You lent money to a friend. He has proposed 3 different repayment plans to repay you...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You lent money to a friend. He has proposed 3 different repayment plans to repay you in 4 years. Which of the following repayment plans should you prefer? Select one: a. Yr1 Rs500, Yr2 Rs400, Yr3 Rs300, Yr4 Rs200 b. Yr1 Rs350, Yr2 R$350, Yr3 Rs350, Yr4 Rs350 c. Any of the above since they all add to Rs1400 d. Yr1 Rs200, Yr2 Rs300, Yr3 R$400, Yr4 Rs500 You lent money to a friend. He has proposed 3 different repayment plans to repay you in 4 years. Which of the following repayment plans should you prefer? Select one: a. Yr1 Rs500, Yr2 Rs400, Yr3 Rs300, Yr4 Rs200 b. Yr1 Rs350, Yr2 R$350, Yr3 Rs350, Yr4 Rs350 c. Any of the above since they all add to Rs1400 d. Yr1 Rs200, Yr2 Rs300, Yr3 R$400, Yr4 Rs500
Expert Answer:
Answer rating: 100% (QA)
SOLUTION Using Yahoo Finance the yield or interest rate for the 10year Treasury bond on August 1 2006 was 499 This will be used as the discount rate for the remainder of the problem The timeline for N... View the full answer
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date:
Students also viewed these accounting questions
-
Calculate the present value of a $150,000, 7%, 10-year bond that pays $10,500 ($150,000 7%) interest annually, if the market rate of interest is 7%. Use Exhibits 3 and 4 for computing present values.
-
Calculate the present value of an $80,000, 10%, five-year bond that pays $8,000 ($80,000 10%) interest annually, if the market rate of interest is 10%. Use Exhibits 3 and 4 for computing present...
-
Calculate the present value of the following singleamounts. Future Value $10,000 7,000 6,000 Annual Rate Interest Compounded Period Invested 1. 2. 6% Annually Semiannually Quarterly 5 years 8 years 4...
-
2. A magazine printer is considering taking on a new weekly publication. The company's financial officer has researched and determined costs and a committee of upper management personnel are deciding...
-
Should the concept of lean inventory systems always focus solely on minimizing inventory levels? Why or why not?
-
Discuss how a company can get sales and operations to work together with the common goal of coordinating supply and demand to maximize profitability.
-
Hillcrest Corporation reported the following accounts: Prepare the stockholders' equity section of the Hillcrest balance sheet. Cost of goods sold $58.800 Accounts payable $ 6.000 Paid-in capital in...
-
Passion Company is trying to decide whether or not to acquire Desiree Inc. The following balance sheet for Desiree Inc. provides information about book values. Estimated market values are also...
-
Find derivatives and simplify. 1. y = (7x-2) ex 2. y = in [x" 3x-7] Find each Integral 3. f4x-7x 30 (4x-7x+3x-5 dx x 2 (4.) x 2 x - 3 dx 5 f5 e-2x dx 8 S X+5 15x-4 dx 7. Find im Inx XUX SX 8. Find...
-
a. Cyclotron resonance for a spheroidal energy surface. Consider the energy surface e(k) = h 2m, (k+ k k 2m where m, is the transverse mass parameter and m, is the longitudinal mass parame- ter. A...
-
Derive an expression for the magnetic field at the site of the nucleus in a hydrogen atom due to the circular motion of the electron. Assume that the atom is in its give answer in terms of ground...
-
Choose two competing UK organisations (e.g., companies) in a sector of your choice, critically compare their operations strategies to achieve both market competitiveness and sustainability.You are...
-
Rajib flies a small plane a distance of 2000 miles. Because he is flying into a headwind, the trip takes 10 hours. On the way back, the wind is still blowing in the same direction with the same wind...
-
A visitor to a medieval castle measures the depth of a well by dropping a stone and timing its fall. She finds the time to fall is t = 10.0 1.0 sec and calculates the depth as d = gt2. What is her...
-
A black hole of ten solar masses is emitting blackbody radiation while also absorbing mass from a surrounding accretion disk. In order for the black hole to remain at a constant mass, what must be...
-
What angular velocity would result in a centripetal acceleration of 25 ft/s^2 if the radius of the curve is 100' ? What velocity in MPH is would be required to make a 33 degree elevated banked turn...
-
Calculating Future Values Go to www.dinkytown.net and follow the Savings Calculator link. If you currently have $10,000 and invest this money at 9 percent, how much will you have in 30 years? Assume...
-
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A (by letter) with the item from List B that is...
-
Burtard Company develops and sells graphics software for use by architects. Journalize the entries to record the following selected transactions of Burtard Company: a. Purchased for cash $450,000 of...
-
Assume that the error in Exercise 3-15 was not corrected and that the $3,910 of accrued salaries was included in the first salary payment in January. Indicate which items will be erroneously stated,...
-
Differences between the accounting methods applied to accounts and financial reports and those used in determining taxable income yielded the following amounts for the first four years of a...
-
When there is a concentration gradient in the system, show that the potential gradient is composed of two terms, (i) an Ohm's-law contribution and (ii) a diffusional contribution. State the equation...
-
Copper is deposited at a cathode from solution with a bulk concentration of \(0.5 \mathrm{M}\) at the rate of \(3.0 \mathrm{~g} / \mathrm{m}^{2} \cdot \mathrm{s}\). Find the surface concentration of...
-
Find the mobility of \(\mathrm{H}^{+}, \mathrm{OH}^{-}\), and other ions from the diffusivity data given in Table 22.1. Table 22.1. Diffusion coefficients of ions in water at 25 C. H+ Na+ K+ Ca+ OH-...
Study smarter with the SolutionInn App