasts using data from:
A.
geodesy
B.
seismology
C.
geology
D.
paleoseismology
E....
asked 2 minutes ago -
Employee training can
be defined as planned organizational efforts to help employees
learn job-related knowledge, skills,...
asked 1 hour ago -
Which for loop is implemented correctly in Java?
Group of answer choices
for (i = 0...
asked 1 hour ago -
Required information
[The following information applies to the questions
displayed below.]
In 2019, Alliant Corporation acquired...
asked 2 hours ago -
How much must I invest today if I want to withdraw 1/3 of my
original investment...
asked 4 hours ago -
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 5 hours ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 6 hours ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 6 hours ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 6 hours ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 6 hours ago -
A chemist requires 0.422 mil Na2CO3 for a reaction. How many
grams does this correspond to?
asked 6 hours ago