Question

Wall :) A debt of RM22,000 will mature in 5 years time. Assuming money is worth 6% compounded semiannually. Calculate, i. th
0 0
Add a comment Improve this question Transcribed image text
Answer #1

= FV/(1+r)^n i Present value of Cashflow %3D FV = 22,000.00 r = (0.06/2) = 0.03 n = 5x2 =10 = 22,000 / (1+.03)^10) Present va

Add a comment
Know the answer?
Add Answer to:
Wall :) A debt of RM22,000 will mature in 5 years' time. Assuming money is worth...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • JESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly...

    JESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly so as to accumulate RM8,888 in 3 years, DOES (3 marks b) Compute the interest earned if RM9,600 is invested for 8 years at 8.8% compound quarterly. (5 mar! =) A debt of RM22,000 will mature in 5 years' time. Assuming money is worth 6% compounded semiannually. Calculate, i. the present value of this debt, (3 m ii. the value of this debt at...

  • QUESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly...

    QUESTION 2 (22 marks) a) Compute the sum to be invested now at 12% compounded monthly so as to accumulate RM8,888 in 3 years. (3 marks) b) Compute the interest earned if RM9,600 is invested for 8 years at 8.8% compounded quarterly. (5 marks) c) A debt of RM22,000 will mature in 5 years' time. Assuming money is worth 6% compounded semiannually. Calculate, i. the present value of this debt, ii. the value of this debt at the end of...

  • Problems The following are exercises in future (terminal) values: a. At the end of three years,...

    Problems The following are exercises in future (terminal) values: a. At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? b. At the end of five years, how much is an initial $500 deposit followed by five year-end, annual $100 payments worth, assuming a compound annual interest rate of (i) 10 per- cent? (ii) 5 percent? (iii) 0 percent?...

  • Present Value Computations Assuming that money is worth 8%, compute the present value of Round answers...

    Present Value Computations Assuming that money is worth 8%, compute the present value of Round answers to the nearest whole number. 1. $7,000 received 15 years from today. 2. The right to inherit $1,000,000 14 years from now. 3. The right to receive $1,000 at the end of each of the next six years. 4. The obligation to pay $3,000 at the end of each of the next 10 years. 5. The right to receive $5,000 at the end of...

  • USING discount time value of money and assuming the rate the rat of iz 10% find...

    USING discount time value of money and assuming the rate the rat of iz 10% find the ent the pro present at PW of the Fw line worth the end find worth and future value 17 the indiuntual shich Compromises years) of the following cash flow diagram engineering project, which compromised flows and annuities A. Use the compounding tables to show Calculations. Cash factor show your calculation. A=$3,000 PW? A: time series Credits FW? 2.15 16 17 yearends 0 1...

  • Inflow Value QUESTION 5: The Time Value of Money alue Make use of the relevant interest...

    Inflow Value QUESTION 5: The Time Value of Money alue Make use of the relevant interest and discount values provided below to determine: i) the future value (FV) of a principal of N$10 000 which you invest at 12% interest, compounded for five (5) years. ii) the present value (PV) of an amount of N$10 000, which is receivable in five (5) years from now, when the cost of capital is 12%. III) the annual deposit which is required to...

  • Please show work 10. 8 If money is worth j 8%, what single replace $1000 due today plus a $2000 debt due at the end of...

    Please show work 10. 8 If money is worth j 8%, what single replace $1000 due today plus a $2000 debt due at the end of 4 years with interest at 123% per annum compounded semi-annually? sum of money payable at the end of 2 years will equitably 10. 8 If money is worth j 8%, what single replace $1000 due today plus a $2000 debt due at the end of 4 years with interest at 123% per annum compounded...

  • QUESTION 5 Ali earned a return on his investment worth $4,212. Calculate the money he invested...

    QUESTION 5 Ali earned a return on his investment worth $4,212. Calculate the money he invested ten years ago? Interest rate was fixed at 12%, compounded annually. (Hint: Return on Investment (ROI) = Total future worth of invested money - present worth of money invested) CA. $1,000 B. $2,000 C. $2,058 D. $1,356 QUESTION 6 A $24,000 student-loan debt was placed at the end of Peter's college career with the interest rate of 1% per month. How many months will...

  • 16. Suppose $15,000 is invested at an annual rate of 5% for 12 years. Find the...

    16. Suppose $15,000 is invested at an annual rate of 5% for 12 years. Find the compounded amount interest is compounded as follows. a.) Annually b.) Semiannually c.) Quarterly d.) Monthly 17. Find the present value of each compounded amount: a.) $42000 in 7 years, 6% compounded monthly. b) $17,650 in 4 years, 4% compounded quarterly. c.) S 1347.89 in 3 years, 5.5% compounded semiannually. 18. Find the future value of each annuity. a.) S 1288 deposited at the end...

  • 1. Calculate the present value of $50,000 to be received in 15 years assuming an annual...

    1. Calculate the present value of $50,000 to be received in 15 years assuming an annual interest rate of 6%. 2. Calculate the present value of $1,000,000 to be received in 20 years assuming an annual interest rate of 5%, compounded monthly. 3. Calculate the future value of $1,000 invested for 5 years assuming an annual interest rate of 20%. 4. Calculate the future value of $12,000 invested for 18 years assuming an annual interest rate of 12%, compounded monthly....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT