What is an ordinary annuity when do the cash flows to an

Reference no: EM13392403

1. Eddie's Yachts borrows $200,000 to be paid off in four years. The loan payments are semiannual with the first payment due in six months, and interest is at 6%. What is the amount of each payment?

2. Camsung Manufacturers has signed a contract to purchase equipment. The contract requires Camsung to pay $3,000 at the end of each quarter for the next three years. Because Camsung is a relatively risky company, it would have to pay 10% annual interest if it borrowed the money from a local bank. On the acquisition date, at what amount should the new asset be valued on the balance sheet of Camsung Manufacturer's?

3. Michael wants to buy a new boat in about fuve years. He can afford to set aside $4,200 at the end of each year for the next 5 years. How much will Michael have at the end of five years if he earn 4% on his savings?

4. Define the present value of a single sum.

5. You decide you want to remodel your bathroom in three years. Based on estimates you have obtained you will need $8,000. How much will you have to deposit in the bank today at 6% interest to get the needed amount?

6. If the same amount is to be received or paid each period, the series of cash flows is referred to as what?

7. What is an ordinary annuity?

8. When do the cash flows to an annuity due begin?

9. If you deposit $10,000 in a savings account and leave it alone what will be the balance in your savings account at the end of eight years at 4% interest?

10. Johnson Products sold merchandise to Pro Inc., on September 30, 2011. Payment was made in the form of a non-interest bearing note requiring Pro to pay $100,000 on september 30, 2013. Assume that a 9% interest rate properly reflects the time value of money in this situation. Calculate the amount at which Johnson should record the note receivable and corresponsing sales revenue on September 30,2011.

Reference no: EM13392403

Questions Cloud

Write down some reasons you might consider data or : write a 350-word response answering the following questionwhat are some reasons you might consider data or information

The firm is considering switching to a 47 percent debt : gtb inc. has a 33 percent tax rate and has 90 million in assets currently financed entirely with equity. equity is

Compute growth rates log difference of per capita gdp for : calculate the growth rates log difference of per capita gdp for each country in each year. calculate the mean and

Prioritize the major impediments to quality health services : 1.using the cardinal rules of medical ethics as a base design a policy that you would implement as an administrator of

What is an ordinary annuity when do the cash flows to an : 1. eddies yachts borrows 200000 to be paid off in four years. the loan payments are semiannual with the first

Describe the internets effects on planning by how it : sources must be cited in apa format. your response should be a minimum of one 1 single-spaced page to a maximum of two

Compare the major functions of accountant to that of : write a two to three 2-3 page paper in which youdescribe the purpose of each financial statement. determine which one 1

A summary of the internal environment including the : using the internet find an organization you would be interested in working for or that is of interest to you

Compute monopolists profit under the following conditions : calculate the monopolists profit under the following conditions. the intersection of the marginal revenue and marginal

User Account

All Pages