What is the future value of ordinary annuity

Assignment Help Financial Management
Reference no: EM131835120

1. What is the future value of a 16-year ordinary annuity with annual payments of $64,000, evaluated at a 8.0 percent interest rate? Round it to two decimal places, and do not include the $ sign, e.g., 123456.54.

2. Mary Ott is going to borrow $7,300 for 90 days and pay $221 interest. What is the effective rate of interest if the loan is discounted? (***Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Reference no: EM131835120

Questions Cloud

Estimate the expected growth rate : Caballos, Inc., has a debt to capital ratio of 24%, a beta of 1.5 and a pre-tax cost of debt of 6%. Estimate the Expected Growth Rate.
Prepare thorough ratio analysis : Prepare a thorough ratio analysis (using as a minimum the applicable ratios from the textbook) for both UPS and FedEx.
Assume that the firm is in stable growth : Assume that the firm is in stable growth, and that the return on capital and reinvestment rates for the last fiscal year can be sustained forever.
What is present value of your windfall : What is the present value of your windfall if the appropriate discount rate is 10 percent?
What is the future value of ordinary annuity : What is the future value of a 16-year ordinary annuity with annual payments of $64,000, evaluated at a 8.0 percent interest rate?
What is the difference in annual inflation rates : Suppose the current exchange rate for the Polish zloty is zl 2.83. What is the difference in the annual inflation rates for the United States and Poland over th
How much will rebecca have to deposit today so that parents : how much will Rebecca have to deposit today so that her parents are paid $150 at the end of each month?
What is your best guess as to the rate of return on stock : what is your best guess as to the rate of return on the stock?
Monthly compounding on college savings plan : If he can earn 7 percent APR with monthly compounding on a college savings plan, how much does he have to invest every month for the next 8 years?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the pretax required return on gordon stock

The Gecko Company and the Gordon Company are two firms whose business risk is the same but that have different dividend policies. Gecko pays no dividend, whereas Gordon has an expected dividend yield of 3 percent. Suppose the capital gains tax rate i..

  What would be the monthly lease payment to remain even

What is the customer's equivalent monthly cost of leasing an airplane?  - What would be the monthly lease payment to remain even?

  Labor rate and efficiency variances

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Budgeted Actual Sales (3,000 pools) $ 210,000 $ 210,000 Variable ..

  The expected rate of return on the market

Assume that the risk-free rate of interest is 6% and the expected rate of return on the market is 17%. A share of stock sells for $57 today. It will pay a dividend of $4 per share at the end of the year. Its beta is 1.1. What do investors expect the ..

  What is their yield to maturity-what is their yield to call

Yield to Maturity and Call with Semiannual Payments Thatcher Corporation's bonds will mature in 11 years. The bonds have a face value of $1,000 and an 9% coupon rate, paid semiannually. The price of the bonds is $1,050. The bonds are callable in 5 ye..

  While evaluating capital budgeting projects

While evaluating capital budgeting projects, ABC Corporation has calculated their retained earnings breakpoint to be $45 million. What does this mean?

  Formulate and justify an investment policy statement

Formulate and justify an investment policy statement setting forth the appropriate guidelines within which future investment actions should take place.

  Describe how you would respond as a customer

Suppose that your bank imposes the following fees and/ or service charges. Explain the bank's rationale and describe how you would respond as a customer. a. $ 1.50 per item for use of an ATM run by an entity other than your own bank b. $ 4 per transa..

  Is this put option in or out of the money

A put option on Macrohard stock with a strike price of $36 has a time value of $1.50, and a premium of $4.00. What must be the price of the stock? Show your calculations. Is this put option in or out of the money? Explain.

  What methodology can molly use to develop financial forecast

She is concerned What methodology can Molly use to develop financial forecasts?

  Determine how many payments you will make

You purchase a car for $35000, putting a $10,000 down payment. you then finance the remaining balance by giving $500 month end payments at a rate of 12%compunded quaterly. at the end of your payment stream, you will pay an addtional fee of $5000. det..

  Prepare an adjusted trial balance and closing entries

Prepare an adjusted trial balance. Prepare a post-closing trial balance. Prepare closing entries.

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