Question

Stellar Inc. loans money to John Kruk Corporation in the amount of $800,000. Stellar accepts an...

Stellar Inc. loans money to John Kruk Corporation in the amount of $800,000. Stellar accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Stellarneeds money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Stellar will receive on the sale of the note? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Amount received on sale of note

$

  

  

Stellar Inc. wishes to accumulate $1,300,000 by December 31, 2027, to retire bonds outstanding. The company deposits $200,000 on December 31, 2017, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,300,000 is available at the end of 2027. (The quarterly deposits will also earn at a rate of 10%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Annuity of value of quarterly deposits

$

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
knights inc loans money to jacob corporation in the amount of $848,000. Knights accepts an 8%...
knights inc loans money to jacob corporation in the amount of $848,000. Knights accepts an 8% note due in 7 years with interest payable semianually. after 2 years (and receipt of interest for 2 years), knights needs money and therefore sells the note to chicago national bank, which demands interest of the note of 10% compounded semiannually. what is the amount knights will receive on the sale of the note? round factor values to 5 decinal places and final answer...
Leon Jackson invests $37,500 at 10% annual interest, leaving the money invested without withdrawing any of...
Leon Jackson invests $37,500 at 10% annual interest, leaving the money invested without withdrawing any of the interest for 10 years. At the end of the 10 years, Leon withdraws the accumulated amount of money. Compute the amount Leon would withdraw assuming the investment earns simple interest. (Round answers to 0 decimal places, e.g. 458,581.) Compute the amount Leon would withdraw assuming the investment earns interest compounded annually. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer...
Concord Inc. loans money to John Kruk Corporation in the amount of $752,000. Concord accepts an...
Concord Inc. loans money to John Kruk Corporation in the amount of $752,000. Concord accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Concord needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Concord will receive on the sale of the note?
Larkspur Inc. loans money to John Kruk Corporation in the amount of $1,008,000. Larkspur accepts an...
Larkspur Inc. loans money to John Kruk Corporation in the amount of $1,008,000. Larkspur accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Larkspur needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Larkspur will receive on the sale of the note?
Donald Bautista needs $26,000 in 9 years. Click here to view factor tables What amount must...
Donald Bautista needs $26,000 in 9 years. Click here to view factor tables What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest if his investment earns 12% annual interest compounded quarterly? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment at 12% annual interest $enter a dollar amount rounded to 0 decimal places Investment at 12% annual interest, compounded quarterly $enter...
Using the appropriate interest table, answer the following questions. (Each case is independent of the others.)...
Using the appropriate interest table, answer the following questions. (Each case is independent of the others.) What is the future value of 24 periodic payments of $4,660 each made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The future value $ What is the present value of $2,600 to be received at the beginning of each of 30 periods, discounted...
1- Serena Willis will invest $27,700 today. She needs $42,972 in 9 years. What annual interest...
1- Serena Willis will invest $27,700 today. She needs $42,972 in 9 years. What annual interest rate must she earn? 2- Gary Bautista needs $27,000 in 3 years. What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest if his investment earns 12% annual interest compounded quarterly? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Investment at 12% annual interest, compounded quarterly...
Stacy Alvarez is investing $381,500 in a fund that earns 11% interest compounded annually. Click here...
Stacy Alvarez is investing $381,500 in a fund that earns 11% interest compounded annually. Click here to view factor tables What equal amounts can Stacy withdraw at the end of each of the next 16 years? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 458,581.) Yearly withdrawals $ Chris Inc. will deposit $56,600 in a 11% fund at the end of each year for 7 years beginning December 31, 2020. Click...
Using the appropriate interest table, answer the following questions. (Each case is independent of the others.)...
Using the appropriate interest table, answer the following questions. (Each case is independent of the others.) What is the future value of 24 periodic payments of $4,890 each made at the beginning of each period and compounded at 8%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The future value $enter the future value in dollars rounded to 0 decimal places What is the present value of $3,950 to be...
Problem 6-5 Julia Baker died, leaving to her husband Leon an insurance policy contract that provides...
Problem 6-5 Julia Baker died, leaving to her husband Leon an insurance policy contract that provides that the beneficiary (Leon) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables (a) $55,240 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $ 55240 (b) $4,090 every 3 months payable at...