Present value of a future payment

Assignment Help Financial Management
Reference no: EM131021186

a. $1000 invested for 5 years with simple annual interest of 10% would have a future value of _________. b. $1000 invested for 5 years at 10%, compounded annually has a future value of _________. c. Present value of a future payment of $10,000 at the end of year three when interest rates are 4.5% d. When interest rates are at 4%, which would be better, taking $15,000 today, or $18,000 in four years? Show calculations.

Reference no: EM131021186

Questions Cloud

Bonds with call option and bonds with convertible option : One of the following embedded options will decrease the required rate of return by bondholders if other factors are constant. What is it? (1) Bonds with call option (2) bonds with convertible option (3) straight bonds (4) bullet bonds
What should current rate be on two-year treasury securities : Liquidity Premium Hypothesis One-year Treasury bills currently earn 5.85 percent. You expect that one year from now, one-year Treasury bill rates will increase to 6.10 percent. The liquidity premium on two-year securities is .110 percent. If the liqu..
What is opportunity cost of producing an additional shirt : In the United States, what is the opportunity cost of producing an additional shirt (measured in terms of foregone computers)? In China, what is the opportunity cost of producing an additional shirt (measured again in terms of foregone computers
Based on the database schema : Based on the database schema:     Movies(movieTitle, year, length, genre,studioName,producerCertificateNum) StarsIn(movieTitle,movieYear,starName)
Present value of a future payment : a. $1000 invested for 5 years with simple annual interest of 10% would have a future value of _________. b. $1000 invested for 5 years at 10%, compounded annually has a future value of _________. c. Present value of a future payment of $10,000 at the..
Analyze the internal environment of the company : Based on the strengths and weaknesses you discovered, determine what steps the company could take to positively impact the company's competitiveness. Explain your rationale.
Book value of equity and total liabilities : The Here Today Corporation has applied to your bank for a loan. You have their financial statements and the Z-score model of: Z = 6.56*(Net Working Capital/Total Assets) + 3.26*(Accumulated Retained Earnings/Total Assets) + 1.05*(EBIT/Total Assets) +..
How has the importance of balance evolved : How has the importance of 'balance' evolved over the last century, and howhas it influenced strategic management thinking?
Find the poles and the transfer function : It is required to design a low-pass filter to meet the following specifications: fp = 3.4 kHz, Amax = 1 dB, fs = 4 kHz, Amin = 35 dB. Find the required order of Chebyshev filter. What is the excess (above 35 dB) stopband attenuation obtained?

Reviews

Write a Review

Financial Management Questions & Answers

  Strategies in response to each identified planning need

Write at least one primary and one alternative recommendation from selected strategies in response to each identified planning need. More than one recommendation may be needed to address all of the planning needs. It is suggested that each recommenda..

  Forecasts the free cash flows

A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13% and the FCF's are expected to continue growing at a 5% rate after year 3. Assuming that the ROIC is expected to remain constant in year 3 a..

  Land owner receives annual royalty payment

Suppose that a land owner receives annual royalty payment of $2000 at the end of first year, $2200 at the end of second year, $1900 at the end of third year, $2500 at the end of forth year, and $1500 at the end of fifth year. Calculate the future val..

  Preferred dividends-calculate the earnings per share

Assume there are 600,000 shares of common stock authorized by ABC Corporation. Of those, 500,000 shares have been issued. Later, 100,000 shares of the issued shares were repurchased by ABC Corporation and are currently held as Treasury Stock. Net Inc..

  Calculate annual return on mutual funds-investment period

Suppose an individual invests $20,000 in a load mutual fund for two years. The load fee entails an up-front commission charge of 3.0 percent of the amount invested and is deducted from the original funds invested. calculate the annual return on the m..

  Covariances of the returns between two securities

Assume N securities. The expected returns on all the securities are equal to 0.01 and the variances of their returns are all equal to 0.01. The covariance’s of the returns between two securities are all equal to 0.005. What are the expected return an..

  Demonstrating how electronic health records

Locate one or more additional examples of instances where the private sector has led the way in demonstrating how electronic health records can be successfully conceived and implemented. Put your examples in the form of a report?

  Disadvantage of funding a designated roth account

Which of the following is a disadvantage of funding a designated Roth account?

  Will be adequate compensation for this investment

You are considering the purchase of Crown Bakery, Inc. common stock that just paid a dividend od $19.59 per share. You expect the dividend to grow at a rate of 1.04 percent per year, indefinitely. You estimate the rate of return od 12.18%, will be ad..

  What is the future value of an annuity

What is the future value of an annuity of $3,277.87 per year for 49 years if the annually compounded interest rate is 13.38%?

  A type of deed often referred to as a mortgage

Profits made by directors, officers, or owners of 10 percent or more of the securities of a corporation as a result of buying and selling the securities within a six month period. A type of business organization formed and authorized by state law to ..

  Return on investors equity for this investment

Henry bought 100 shares of stock at a price of $25 a share. He used his 60% margin account to make the purchase. Henry sold his stock after a year for $22 a share. Ignoring margin interest and trading costs, what is Henry's return on investor's equit..

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