Relationship in future value factor and present value factor

Reference no: EM1343903

1. How many years in a typical perpetuity?
2. What is the relationship between the future value factor for five years at 5 percent and the present value factor for five years at 5 percent?
3. If a business manager deposits $30,000 in a savings account at the end of each year for twenty years what will be the value of her investment: at a compound rate of 12 percent? at a compounded rate of 18 percent? What would the outcome be in both cases if the deposits were made at the beginning of each year?
4. The chief financial officer of a home health agency needs to determine the present value of a $10,000 investment received at the end of year 10. What is the present value if the discount rate is: a. 6 percent b. 9 percent c. 12 percent d. 15 percent?

Reference no: EM1343903

Questions Cloud

Calculate total rate of return on the bond : Consider a bond paying a coupon rate of 10 percent per year semiannually when the market interest rate is only 4 percent per half year. The bond has three year until maturity.

Nci-parent bonds from unaffiliated parties : At the beginning of the year, an 80 percent owned subsidiary acquired a parent's bonds from unaffiliated parties at a gain of $20,000.

Reasons for acquisitions in technology-telecommunications : Why do you think there have been so many acquisitions in the technology sector, the telecommunications sector and the regional banking sector?

Compute elasticity of trades with respect to demand function : Compute the elasticity of trades with respect to every inconsistent in the demand function.

Relationship in future value factor and present value factor : What is the relationship between the future value factor for five years at 5 percent and the present value factor for five years at 5 percent?

Information about merger evaluation : Calculate the firm's current cost of equity. Estimate the firm's cost of equity after it increases its leverage to 75% of equity.

Define aggressive financing strategy : What is an aggressive financing strategy? What are components of aggressive finance strategies?

Illustrate what is the size of the bank actual reserves : The ABC Bank of Bermuda has outstanding checkable deposits of $300,000 also a reserve ratio of 10%. If it has excess reserves of $15,000, illustrate what is the size of the bank's actual reserves.

Explain what would have been the amount of inventories : Explain what would have been the amount of inventories in 2011 if the 2010 turnover ratio had been maintained?

User Account

All Pages