Question

Chris buys land for $200,000 down and $50,000 to be paid at the end of each...

Chris buys land for $200,000 down and $50,000 to be paid at the end of each year for 10 years. If money is worth 6% compounded annually, what would an equivalent cash cost of the land be today?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
1. Chris Spear invested $50,000 today in a fund that earns 8% compounded semiannually. To what...
1. Chris Spear invested $50,000 today in a fund that earns 8% compounded semiannually. To what amount will the investment grow in 3 years? 2. Sally Medavoy will invest $10,000 a year for 3 years in a fund that will earn 6% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 3 years? 3. John Fillmore's lifelong dream is to own his own fishing boat to use in his retirement....
Determine the equivalent cash price of an item that can be purchased for $3350 down, and...
Determine the equivalent cash price of an item that can be purchased for $3350 down, and $3605 paid at the end of each year for 3 years if money is worth 9.135% simple interest.
Determine the equivalent cash price of an item that can be purchased for $150 down, and...
Determine the equivalent cash price of an item that can be purchased for $150 down, and $215 paid at the end of each year for 3 years if money is worth 5.34% simple interest.
General accounting questions I have: 1. Min Co. buys a new machine and agrees to pay...
General accounting questions I have: 1. Min Co. buys a new machine and agrees to pay for the machine with the following terms. There is no down payment and Min sends a cheque in for $300,000 for each of the next six years. Money is worth 6% per annum and is compounded semi-annually. Min would capitalize this machine at: The gross amount of the obligation ($1,800,000) $300,000 (and each year the capitalization would be increased by another $300,000) The future...
A car was purchased for ​$3100 down and payments of ​$299 at the end of each...
A car was purchased for ​$3100 down and payments of ​$299 at the end of each month for six years. Interest is 8​% compounded semi-annually. What was the purchase price of the​ car? How much interest will be​ paid?
A commercial bldg. can be acquired at a down payment of P500,000 and a yearly payment...
A commercial bldg. can be acquired at a down payment of P500,000 and a yearly payment of P100,000 at the end of each year for a period of 10 years, starting at the end of 5 years from the date of purchase. If money is worth 12% compounded yearly. What is the cash price of the commercial bldg.? CASH FLOW DIAGRAM is needed.
A company buys a machine for $25,000. The annual cost of maintaining the machine is $500...
A company buys a machine for $25,000. The annual cost of maintaining the machine is $500 per year for the first 5 years (End of Year 1 thru End of Year 5) and then it increases to $750 for the next 5 years (Year 6 thru Year 10). Consider all cash flows to be end of year cash flows. For an interest rate of 8% per year compounded yearly, find the annual maintenance cost of the machine and the present...
Julia Baker died, leaving to her husband Chris an insurance policy contract that provides that the...
Julia Baker died, leaving to her husband Chris an insurance policy contract that provides that the beneficiary (Chris) can choose any one of the following four options. Money is worth 2.5% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables (a) $55,560 immediate cash. Present value b. 4,090 every 3 months payable at the end of each quarter for 5 years. Present value (c) $19,460 immediate cash and $1,946 every 3 months for 10 years,...
Show your complete solution. Draw the cash-flow diagram of the following problem. The maintenance cost of...
Show your complete solution. Draw the cash-flow diagram of the following problem. The maintenance cost of a certain equipment is ₱ 32,000 per year for the first five years, ₱ 45,000 per year for the next five years and ₱ 15,000 at the end of the 4th year and 6th year. Find the equivalent uniform annual cost of maintenance if money is worth 10% compounded annually.
Question 20 What is the present value of $27 received at the end of each year...
Question 20 What is the present value of $27 received at the end of each year for 5 years?Assume a discount rate of 9%. The first payment will be received one year from today I. $42 II. $114 III. $88 IV. $105 V. None of the options specified here Question 16 Winner Lei is thinking of buying a miniature golf course. It is expected to generate cash flows of $40,000 per year in years 1, $50,000 per year in year...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT