User Account

All Pages

Calculate the upfront amount that he would receive

Assignment Help Accounting Basics
Reference no: EM132536378

Question 1 - Jacob won a lottery that would pay him $40,000 in 2 years and $8,300 in 6 years. The lottery company had another option where he could get an upfront amount now and another $9,800 in 2 years.

Calculate the upfront amount that he would receive now from the second option, assuming that money is worth 4.00% compounded semi-annually.

Question 2 - Brian was supposed to make a payment of $3,750 in 1 year and another payment for $1,500 in 6 years to Maroon Inc. as part of a payment plan. Instead, he is trying to reach an agreement with the company where he would settle both payments in 5 years. Assume that money is worth 3.83% compounded semi-annually.

a. Calculate the equivalent value of the $3,750 payment and the $1,500 payment today.

b. Calculate the size of the payment required in 5 years to settle the amount.

Reference no: EM132536378

Questions Cloud

Prevents the chairlift from reversing directions : If a chairlift at a ski hill stops part way up the hill due to engine failure, a brake system prevents the chairlift from
What is the value of the non-interest-bearing note : On January 1, 2018, PT XYZ sold 50 trucks at a price of Rp.30,000,000,000. What is the value of the non-interest-bearing note received by the company
Leadership theories-managerial-democratic and autocratic : Create a chart comparing at least 3 leadership theories (Managerial, democratic and autocratic) presented in this week's reading. In next week's assignment
What is the accumulated value of the investments : Natalie opened an RRSP account and deposited $2,600 into it. What is the accumulated value of the investments at the end of the 2nd year
Calculate the upfront amount that he would receive : Calculate the upfront amount that he would receive now from the second option, assuming that money is worth 4.00% compounded semi-annually
What the materials price variance for june is : Gilder Corporation,What The materials price variance for June is? The company reported the following results concerning this product in June.
Identify powerful woman leader from another culture : Identify a powerful woman leader from another culture whom you think is highly effective. How did she obtain her position of power?
Prepare Masons Trading account for the year ended Dec : During the year cheque received from customers amounted to $3700 Cheque paid to suppliers amounted to $2500. Prepare Masons Trading account for year ended Dec
Investigate the criticisms of hypothesis testing : Your task is to assess the value of hypothesis testing. This will require you to investigate the criticisms of hypothesis testing.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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