Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. An investment scheme pays $200 at the end of each of the next 4 years, $400 at the end of year 5, $300 at the end of year 6 and $500 at the end of year 7. Given that other investments of equal risk earn 10% per annum, find out the present value and future value of this investment.

2. A loan of $100,000 with an interest rate of 10% per annum is to be paid off by 20 equal quarterly payments; the first payment is due today. Find the size of the quarterly payment.

3. Greg won a lottery of $200,000. He invested the entire amount and expects a yearly return of 10% per annum on his investment and he will receive 150 equal monthly payments. The first payment is expected in 2 years. Find the size of the payments.

4. Firm A pays 10% interest per annum, compounded on a quarterly basis. To remain competitive, the manager of another firm (Firm B) is willing to match the interest rate offered by Firm A, but interest will be compounded on a monthly basis. What nominal rate of interest must Firm B offer to its clients?

5. An amount of $28,974 is required at the end of 10 years from now, and regular contributions can be made into an investment scheme that pays 8% per annum (compounded annually):

i. What single payment could be made at the beginning of the first year to achieve this objective?
ii. What amount could you pay at the end of each year annually, for 10 years to achieve this same objective?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927205

Have any Question? 


Related Questions in Basic Finance

1 what do we mean by overage in a retail lease agreement

1. What do we mean by overage in a retail lease agreement? How might it be calculated? 2. What is sensitivity analysis? How might it be used in real estate development? 3. Why is the practice of "holdbacks" used? Who is ...

1 describe and contrast the role of rfdc and rfid for

1. Describe and contrast the role of RFDC and RFID for logistics and supply chain applications. 2. Discuss the relative benefits of software purchase, use of third-party providers, and use of application service provider ...

1 what are placebo effects and how can they be avoided2

1. What are placebo effects, and how can they be avoided? 2. What are demand characteristics, and how can they be avoided? 3. In what ways may experimenters unwittingly communicate their expectations to research particip ...

1 what is a factorial design why are factorial designs used

1. What is a factorial design? Why are factorial designs used more frequently than one-way designs? 2. How many independent variables are involved in a 3 x 3 factorial design? How many levels are there of each variable? ...

What would be the cumulative scatter of the four variables

What would be the cumulative scatter of the four variables we used in the Figures 17.2 through 17.7 if we combined them arithmetically? How does this compare with the scatter computed in the text using the square root of ...

The hudson corporation makes an investment of 24000 that

The Hudson Corporation makes an investment of $24,000 that provides the following cash flow: Year Cash Flow 1................ $ 13,000 2................ 13,000 3................ 4,000 a. What is the net present value at ...

What exactly is a homemade dividend does this concept

What exactly is a homemade dividend? Does this concept lessen the importance of dividend policy?

1 develop a topic of interest to you and prepare both a

1. Develop a topic of interest to you, and prepare both a structured and an unstructured interview. Collect data from your classmates, and develop a method for coding the findings. 2. Create a sampling frame, and collect ...

1 why is variance reduction important to logistical

1. Why is variance reduction important to logistical integration? Illustrate in terms of logistical operations. 2. What is the meaning of the phrase cradle-to-cradle logistics? Discuss the operational differences of orig ...

All of us have a tendency to categorize people into

All of us have a tendency to categorize people into stereotypic groups. If you look around at the students on campus, you will see science geeks, artsy freaks, jocks, wallflowers, cheerleaders, and party animals, just to ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro