4. A perpetuity paying $100 on the last day of each year was purchased on January 1, 2000. On Jan...
Homework Answers
rate convertible annually=((1+6%/12)^(12/1)-1)*1=6.17%
rate convertible semi-annually=((1+6%/12)^(12/2)-1)*2=6.08%
X/(6.08%/2)*(1-1/(1+6.08%/2)^(2*15))*(1+6.08%/2)=100/6.17%
=>X=100/6.17%*(6.08%/2)/(1-1/(1+6.08%/2)^(2*15))*1/(1+6.08%/2)
=>X=80.66513539
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4. A perpetuity paying $100 on the last day of each year was purchased on January 1, 2000. On Jan...
Math Interest Theory/ Financial Math Please Use Formulas 6. (3pts) A perpetuity paying 100 at the...
Math Interest Theory/ Financial Math
Please Use Formulas
6. (3pts) A perpetuity paying 100 at the end of each 4-month period has a present value of 5000. What is the present value of an annuity paying 100 at the end of every 3 year for 30 years, assuming the same effective interest rate? (Answer: 426.33) 7 (2nts) There is $10 000 in a fund which is c l etin 40/ -
Math Interest Theory/ Financial Math Please Use Formulas 1. (4pts) Find the present value, 2 years...
Math Interest Theory/ Financial Math
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1. (4pts) Find the present value, 2 years before the first payment is made, of an inheritance of twenty-year annuity, on which payments are $100 at the beginning of each quarterly year, assuming a nominal rate of interest of 6% convertible monthly, by (1) finding the equivalent interest rate convertible at the same frequency as payments. (2) using the formula ("Fission" method). (Answer: $4,169.15)
Craig borrows 6000 dollars a year to pay for college expenses, starting on September 1, 2000 - the day he starts college - and ending on September 1, 2004. (i.e. that's 5 withdrawals total). After...
Craig borrows 6000 dollars a
year to pay for college expenses, starting on September 1, 2000 -
the day he starts college - and ending on September 1, 2004. (i.e.
that's 5 withdrawals total). After graduation, he decides to go to
graduate school in mathematics, and his loans are deferred (i.e.
they still accrue interest, but no payments are due). After
graduation from graduate school, he needs to begin paying off his
loans. He will make monthly payments for 7...
On January 1,the first day of the fiscal year, Murray Company issues a $1,000,000, 5%, five-year...
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On January 1,the first day of the fiscal year, Murray Company issues a $1,000,000, 5%, five-year...
On January 1,the first day of the fiscal year, Murray Company issues a $1,000,000, 5%, five-year bond, receiving cash of $947,560. The bond pays interest semiannually on June 30 and December 31, and is amortized semiannually suing the straight-lien method. A. Journalize the issuance of the bond on January 1. (Note: Journal entry needs to show date) B. Journalize the semiannual interest payments on the June 3 and December 31 of the first year. The bond discount amortization is combined...
c. $6,000 d. $30,000 18. Last year, TSU purchased a life annuity for $72,000. The annuity pays equal annual installments of $ 8,000 beginning January 1 of the current year. TSU's life expecta...
c. $6,000 d. $30,000 18. Last year, TSU purchased a life annuity for $72,000. The annuity pays equal annual installments of $ 8,000 beginning January 1 of the current year. TSU's life expectancy is 12 years. What is the taxable portion of each payment? a. $2000 b. $3000 c. $4000 d. I need more information
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On January 1, Year 1, 50 bonds, each valued at $1,000, 8% stated rate, were purchased...
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Math Interest Theory/ Financial Math
Please Use Formulas
6. (3pts) A perpetuity paying 100 at the end of each 4-month period has a present value of 5000. What is the present value of an annuity paying 100 at the end of every 3 year for 30 years, assuming the same effective interest rate? (Answer: 426.33) 7 (2nts) There is $10 000 in a fund which is c l etin 40/ -
Math Interest Theory/ Financial Math
Please Use Formulas
1. (4pts) Find the present value, 2 years before the first payment is made, of an inheritance of twenty-year annuity, on which payments are $100 at the beginning of each quarterly year, assuming a nominal rate of interest of 6% convertible monthly, by (1) finding the equivalent interest rate convertible at the same frequency as payments. (2) using the formula ("Fission" method). (Answer: $4,169.15)
Craig borrows 6000 dollars a
year to pay for college expenses, starting on September 1, 2000 -
the day he starts college - and ending on September 1, 2004. (i.e.
that's 5 withdrawals total). After graduation, he decides to go to
graduate school in mathematics, and his loans are deferred (i.e.
they still accrue interest, but no payments are due). After
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loans. He will make monthly payments for 7...
Use the following to answer questions 20 - 24 On January 1, year 1, AJ borrows $41,000 to purchase a new vehicle by agreeing to a 4.0%, 6-year loan with the bank. Payments are due at the end of each month with the first installment (vehicle payment) due on January 31, year 1. After completing the problem, ROUND YOUR ANSWERS TO THE NEAREST DOLLAR. IMPORTANT!!!! when inputting the monthly interest rate DO NOT ROUND IT (use the math function in...
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