Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Determine the present value (PV) of each of given investments?

a) $6,000 due in 10 years discounted at a 10 annual rate.

b) $4,000 due in 5 years at a 6% annual rate, with quarterly discounting.

c) $12,000 due in 8 years at a 12% annual rate, with monthly discounting.

2) Determine the present value of given perpetuities?

a) Perpetuity with $1000 annual payment discounted at 10% back to today (i.e., the PV at t = 0).

b) Perpetuity with $500 annual payment, with first payment received 2 years from today, discounted at 6% back to today (again, the PV at t = 0).

3) You plan to deposit $250 into the savings account for each of five years, beginning 1 year from now. Interest rate is 9% compounded annually. Determine the future value in each of the following cases?

a) At the end of five years?

b) At the end of six years if no extra deposits are made?

c) At the end of five years, as in (a), if the extra $250 is deposited today (i.e., at t = 0), so that there are 6 deposits of $250 each?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M915194

Have any Question? 


Related Questions in Basic Finance

1 winnebagel corp currently sells 28000 motor homes

1. Winnebagel Corp. currently sells 28,000 motor homes per year at $73,000 each and 7,000 luxury motor coaches per year at $115,000 each. The company wants to introduce a new portable camper to fill out its product line; ...

Suppose the ceo of your company owns 500000 shares of stock

Suppose the CEO of your company owns 500,000 shares of stock in the company and is granted 10,000 non-transferable European options as a bonus. The expiration date of the options is two years, the strike price is $100 an ...

1 what are positive and negative financial leverage how are

1. What are positive and negative financial leverage? How are returns or losses magnified as the degree of leverage increases? How does leverage on a before-tax basis differ from leverage on an after-tax basis? 2. In wha ...

Quizquestion 1 when viewing the terms special returns or

QUIZ Question 1. When viewing the terms "special returns" or "abnormal returns," we know this can refer to _____. the Efficient Market Hypothesis gains in excess of the market risk-adjusted average convertibles and warra ...

Lowell made a taxable gift of 2 million to his grandson and

Lowell made a taxable gift of $2 million to his grandson and allocated his remaining exemption of $500,000 to the gift. What is Lowell's GST tax liability in 2014?

In a mass-transfer spray column a liquid is sprayed into a

In a mass-transfer spray column, a liquid is sprayed into a gas stream, and mass is transferred between the liquid and gas phases. The mass of the drops that are formed from a spray nozzle is considered a function of the ...

Explain what we mean when we say that the binomial model is

Explain what we mean when we say that the binomial model is a discrete time model and the Black-Scholes-Merton model is a continuous time model? Explain the difference between a normal and a lognormal distribution as it ...

The alpha company has issued a total of 15000000 shares of

The Alpha Company has issued a total of 15,000,000 shares of common stock at par(its value to the firm is $15,000,000. The dividend yield is 7%. The company also has $5,000,000 of bonds(also sold at par) with a coupon ra ...

Consider a portfolio consisting of 10 million invested in

Consider a portfolio consisting of $10 million invested in the S&P 500, and $7.5 million invested in U.S. Treasury bonds. The S&P 500 has an expected return of 14 percent and a standard deviation of 16 percent. The Treas ...

1 demonstrate your understanding of the relationship

1. Demonstrate your understanding of the relationship between logistical capabilities and competencies by tracing the evolution of logistical work to universal competencies. Does this logic have any practical application ...

  • 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