Clementine County's assets have a market value of $5,000,000 and a duration of 11 at the current market interest rate of 2.5%. Use the duration formula to estimate the value of the assets if the market interest rate changes from 2.5% to 2.2%. O 5.161 million O 5.247 million O 5.032 million 4.917 million
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- If the annual deposit into depletion reserve is $ 1000 and annual interest on capital investment is $ 125, then find annual net income- -- Select one: O a. $ 1125 b. $ 875 c. $ 1025 d. $ 975Compute for the Present Value in Perpetuity if the indefinite Cash Flows is Ᵽ 45,600 and the interest is 4.5%. What is the value of the asset if the Cash flows are the following: CF0 = 250,000; CF1 = 250,000; CF2 = 275,800; CF3 = 300,500; CF4 = 330,650. and the interest rate is 8.2%Calculate the present value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Future Value Annual Rate Interest Compounded Period Invested Present Value 1. $8,300 4 % Annually 3 years $7,378.70 2. 5,300 10 % Semiannually 6 years 4,578.35 3. 4,300 8 % Quarterly 2 years
- A company would like to have $400,000 in 6 years. How much should be invested semiannually into an account paying 3.6% compounded semiannually? 7. Identify the type of problem. a. Present Value with compound interest b. Future Value of an Annuity c. Present Value of an Annuity d. Amortization e. Sinking Fund 8. Answer the question in the problem. a. $30,681.38 b. $29,754.02. c. $34,245.54 d. $30,160.79 c. $28,541.46(1). Complete the table for an investment subject to n compoundings yearly A=P1+rnnt. Amount Invested Number of Compounding Periods Annual Interest Rate Accumulated Amount Time t in Years $40,000 365 10.2% $100,000 ? Amount Invested Number of Compounding Periods Annual Interest Rate Accumulated Amount Time t in Years $40,000 365 10.2% $100,000 enter your response here (Round to one decimal place as needed.) (2). Prehistoric cave paintings were discovered in a cave in France. The paint contained 39% of the original carbon-14. Use the exponential decay model for carbon-14, A=A0e−0.000121t,to estimate the age of the paintings. Question content area bottom Part 1 The paintings are approximately enter your response here years old. (Round to the nearest integer.) (3). Use the exponential decay model, A=A0ekt, to solve the following. The half-life of a certain substance is…Calculate the future value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2 3. Initial Annual Investment Rate $ 7,200 5,200 8,200 8% 8% 8% Interest Compounded Annually Semiannually Quarterly Period Invested 9 years 6 years 3 years Future Value
- Wells, Inc., has identified an investment project with the following cash flows. Cash Flow $ 950 1,180 1,400 2,140 Year 1 ~34 2 a. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Future value at 8 percent b. Future value at 11 percent Future value at 24 percent c.SIMPLE INTEREST1. P 150,000 was invested at a local bank from June 7, 2020 to January 20, 2021 at 4 1/2 % . Find the exact and ordinary interest using : a). exact time b) approximate time2. If P = P 350 ; r = 4% ; t = March 2 to December 6, 2021, what are the exact and ordinary interest using actual and approximate time, respectively.Using the following information, calculate the RAROC. •Risk-Adjusted Return: $80,000•Loan Amount: $3,000,000•Capital Requirement: 10%•Capital Ratio: 75% a) 28.75% b) 33.33% c) 35.56% d) 38.25%
- Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 2 3 $780 1,050 1,310 1,425 a. If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 8% b. Present value at 17% c. Present value at 25%Calculate the future value of the following single amounts. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Initial Investment Annual Rate Interest Compounded Period Invested Future Value 1. $7,400 10 % Annually 7 years $14,420.00 2. 5,400 12 % Semiannually 4 years 3. 8,400 8 % Quarterly 4 yearsgnment (II) Saved Fox Co. has identified an investment project with the following cash flows. Year Cash Flow $1,290 1,240 1,590 2. 3 1,950 a. If the discount rate is 9 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 23 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 9 percent b. Present value at 17 percent C. Present value at 23 percent re to search