Homework Answers
1. As the risk free rate is 5%
This will be the discounting rate for 3 years.
The rate of 4% represents the risk factor of uncertainity on payment of amount but it doesn't affect the worth of money.
Therefore, the formula will be
PV= 7000*PV(3,5%)
2. PV = 7000*0.8638
= 6047
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need answer to 21
(continued from the previous question) Which of the following is (approximately) the...
Question 22 (5 points) All else being equal that is, identical present value, identical number of...
Question 22 (5 points) All else being equal that is, identical present value, identical number of periods and identical interest rate), the periodic payment of an ordinary annuity will be higher than the payment of an annuity due. True False Page 17 of 20 Previous Page Next Page Question 20 (5 points) You have been sued. If you lose the case, you will have to pay $10,000 three years from now. If you win the case, you will not pay...
(continued from the previous question) Which of the following statements are correct about the problem you...
(continued from the previous question) Which of the following statements are correct about the problem you solved in the previous question? (select all that apply - i.e. just one or as many as all of them) If the retirement account had earned 2% instead of 4%, on 12/31/15 you would have collected a higher amount. If you had contributed $7,000 per year instead of $5,000, on 12/31/15 you would have collected a higher amount. If you redo the problem using...
need 19 answer (continued from the previous question) Which of the following stateme about the journal...
need 19 answer
(continued from the previous question) Which of the following stateme about the journal entries recorded by your company? (select all that apply - i.e. just one or as many as all of them) On 1/1/X1, a contra-asset account is credited As a consequence of the journal entries recorded on 1/1/X1, net assets increase by 82,645 As a consequence of the journal entries recorded on 1/1/X1, net assets increase by 100,000 A contra-asset is credited 12 months after...
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...
Answer each of the following questions, which are independent from each other. For all time value...
Answer each of the following questions, which are independent
from each other.
For all time value of money calculations, use time value of
money factors with at least 4 decimal places and do not round
intermediate calculations; instead, only round your final answer to
the nearest whole number.
1. What is the cash payback period on Model DQT (rounded to two
decimal places)?
2. What is the cash payback period on Model MK6 (rounded to two
decimal places)?
3. What...
Time Value of Money Spreadsheet Example 4 Module IV Name: Date: 6 7 8 Question 1 9 Question 2 10 Question 3 11 Question...
Time Value of Money Spreadsheet Example 4 Module IV Name: Date: 6 7 8 Question 1 9 Question 2 10 Question 3 11 Question 4 12 Question 5 13 Question 6 14 Question 7 15 Question 8 16 Question 9 17 Question 10 18 19 20 Single Amount or Annuity 21 Periodic Interest Rate 22 Number of Periods 23 24 25 Present Value of Single Amount 26 27 Future Value of Single Amount 28 29 Future Value of An Annuity...
THE QUESTION IS THAT I NEED A NARRATIVE ANALYSIS.............ON PROBLEM 3. I HAVE THE ANSWER I...
THE QUESTION IS THAT I NEED A NARRATIVE ANALYSIS.............ON
PROBLEM 3.
I HAVE THE ANSWER I NEED THE NARRATIVE ANALYSIS AND WHAT WOULD
YOU RECOMMEND TO THE COMPANY.
PLEASE DO NOT WRITE OUT THE ANSWER THAT I ALREADY HAVE.
How many years will it take for $197 million to grow to be $554
million if it is invested in an account with a quoted annual
interest rate of 5 percent with monthly compounding of
interest?
Question 1 Monev at the...
answer both Page 9 of 22 which of the fo will be received he following is...
answer both
Page 9 of 22 which of the fo will be received he following is the formula for finding the present value of an amount M that received one year from now, when the interest rate is R? dosso M*(1 + R/100) MX (1+R) M/(1 + R) M/R M/(100R) 19. Your uncle wants to help you with your college expenses, and he promised to pay you $10,000 next year and $15,000 in two years. The current interest rate is...
FALSE (Please marka Tor Fon your answer sheet) 21. A non-forfeite option in which the cash...
FALSE (Please marka Tor Fon your answer sheet) 21. A non-forfeite option in which the cash value is used to keep the full death benefit in force possible is called the extended term opcion. The installation of ww w sprinkler we in a hotel is an example of a loss reducto dath benefit in force for as long as hotel is an example of a loss reduction method of Requiring retailers who sella 's pode r ing the firm from...
The correct answer is underneath the question, but I have no idea how to get the...
The correct answer is underneath the question, but I have no
idea how to get the correct answer. Please post the work and the
steps in getting the correct answer.
You manage a pension fund. The fund promises to pay out $10 million in 5 years. You buy $7472582 worth of par-value bonds that pay 6% annually and mature in 8 years. 5 years from now, when you need to pay your pensioners, the market rate on same-risk bonds is...
Question 22 (5 points) All else being equal that is, identical present value, identical number of periods and identical interest rate), the periodic payment of an ordinary annuity will be higher than the payment of an annuity due. True False Page 17 of 20 Previous Page Next Page Question 20 (5 points) You have been sued. If you lose the case, you will have to pay $10,000 three years from now. If you win the case, you will not pay...
(continued from the previous question) Which of the following statements are correct about the problem you solved in the previous question? (select all that apply - i.e. just one or as many as all of them) If the retirement account had earned 2% instead of 4%, on 12/31/15 you would have collected a higher amount. If you had contributed $7,000 per year instead of $5,000, on 12/31/15 you would have collected a higher amount. If you redo the problem using...
need 19 answer
(continued from the previous question) Which of the following stateme about the journal entries recorded by your company? (select all that apply - i.e. just one or as many as all of them) On 1/1/X1, a contra-asset account is credited As a consequence of the journal entries recorded on 1/1/X1, net assets increase by 82,645 As a consequence of the journal entries recorded on 1/1/X1, net assets increase by 100,000 A contra-asset is credited 12 months after...
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...
Answer each of the following questions, which are independent
from each other.
For all time value of money calculations, use time value of
money factors with at least 4 decimal places and do not round
intermediate calculations; instead, only round your final answer to
the nearest whole number.
1. What is the cash payback period on Model DQT (rounded to two
decimal places)?
2. What is the cash payback period on Model MK6 (rounded to two
decimal places)?
3. What...
Time Value of Money Spreadsheet Example 4 Module IV Name: Date: 6 7 8 Question 1 9 Question 2 10 Question 3 11 Question 4 12 Question 5 13 Question 6 14 Question 7 15 Question 8 16 Question 9 17 Question 10 18 19 20 Single Amount or Annuity 21 Periodic Interest Rate 22 Number of Periods 23 24 25 Present Value of Single Amount 26 27 Future Value of Single Amount 28 29 Future Value of An Annuity...
THE QUESTION IS THAT I NEED A NARRATIVE ANALYSIS.............ON
PROBLEM 3.
I HAVE THE ANSWER I NEED THE NARRATIVE ANALYSIS AND WHAT WOULD
YOU RECOMMEND TO THE COMPANY.
PLEASE DO NOT WRITE OUT THE ANSWER THAT I ALREADY HAVE.
How many years will it take for $197 million to grow to be $554
million if it is invested in an account with a quoted annual
interest rate of 5 percent with monthly compounding of
interest?
Question 1 Monev at the...
answer both
Page 9 of 22 which of the fo will be received he following is the formula for finding the present value of an amount M that received one year from now, when the interest rate is R? dosso M*(1 + R/100) MX (1+R) M/(1 + R) M/R M/(100R) 19. Your uncle wants to help you with your college expenses, and he promised to pay you $10,000 next year and $15,000 in two years. The current interest rate is...
FALSE (Please marka Tor Fon your answer sheet) 21. A non-forfeite option in which the cash value is used to keep the full death benefit in force possible is called the extended term opcion. The installation of ww w sprinkler we in a hotel is an example of a loss reducto dath benefit in force for as long as hotel is an example of a loss reduction method of Requiring retailers who sella 's pode r ing the firm from...
The correct answer is underneath the question, but I have no
idea how to get the correct answer. Please post the work and the
steps in getting the correct answer.
You manage a pension fund. The fund promises to pay out $10 million in 5 years. You buy $7472582 worth of par-value bonds that pay 6% annually and mature in 8 years. 5 years from now, when you need to pay your pensioners, the market rate on same-risk bonds is...
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