the present value of a 4-year annuity‚ if the annual interest is 5%‚ and the annual payment is $1‚000? Q.5 You are given the option of receiving $1‚000 now or an annuity of $85 per month for 15 months. Which of the following is correct? a. You cannot choose between the two without computing present values. b. You cannot choose between the two without computing future values. c. You will always choose the lump sum payment. d. You will always choose the annuity. e. The choice you would make
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New York Life Insurance Company Founded in 1845‚ New York Life started with $17‚000 in assets (http://en.wikipedia.org). In its fledgling years‚ the company insured the lives of slaves for slave owners (http://en.wikipedia.org). Now‚ New York Life is one of the largest mutual life insurance companies in the world. The company was listed in the 2007 Fortune 100 and received the highest possible rating from Standard and Poor’s (http://en.wikipedia.org). Professional agents‚ excellent customer
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has turned 34‚ and has just made a deposit. The mutual fund has returned 6.5% annually. How much does Rajit have in his account today? Your Answer | | Score | Explanation | 80967 | ✔ | 5.00 | Correct. You know how to calculate the FV of an annuity. | Total | | 5.00 / 5.00 | | Question Explanation Basic FV calculation. He should have a minimum of $60‚000. Why? Question 3 (5 points) Dominique has just turned 65 and she has deposited her annual payment of $20‚000 into her retirement
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CATHOLIC UNIVERSITY OF SANTIAGO DE GUAYAQUIL FACULTY OF ECONOMICS AND ADMINISTRATIVE SCIENCES INTERNATIONAL BUSINESS MANAGEMENT FINANCIAL MANAGEMENT I TOPIC: DUTY CHAPTER 5 - EXERCISES MEMBERS: BRYAN CARRION LILIBETH LIGER KARLA SARANGO TEACHER: Mr. PEDRO ZAMBRANO SEMESTER A 2015 CHAPTER 5 – EXERCISES P5–2 Future value calculation Without referring to the preprogrammed function on your financial calculator‚ use the basic formula for future value along with the given interest rate‚ r‚ and the
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Exam2 FIN370 Fall 2011 Key Version B 1. A call provision in a bond agreement grants the issuer the right to: A. repurchase the bonds prior to maturity at a pre-specified price. B. change the coupon rate provided the bondholders are notified in advance. C. replace the bonds with equity securities. D. buy back the bonds on the open market prior to maturity. E. call the bondholder to determine if he or she would like to extend the term of the bond agreement. BLOOMS TAXONOMY
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COMPUTATION OF CTC & TAKE HOME SALARIES COMPONENTS OF SALARY Basic Salary HRA DA & FDA Conveyance Allowance Variable pay( monthly) Gratuity? LTA? PF? ESI? Medical Allowance‚ attire allowance‚ washing allowance Education allowance‚ Spl Allowance COMPUTATION OF CTC Basic Salary‚ HRA‚ DA & FDA Conveyance Allowance‚ Variable pay( monthly) Gratuity‚ LTA p.a.‚Bonus‚ Extratia Retention/Loyalty Bonus paid annually PF ‚ ESI(employers) Medical Allowance‚ attire allowance
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Ratio o 3-4 PE Ratio o 3-5 ROE o 3-6 Du Pont Analysis o 3-7 Current and Quick Ratios · Problems (pp. 165-167) o 4-1 FV of Single Amount o 4-2 PV of Single Amount o 4-6 FV of Ordinary Annuity o 4-13 a PV of an Annuity o 4-14 PV Uneven Cash Flow Stream Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox ‚ rea... Follow the link to get tutorial - https://bitly
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an expected lifetime of 11 years it would be improper to simply compare the net present values (NPVs) of the two projects‚ unless neither project could be repeated. EAC is calculated by dividing the NPV of a project by the present value of an annuity factor. Equivalently‚ the NPV of the project may be multiplied by the loan repayment factor. EAC= The use of the EAC method implies that the project will be replaced by an identical project. [edit] A practical example A manager must decide
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you to keep your monthly payments at $1‚200? 54. Calculating Annuities. You have recently won the super jackpot in the Washington State Lottery. On reading the fine print‚ you discover that you have the following two options: a. You will receive 31 annual payments of $175‚000‚ with the first payment being
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Chapter 5‚ 6 Review 1. You invested $1‚650 in an account that pays 5 percent simple interest. How much more could you have earned over a 20-year period if the interest had compounded annually? A. $849.22 B. $930.11 C. $982.19 D. $1‚021.15 E. $1‚077.94 2. Today‚ you earn a salary of $36‚000. What will be your annual salary twelve years from now if you earn annual raises of 3.6 percent? A. $55‚032.54 B. $57‚414.06 C. $58‚235.24 D. $59‚122.08 E. $59‚360.45 3. You hope to buy your dream
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