About the present value

Assignment Help Financial Management
Reference no: EM131989864

1. For each of the following annuities, calculate the present value. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Annuity Payment Years Interest Rate $ $ 2,550 7 8 % 1,445 9 7 12,955 20 9 32,900 26 11

2. You deposit $1000 today, followed by $2000 one year from today and $3000 two years from today. The interest rate in the account is 9.9% compounded quarterly. How much will you have in three years’ time (three years from today)? $7081.23 $7063.91 $6405.80 $7039.98 $6000.00

Reference no: EM131989864

Questions Cloud

What is the bond expected return : What is the bond’s expected return, stated on an annual basis compounded annually?
Investor pays more or less than the amount calculated : What happens to the return if the investor pays more or less than the amount calculated?
Difference between dividends and interest expense : Difference between dividends and interest expense?
What will be the future value of the money at end of year : What will be the future value of the money at the end of the fifth year, that is, how money will you have in the account at the end of the fifth year?
About the present value : For each of the following annuities, calculate the present value.
What is the value of the investment today : What is the value of the investment today? What would the value be if the payments occurred for 76 years?
Business to show increased cash but decreased profits : Is it possible for a business to show increased profits but decreased cash? Is it possible for a business to show increased cash but decreased profits?
The young household is looking at buying house : The Young household is looking at buying a house. Which of these houses can they afford with a 30-year mortgage at an interest rate of 3.5%?
Why are there operating and capital budgets : Why does a budget document often provide several years of budgetary data? Why are there operating and capital budgets?

Reviews

Write a Review

Financial Management Questions & Answers

  Amount of interest that you will pay over the life of loan

If the loan has semiannual payments, what is the total amount of interest that you will pay over the life of the loan?

  Various types of financing costs and debt-to-equity ratio

Sauer Milk Inc wants to determine minimum cost of capital point for firm. What is relationship between various types of financing costs and debt-to-equity ratio

  Cost of equity for the new business using the CAPM

Suppose that firm A is considering entering a business similar to firm B, a relatively small firm in a single line of business. Firm A is currently financed with 65 % debt and 35 % equity. Firm B, the pure-play firm, has a β of 0.85 and is financed w..

  Maturity quoted at discount yield

How much would you pay for a U.S. Treasury bill with 112 days to maturity quoted at a discount yield of 2.50 percent? Assume a $1 million face value.

  Capital investment financial analysis problem

Design your own Capital Investment Financial Analysis problem, with all four steps included. The steps the text shows as capital decision making process are: 1. generation of project information, 2. evaluation of projects (solvency & costs),

  Calculate how much insurance coverage policy

When Carolina’s house burned down, she lost household items worth a total of $139,000. Her house was insured for $210,000 and her homeowner’s policy provided coverage for personal belongings up to 55 percent of the insured value of the house. Calcula..

  Keynesian theory of money demand

Compare, briefly, the Keynesian theory of money demand with that of Milton Friedman?

  What is the pre-tax cost of debt

Marvin’s Interiors issued 9-year bonds 2 years ago. The bonds have a face value of $1,700, a 6.0 percent, semiannual coupon, and a current market price of $1,339. What is the pre-tax cost of debt?

  While examining the current economic outlook

While examining the current economic outlook, we observe that the risk-free rate is 2% and the market risk premium is 4%. Given this information, which of the following statements is CORRECT?

  Has he reached the upper limit of debt obligations

What is Robert’s debt-to-equity ratio? Has he reached the upper limit of debt obligations? Yes or No?

  What is the companys target debt-equity ratio

Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is 15.5 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio?

  Support an efficient market hypotheses

What is evidence that does not support an efficient market hypotheses? What does the "Mount Fuji" chart describe?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd