Question
Answer those questions please 1.Bianca took out a loan from the bank today for X. She plans to repay this loan by making payments of
Answer those questions please
1.Bianca took out a loan from the bank today for X. She plans to repay this loan by making payments of 53,953 dollars per month for a certain amount of time. If the interest rate on the loan is 1.02 percent per month, she makes her first payment of 53,953 dollars later today, and she makes her final monthly payment of 53,953 dollars in 8 months, then what is X, the amount of the loan?
2.Marco owns a laser tag center that has a cost of capital of 7.61 percent. The laser tag center is expected to produce annual cash flows of 21,054 dollars for 5 years. The first annual cash flow of 21,054 dollars is expected later today. In addition to the annual cash flows of 21,054 dollars, the laser tag center is also expected to produce a special, one-time cash flow of 74,228 dollars in 2 years from today. How much is Marcos laser tag center worth?
3.A laundromat is expected to produce regular annual cash flows of 20,462 dollars with the first regular cash flow expected later today and the last regular cash flow expected in 5 years from today. In addition to the regular cash flows of 20,462 dollars, the laundromat is also expected to produce an extra cash flow of 59,786 dollars in 5 years from today. The cost of capital for the laundromat is 9.6 percent. What is the value of the laundromat?
4.A trampoline park is expected to produce regular annual cash flows of 49,385 dollars with the first regular cash flow expected later today and the last regular cash flow expected in 6 years from today. In addition to the regular cash flows of 49,385 dollars, the trampoline park is also expected to produce an extra cash flow of 89,059 dollars in 7 years from today. The cost of capital for the trampoline park is 3.34 percent. What is the value of the trampoline park?
5.Sasha has an investment worth 19,479 dollars. The investment will make a special payment of X to Sasha in 3 years from today. The investment also will make regular, fixed annual payments of 3,300 dollars to Sasha with the first of these payments made to Sasha later today and the last of these annual payments made to Sasha in 5 years from today. The expected return for the investment is 9.67 percent per year. What is X, the amount of the special payment that will be made to Sasha in 3 years?
6.
Investment A will make N annual payments of $500 with the first of the N payments due immediately. Investment A has a value of $20,000. Investment B is an ordinary annuity that will make (N minus 1) annual payments of $500 with the first payment due in one year from today. If investment A and investment B have the same expected return, then what is the value of investment B?
$20,500 | |||||||||||||||||
The value of investment B can not be determined from the information given | |||||||||||||||||
The value of investment B can be determined from the information given, but it is not equal to $19,500, $20,000, or $20,500 | |||||||||||||||||
$20,000 | |||||||||||||||||
$19,500 7. Investment A will make N annual payments of $500 with the first of the N payments due immediately. Investment B is an ordinary annuity that will make (N minus 1) annual payments of $500 with the first payment due in one year from today. Investment B has a value of $20,000. If investment A and investment B have the same expected return, then what is the value of investment A?
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