Question

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?

Answer #1

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 $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 $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 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 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 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 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 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,...

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...

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.

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