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As much help as you can would be greatly appreciated! any help would be much appreciated, thanks! 7 begin{tabular}{|c|c|c|c|c|} hline DETERMINE the return on these

As much help as you can would be greatly appreciated!

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any help would be much appreciated, thanks!

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7 \begin{tabular}{|c|c|c|c|c|} \hline DETERMINE the return on these two investments & & & Bond & Var Annuity \\ \hline & n & OUTLAY & -980 & -1000 \\ \hline & 1 & cash flow & 70 & 60 \\ \hline & 2 & cash flow & 70 & 70 \\ \hline & 3 & cash flow & 70 & 60 \\ \hline & 4 & cash flow & 70 & 80 \\ \hline & 5 & cash flow & 70 & 80 \\ \hline & 6 & cash flow & 1070 & 1050 \\ \hline & RETUR & & & \\ \hline \end{tabular} 8 \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ DETERMINE the quarterly } \\ \hline RATE \\ NPER \\ PMT \end{tabular} Text: You are buying land that cost $120,000 and need to make quarterly payments to the bank. The term is 5 years and their interest rate is 12%. Solution: DETERMINE the price of a bond RATE Text: A bond has a maturity value of $1,000 in 5 years. The stated rate is 4% but pays interest semiannually. Your cost of capital is 6%. Price the bond. Solution: 5 DETERMINE PV RATE Text: Reconcile your answer in \#4 by reconciling the present value of the interest payments and the present value of the maturity payment. PV of interest Solution: PV of $1,000 Solution: Add \begin{tabular}{|l|} \hline \\ \hline \\ \hline \end{tabular} 7 \begin{tabular}{|c|c|c|c|c|} \hline DETERMINE the return on these two investments & & & Bond & Var Annuity \\ \hline & n & OUTLAY & -980 & -1000 \\ \hline & 1 & cash flow & 70 & 60 \\ \hline & 2 & cash flow & 70 & 70 \\ \hline & 3 & cash flow & 70 & 60 \\ \hline & 4 & cash flow & 70 & 80 \\ \hline & 5 & cash flow & 70 & 80 \\ \hline & 6 & cash flow & 1070 & 1050 \\ \hline & RETUR & & & \\ \hline \end{tabular} 8 \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ DETERMINE the quarterly } \\ \hline RATE \\ NPER \\ PMT \end{tabular} Text: You are buying land that cost $120,000 and need to make quarterly payments to the bank. The term is 5 years and their interest rate is 12%. Text: You are investing $25,000 in a lump sum in a ten year investment and your goal is to have a future value of $75,000. What is the required, average annual return required to accomplish this? Solution: ] 1 DETERMINE the required rate of return. RATE NPER PMT PV FV TYPE GUESS Text: You want to double your money in 5 years. What is the required return to accomplish this if the investment compounds quarterly? Solution: Solution: Text: A credit card corporation states that their APR is 24.0% and it is calculated monthly. What is their effective annual rate? Solution: 2 \begin{tabular}{l|l|} \hline \multicolumn{2}{l}{ DETERMINE the EAR } \\ \cline { 2 - 2 } RATE & \\ \cline { 2 - 2 } NPER & \\ \cline { 2 - 2 } PMT & \\ \cline { 2 - 2 } PV & \\ FV & \\ TYPE & \\ \cline { 2 - 2 } GUESS & \\ \cline { 2 - 2 } & \end{tabular} 3 DETERMINE the required rate of return. RATE NPER PMT PV \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Text: You can invest $2,000 per year and wish to have $30,000 by the end of ten (10) years. Compounding annually, what average rate of return do you need. Solution: Solution: DETERMINE the price of a bond RATE Text: A bond has a maturity value of $1,000 in 5 years. The stated rate is 4% but pays interest semiannually. Your cost of capital is 6%. Price the bond. Solution: 5 DETERMINE PV RATE Text: Reconcile your answer in \#4 by reconciling the present value of the interest payments and the present value of the maturity payment. PV of interest Solution: PV of $1,000 Solution: Add \begin{tabular}{|l|} \hline \\ \hline \\ \hline \end{tabular} 16 \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ DETERMINE } & \multirow{2}{*}{yr1} & \multirow{2}{*}{CDrate5.0%} & \\ \hline RATE & & & & \\ \hline NPER & & 2 & 4.5% & \\ \hline PMT & & 3 & 4.5% & \\ \hline PV & $10,000.00 & 4 & 4.0% & FV of CD after four (4) years. \\ \hline \multicolumn{5}{|l|}{ FV } \\ \hline \multicolumn{5}{|l|}{ TYPE } \\ \hline GUESS & & & & \\ \hline \end{tabular} 17 RETIREMENT PROJECT What is your retirement interval: Years you will be in retirement. Age you plan to retire. Funds you anticipate you will need per year during retirement Discount rate during retirement Present Value of Annuity: Age when you will be gainfully employed Number of years to save money Discount rate during savings period Savings required per year Savings required per pay period \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} 1 DETERMINE the required rate of return. RATE NPER PMT PV FV TYPE Text: You want to double your money in 5 years. What is the required return to accomplish this if the investment compounds quarterly? Solution: 2 \begin{tabular}{|l|l|} \hline \multicolumn{2}{ll}{ DETERMINE the EAR } \\ \cline { 2 - 2 } RATE \\ \cline { 2 - 2 } NPER & \\ \cline { 2 - 2 } PMT & \\ \cline { 2 - 2 } PV & \\ \cline { 2 - 2 } FV & \\ \cline { 2 - 2 } TYPE & \\ \cline { 2 - 2 } GUESS & \\ \hline \end{tabular} Text: A credit card corporation states that their APR is 24.0% and it is calculated monthly. What is their effective annual rate? Solution: 3 \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ DETERMINE the require } \\ \cline { 2 - 2 } RATE \\ \cline { 2 - 2 } NPER \\ \cline { 2 - 2 } \\ PMT \\ PV \end{tabular} Text: You can invest $2,000 per year and wish to have $30,000 by the end of ten (10) years. Compounding annually, what average rate of return do you need. Solution: \begin{tabular}{|c|c|} \hline RATE & . \\ \hline NPER & \\ \hline PMT & \\ \hlinev & \\ \hline FV & \\ \hline & \\ \hline ESS & L \\ \hline \end{tabular} Text: Continuing with question #13 above, you are told that the rate required is not predictable over a 10 year period. How many years would it take to achieve the $75,000 goal at a more conservative rate of 8%. Solution: Calculate estimated profit per project under con

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