A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The
Question:
A person has made an arrangement to borrow $1,000 now and another $1,000 two years hence. The entire obligation is to be repaid at the end of four years. If the projected interest rates in years one, two, three, and four are 10%, 12%, 12%, and 14%, respectively, how much will be repaid as a lump-sum amount at the end of four years?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (14 reviews)
F 1000 FP ...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Question Posted:
Students also viewed these Business questions
-
Joie is planning to attend college when she graduates from high school in 7 years from now. She anticipates that she will need $10,000 at the beginning of each college year to pay for tuition and...
-
A lottery prize gives the winner a choice between (1) $10,000 now and another $10,000 in 5 years, or (2) four $6700 paymentsnow and in 5, 10, and 15 years. a. Which alternative should the winner...
-
A company is examining two mutually exclusive projects. Project X requires an immediate investment of $100,000 and produces no profit until Year 3. Then the annual profit is $60,000 for Years 3 to 5...
-
Willingham Company Ltd. has the following comparative statements of financial position data. WILLINGHAM COMPANY LTD. Statements of Financial Position December 31 Additional information for 2017: 1....
-
An individual's income rises from $80,000 per year to $84,000 per year, and as a consequence, the person's purchases of movie downloads rise from 48 per year to 72 per year. What is this individual's...
-
Powered by Koffee (PBK) is a new campus coffee store. PBK uses 50 bags of whole bean coffee every month, and you may assume that demand is perfectly steady throughout the year. PBK has signed a...
-
A steel cable having a diameter of 0.4 in. wraps over a drum and is used to lower an elevator having a weight of \(800 \mathrm{lb}\). The elevator is \(150 \mathrm{ft}\) below the drum and is...
-
Foxx Corp. purchased 75% of the outstanding shares of Rabb Ltd. on January 1, Year 3, at a cost of $117,000. Non-controlling interest was valued at $35,000 by an independent business valuator at the...
-
Given the standard form for a straight line (y=mx + b) and Eq. 7, we can assume m = (L k Q 2 )/mg. Measure the length L and let g = 9.8 m/s2 and k = 9.0 x 109 N-m2 /C2 . For the mass of the puffs and...
-
Tim Hayden was at Busch Stadium, the home of the St. Louis Cardinals when Mark McGwire hit his record breaking 70 th homerun of the season, however, he missed it as he was in line at the concession...
-
Suppose that you have a money market certificate earning an annual rate of interest, which varies over time as follows: If you invest $10,000 in this certificate at the beginning of year one and do...
-
An individual makes five annual deposits of $2,000 in a savings account that pays interest at a rate of 4% per year. One year after making the last deposit, the interest rate changes to 6% per year....
-
Find the fixed field of the automorphism or set of automorphisms of E. { 2 , 3 }
-
Prepare and submit a table summarizing the major differences and similarities of these different delivery system agreements. The different delivery systems agreements are Design-Bid-Build,...
-
On December 1, Dmitry Company executes a three-month, 6% note receivable, with a face value of $15,000. What amount of interest income is accrued at December 31 on the note ? At the end of March, the...
-
Consider the two regions in the state of Central Ulna, Dockside and Lakeside. In both of these communities, household workers produce anchors and flour. Dockside workers: Produce 16 anchors or 4...
-
Your work colleague has estimated a regression to predict the monthly return of a mutual fund (Y) based on the return of the S&P 500 (X). Your colleague expected that the "true" relationship is Y =...
-
Using both manual calculations and Moffcalc, calculate the monthly payment for a $416,000 loan. The loan is for 15 years. The Nominal Annual Interest Rate is 11.39%. What is the Effective Interest...
-
What is a fact table in a data warehouse?
-
Why is it important to understand the macro-environment when making decisions about an international retail venture?
-
Before committing to a 10-year lease, it was decided to consider one more alternative. Instead of simply augmenting the existing generator with a new 40-kW unit, this alternative calls for replacing...
-
Machine A was purchased last year for $18,000 and had an estimated MV of $2,000 at the end of its six-year life. Annual operating costs are $1,600. The machine will perform satisfactorily over the...
-
A company is considering replacing a machine that was bought six years ago for $60,000. The machine, however, can be repaired and its life extended by five more years. If the current machine is...
-
Find V 1 V 5 V source I 2 I 3 I 4 I 5 R 1 R 2 R 3 R 4 R total. V 2 = 6 0 . 0 V , V 3 = 9 0 . 0 V , V 4 = 5 0 . 0 V , I 1 = 1 . 5 A , I total = 4 . 0 A , R 5 = 3 0 ohms. Indicate where appropriate....
-
Two point charges, -2.4C and 5.616 C, are placed at x = 0 cm and x = 9.7 cm, respectively. Consider the x- axis directed to the right. 1.0p 8a At what point along the x axis is the electric field...
-
As you know, the value of. It is defined as the ratio of the circumference of a circle C divided by its diameter 2r. That is x-C/2. a) Let's assume that you measured a circumference of a circle to be...
Study smarter with the SolutionInn App