Question

Eight hundred dollars is due at the end of 4 years and $700 at the end...

Eight hundred dollars is due at the end of 4 years and $700 at the end of 8 years. If money is worth j12= 3%, determine an equivalent single amount at a) the end of 2 years; b) the end of 6 years; c) the end of 10 years. Show your answers are equivalent.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The question pertains to the calculation of time value of money. There are two paymments whose value has to be created at different points in time.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
$800 is due at the end of 4 years and $700 at the end of 8...
$800 is due at the end of 4 years and $700 at the end of 8 years. If money is worth j_12 = 3%, determine an equivalent single amount at (a) the end of 2 years; (b) at the end of 6 years; (c) the end of 10 years. note：j_m is the nominal rate of interest compounding m times per year.
During 2016, Dima Co. issued eight hundred, $1,000 bonds due in ten years at 104. One...
During 2016, Dima Co. issued eight hundred, $1,000 bonds due in ten years at 104. One detachable stock warrant entitling the holder to purchase 15 shares of Dima’s common stock was attached to each bond. At the date of issuance, the market value of the bonds, without the stock warrants, was quoted at 96. The market value of each detachable warrant was quoted at $40. What amount, if any, of the proceeds from the issuance should be accounted for as...
(1 point) In 2 years Steven plans to deposit $4000 and another $3000 8 years from...
(1 point) In 2 years Steven plans to deposit $4000 and another $3000 8 years from now. If money is worth j4=4%j4=4%, calculate an equivalent single amount at the end of 5 years (from today).
Question 1. .Scheduled payments of $400 due now and $700 due in five months are to...
Question 1. .Scheduled payments of $400 due now and $700 due in five months are to be settled by a payment of $500 in three months and a final payment in eight months. Determine the amount of the final payment at 6% p.a., using eight months from now as the focal date. Question 2. Two amounts owing from the past were to be paid today. One debt was $620 from one year ago and the other was $925 from six...
Calculate the present value on 28 March 2019 of $12,000 due on 15 October 2019 at...
Calculate the present value on 28 March 2019 of $12,000 due on 15 October 2019 at a simple interest rate of 9% pa. Give your answer in dollars and cents to the nearest cent. This days between dates calculator may assist you. P = $ Find the nominal annual rate of interest convertible daily (j365) that is equivalent to 6% pa effective. Give your answer as a percentage per annum to 3 decimal places. j365 = % pa Calculate the...
A)A sequence of quarterly payments o P6,267 each, with the first payment due at the end...
A)A sequence of quarterly payments o P6,267 each, with the first payment due at the end of 2 years and the last payment at the end of 13 years. Find the present worth of these payments if money is worth 5% compounded quarterly. B)A manufacture borrows P2,211,340 with interest at 6% compounded monthly, and agrees to discharge the loan by a sequence of equal monthly payments for 4 years with the first payment at the beginning of the 4th year.  Find...
A sequence of quarterly payments o P8,064 each, with the first payment due at the end...
A sequence of quarterly payments o P8,064 each, with the first payment due at the end of 2 years and the last payment at the end of 10 years. Find the present worth of these payments if money is worth 8% compounded quarterly.
A payment of $10,435 is due in 1 year, $20,000 is due in 4 years, and...
A payment of $10,435 is due in 1 year, $20,000 is due in 4 years, and $8,850 is due in 7 years. What single equivalent payment made today would replace the three original payments? Assume that money earns 5.50% compounded monthly. Round to the nearest cent
Mr. Abella owes Mr. Divinagracia the following obligations. (1) P100 due at the end of 10...
Mr. Abella owes Mr. Divinagracia the following obligations. (1) P100 due at the end of 10 years.(2) P200 due at the end of 5 years with accumulated from to-day at 5% semi-annually.(3) P300 due at the end of 4 years with accumulated interest from to-day at 4% compounded annually,Mr. Abella will be allowed to discharge his obligations by two equal payments at the ends of the 3rd and 6th years. Divinagracia admits that money is worth 6% compounded semi-annually, what...
Mr. Abella owes Mr. Divinagracia the following obligations. (1) P100 due at the end of 10...
Mr. Abella owes Mr. Divinagracia the following obligations. (1) P100 due at the end of 10 years.(2) P200 due at the end of 5 years with accumulated from to-day at 5% semi-annually.(3) P300 due at the end of 4 years with accumulated interest from to-day at 4% compounded annually,Mr. Abella will be allowed to discharge his obligations by two equal payments at the ends of the 3rd and 6th years. Divinagracia admits that money is worth 6% compounded semi-annually, what...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT