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You will deposit $14,000 today. It will grow for 8 years at 10% interest compounded semiannually. You will then withdraw the funds annually over the next 6 years. The annual interest rate is 8%. Your annual withdrawal will be: Use Appendix A and Appendix D. (Round "PV Factor" and "FV Factor" to 3 decimal places.)

$9,858

$7,866

$4,166

$6,611

Lou Lewis borrows $12,000 to be repaid over 9 years at 8 percent. Repayment of principal in the first year is: Use Appendix D. (Round "PV Factor" to 3 decimal places. Round your intermediate calculations to the nearest dollar value.)

$1,045

$1,921

$961

$1,188

Mr. Blochirt is creating a college investment fund for his daughter. He will put in $6,000 per year for the next 16 years and expects to earn a 11% annual rate of return. How much money will his daughter have when she starts college? Use Appendix C. (Round "FV Factor" to 3 decimal places.)

$235,140

$224,127

235,867

$223,114

PLEASE SHOW ALL WORK!! EVEN SIMPLE CALCULATIONS, THANKS

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Irving HeathcoteLv2
28 Sep 2019
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Related questions

How much must you invest at 8% interest in order to see your investment grow to $22,000 in 10 years? (Round "PV Factor" to 3 decimal places.)

$9,552

$9,587

$10,186

none of these

Dr. J. wants to buy a Dell computer which will cost $3,000 four years from today. He would like to set aside an equal amount at the end of each year in order to accumulate the amount needed. He can earn 10% annual return. How much should he set aside? Use Appendix C. (Round "FV Factor" to 3 decimal places and your final answer to 2 decimal places.)

$646.41

$621.41

$746.41

$696.41

Sharon Smith will receive $1.25 million in 30 years. The discount rate is 16%. As an alternative, she can receive $10,000 today. Which should she choose? Use Appendix B. (Round "PV Factor" to 3 decimal places.)

Use Appendix B for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

she should be indifferent.

the $1.25 million dollars in 30 years.

need more information.

$10,000 today.

PLEASE SHOW ALL WORK AND FORMULAS thanks

33.33 A financial company advertises on television that theywill pay you $75,000 now in exchange for annual payments of $12,500that you are expected to receive for a legal settlement over thenext 12 years. You estimate the time value of money at 10 percent.Would you except this offer?

33.32 If a person spends $15 a week on coffee (assume $750 ayear), what would be the future value of that amount over 9 yearsif the funds were deposited in an account earning 1 percent? UseExhibit 1-B. (Round time value factor to 3 decimal places and finalanswer to 2 decimal places.)

33.31If a person spends $15 a week on coffee (assume $750 ayear), what would be the future value of that amount over 9 yearsif the funds were deposited in an account earning 1 percent? UseExhibit 1-B. (Round time value factor to 3 decimal places and finalanswer to 2 decimal places.)

33.30 If you desire to have $25,000 for a down payment for ahouse in six years, what amount would you need to deposit today?Assume that your money will earn 2 percent. Use Exhibit 1-C. (Roundtime value factor to 3 decimal places and final answer to thenearest whole number.)

33.29 b (b) The future value of $800 saved each year for 10years at 7 percent. (Round time value factor to 3 decimal placesand final answer to 2 decimal places.) c.The amount a person wouldhave to deposit today (present value) at an interest rate of 7percent to have $800 five years from now. (Round time value factorto 3 decimal places and final answer to 2 decimal places.) d.(d)The amount a person would have to deposit today to be able to takeout $600 a year for 8 years from an account earning 8 percent.(Round time value factor to 3 decimal places and final answer to 2decimal places.)

33.28.What would be the yearly earnings for a person with $9,000in savings at an annual interest rate of 2.5 percent? 27.A familyspends $50,000 a year for living expenses. If prices increase by 6percent a year for the next three years, what amount will thefamily need for their living expenses after three years? UseExhibit 1-A. (Round time value factor to 3 decimal places and finalanswer to the nearest whole number.)

33.26. a(a) If the value of land in an area is increasing 5percent a year, how long will it take for property values todouble? (Round your answer to 1 decimal place.) b.b) If you earn 10percent on your investments, how long will it take for your moneyto double? (Round your answer to 1 decimal place.) c.(c) At anannual interest rate of 4 percent, how long will it take for yoursavings to double? (Round your answer to 1 decimal place.)

33.25. Ben Collins plans to buy a house for $255,000. If thatreal estate is expected to increase in value by 5 percent eachyear, what will its approximate value be seven years from now? UseExhibit 1-A. (Round time value factor to 3 decimal places and finalanswer to the nearest whole number.)

33.24. Financial intermediaries’ main goal is to: a.Encourageusers to borrow less. b Encourage providers to save less. c.Provide funds at an interest rate substantially above the marketrate. d. Provide funds at an interest rate substantially below themarket rate. e. Charge an amount that will pay them to operate andcharge an adequate interest rate.

I have answered almost all of these but it keeps saying myanswer is wrong. I just want to check my work. I cant afford to getany more wrong. Please help me.

Set up an amortization schedule for a $40,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 7%. Round your answers to the nearest cent. Enter "0" if required

Year Payment Repayment Interest Repayment of Principal Balance
1 $ $ $ $
2 $ $ $ $
3 $ $ $ $
4 $ $ $ $
5 $ $ $ $
Total $ $ $


How large must each annual payment be if the loan is for $80,000? Assume that the interest rate remains at 7% and that the loan is paid off over 5 years. Round your answer to the nearest cent.
$

How large must each payment be if the loan is for $80,000, the interest rate is 7%, and the loan is paid off in equal installments at the end of each of the next 10 years? This loan is for the same amount as the loan in part b, but the payments are spread out over twice as many periods. Round your answer to the nearest cent.
$

Why are these payments not half as large as the payments on the loan in part b?
-Select- Item 26
I. Because the payments are spread out over a longer time period, more principal must be paid on the loan, which raises the amount of each payment.
II. Because the payments are spread out over a longer time period, less interest is paid on the loan, which raises the amount of each payment.
III. Because the payments are spread out over a longer time period, less interest is paid on the loan, which lowers the amount of each payment.
IV. Because the payments are spread out over a shorter time period, more interest is paid on the loan, which lowers the amount of each payment.
V. Because the payments are spread out over a longer time period, more interest must be paid on the loan, which raises the amount of each payment.

You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta of 1. You are considering selling $100,000 worth of one stock with a beta of 0.8 and using the proceeds to purchase another stock with a beta of 1.3. What will the portfolio's new beta be after these transactions? Do not round intermediate calculations. Round your answer to two decimal places.

You have observed the following returns over time:

Year Stock X Stock Y Market
2009 12% 11% 10%
2010 19 5 9
2011 -15 -8 -12
2012 5 1 1
2013 20 13 13

Assume that the risk-free rate is 3% and the market risk premium is 6%. Do not round intermediate calculations.

What is the beta of Stock X? Round your answer to two decimal places.

What is the beta of Stock Y? Round your answer to two decimal places.

What is the required rate of return on Stock X? Round your answer to one decimal place.
%

What is the required rate of return on Stock Y? Round your answer to one decimal place.
%

What is the required rate of return on a portfolio consisting of 80% of Stock X and 20% of Stock Y? Round your answer to one decimal place.
%

Your division is considering two investment projects, each of which requires an up-front expenditure of $25 million. You estimate that the cost of capital is 9% and that the investments will produce the following after-tax cash flows (in millions of dollars):

Year Project A Project B
1 5 20
2 10 10
3 15 8
4 20 6

What is the regular payback period for each of the projects? Round your answers to two decimal places.

Project A years

Project B years

What is the discounted payback period for each of the projects? Round your answers to two decimal places.

Project A years

Project B years

If the two projects are independent and the cost of capital is 9%, which project or projects should the firm undertake?
-Select-Project AProject BBoth projectsItem 5

If the two projects are mutually exclusive and the cost of capital is 5%, which project should the firm undertake?
-Select-Project AProject BItem 6

If the two projects are mutually exclusive and the cost of capital is 15%, which project should the firm undertake?
-Select-Project AProject BItem 7

What is the crossover rate? Round your answer to two decimal places.
%

If the cost of capital is 9%, what is the modified IRR (MIRR) of each project? Round your answers to two decimal places.

Project A %

Project B %

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