QUESTION 2 a) Compute the amount would you have to invest in order to receive the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION 2 a) Compute the amount would you have to invest in order to receive the amount as stated in cases below: i. RM 15,000 in 4 years 3 months at 10 percent compounded annually. ii. RM 20,000 in 5 years 6 months at 13 percent compounded quarterly. iii. RM 5,000 in 5 years 6 months at 9 percent compounded monthly. (6 Marks) b) If you invest RM 9,000 today, compute the amount that will you have: i. In 2 years, 8 months earning an interest of 9 percent per semiannually ii. In 25 years earning an interest of 14 percent per quarterly. (4 Marks) c) Ali wants to provide for a college education. If he deposits RM500 at the end of each year for the next 5 years in a bank, earning 6% interest compounded annually. Compute the amount Ali will have at the end of 5 years. (5 Marks) d) Julie Miller is borrowing $10,000 at a compound annual interest rate of 15%. Find the amortizing a loan if annual payments are made for 10 years. (10 Marks) QUESTION 2 a) Compute the amount would you have to invest in order to receive the amount as stated in cases below: i. RM 15,000 in 4 years 3 months at 10 percent compounded annually. ii. RM 20,000 in 5 years 6 months at 13 percent compounded quarterly. iii. RM 5,000 in 5 years 6 months at 9 percent compounded monthly. (6 Marks) b) If you invest RM 9,000 today, compute the amount that will you have: i. In 2 years, 8 months earning an interest of 9 percent per semiannually ii. In 25 years earning an interest of 14 percent per quarterly. (4 Marks) c) Ali wants to provide for a college education. If he deposits RM500 at the end of each year for the next 5 years in a bank, earning 6% interest compounded annually. Compute the amount Ali will have at the end of 5 years. (5 Marks) d) Julie Miller is borrowing $10,000 at a compound annual interest rate of 15%. Find the amortizing a loan if annual payments are made for 10 years. (10 Marks)
Expert Answer:
Answer rating: 100% (QA)
a i Amount P1 rnnt RM 15000 P1 010114 312 RM 15000 P110425 P RM 15000 110425 P RM 1... View the full answer
Related Book For
Foundations of Finance The Logic and Practice of Financial Management
ISBN: 978-0132994873
8th edition
Authors: Arthur J. Keown, John D. Martin, J. William Petty
Posted Date:
Students also viewed these finance questions
-
QUIZ... Let D be a poset and let f : D D be a monotone function. (i) Give the definition of the least pre-fixed point, fix (f), of f. Show that fix (f) is a fixed point of f. [5 marks] (ii) Show that...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
What other cost factors might you include in such an economic analysis? The proposed small office building in Example 3-2 has 24,000 net square feet of area heated by a natural gas furnace. The owner...
-
Explain the types of situations where each channel or technique would be most effective. Provide examples and facts for your audience. Avoid simply offering an opinion; rely on valid, academic...
-
The accompanying table shows a portion of the results from conducting a two-way ANOVA test with no interaction in which five different production methods (factor A, columns) were evaluated in terms...
-
Consider the following cash flow profile and assume MARR is 10 percent/year. a. What does Descartes' rule of signs tell us about the IRR(s) of this project? b. What does Norstrom's criterion tell us...
-
Frandec Company manufactures, assembles, and rebuilds material handling equipment used in warehouses and distribution centers. One product, called a Liftmaster, is assembled from four components: a...
-
Q5). Given the graph y= f(x), graph y=[-2(x-1)]-2 on the same grid on your right. Use at least 4 points: Show steps
-
On January 1, 2020, Cookie Ltd. receives a four-year, $100,000 zero-interest-bearing note. The market interest rate for similar notes is 5%. The company reports under IFRS and has a December 31...
-
What are the intricate considerations entailed in power management strategies within operating systems, and how do sophisticated techniques optimize energy consumption, prolong battery life, and...
-
Round your answers to three decimal places, if needed. Find the absolute extrema of the function f(x, y) = 1.4x+4.7y2 - 1.2x-3.5y on the region bounded by y=x, y = 3, and x = 0. The absolute maximum...
-
Consider the following abbreviated financial statements for Parrothead Enterprises: PARROTHEAD ENTERPRISES 2020 and 2021 Partial Balance Sheets Assets 2020 2021 Liabilities and Owners' Equity 2020...
-
These partially completed Income Statement columns from a 10-column work sheet are for Browns Bike Rental Company. Account Title Debit Credit Rent earned 138,000 Salaries expense 61,272 Insurance...
-
You are preparing your hospital staffing plan for the upcoming flu season. You have access to the CDC's Flu Weekly updates but need to better understand how the flu season has impacted your hospital...
-
5 points : Using a suitable size ROM, design a Hex to Gray code converter circuit. What is the size of ROM required? Insert solution ( handwriting) Using a PLA, Design a circuit that implements the...
-
Highland Theatre is owned by Finnean Ferguson. At June 30, 2014, the ledger showed the following: Cash, $6,000; Land, $100,000; Buildings, $80,000; Equipment, $25,000; Accounts Payable, $5,000;...
-
Phillips Petroleum is an integrated oil and gas company with headquarters in Bartlesville, Oklahoma, where it was founded in 1917. The company engages in petroleum exploration and production...
-
Dell Computer Corporation (DELL) has long been recognized for its innovative approach to managing its working capital. Describe how Dell pioneered the management of net working capital to free up...
-
A companys financial statements consist of the balance sheet, income statement, and statement of cash flows. Describe what each statement tells us.
-
In small groups, discuss the worst or most difficult interview questions you have ever received. Add to your list by searching the internet for weird or unusual questions. Review your list and...
-
Research a geographic area where you would like to work. Investigate the cost of living, industrial growth in the area, weather and climate, and attractions in the area you could visit. The local...
-
The required rate of return is 12%, and the expected rate of inflation over the life of the project is forecast to remain steady at 3%. Should you invest in this project?
Study smarter with the SolutionInn App