You lend a friend $30,000, which your friend will repay in five equal annual end-of-year payments of
Question:
You lend a friend $30,000, which your friend will repay in five equal annual end-of-year payments of $10,000, with the first payment to be received 1 year from now. What rate of return does your loan earn?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (17 reviews)
Given data P...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Foundations Of Finance
ISBN: 9780134083285
9th Edition
Authors: Arthur J. Keown, John H. Martin, J. William Petty
Question Posted:
Students also viewed these Finance questions
-
You are currently 30 years of age. You intend to retire at age 60 and you want to be able to receive a 20-year, $100,000 beginning-of-year annuity with the first payment to be received on your 60th...
-
The following questions are used in the Kaplan CPA Review Course to study the time value of money while preparing for the CPA examination. Determine the response that best completes the statements or...
-
Youve been offered a loan of $30,000, which you will have to repay in five equal annual payments of $10,000, with the first payment to be received one year from now. What interest rate would you be...
-
You have $300,000 saved for retirement. Your account earns 6% interest. How much will you be able to pull out each month, if you want to be able to take withdrawals for 20 years? $ Get help: Video
-
What is the value of the exchange rate that satisfies absolute PPP?
-
Derive the expression for the shape-efficiency factor \(\phi_{B}^{e}\) for stiffness-limited design for a circular tube with outer radius \(5 t\) and wall thickness \(t\), loaded in bending (Fig....
-
Which is the oldest appraisal organization? What certificate does it issue? Where is its home office
-
1. Name at least three mistakes that Sherman made in interviewing Lee and Jackson. 2. The chapter identifies some of the characteristics of a good interview. In what ways could Sherman have changed...
-
A company reported ending inventory of $85,000 in year 1. It was discovered in year 2 that the correct value of the ending inventory was $86,000 for year 1. Complete the following table based on this...
-
The cast-iron bell-crank lever depicted in the figure is acted upon by forces F1 of 250 lbf and F2 of 333 lbf. The section A-A at the central pivot has a curved inner surface with a radius of ri = 1...
-
After graduating from college in December 2014, Elizabeth Arce started her career at the W&T Corporation, a small- to medium-sized warehouse distributor in Nashville, Tennessee. The company was...
-
Should we have bet the kids' college fund at the dog track? Let's look at one specific case of a college professor (let's call him Prof. ME) with two young children. Two years ago, Prof. ME invested...
-
In the model E(y) = 0 + 1x + 3x2, a. Which b represents the y -intercept? b. Which b represents the shift? c. Which b represents the rate of curvature?
-
An isolated conducting sphere of radius 10cm, initially uncharged, is illuminated by ultraviolet light of wavelength 210nm. With each photoelectron emitted from the conductor, there will be an...
-
What would be considered the biggest advantage of using practical capacity to allocate costs?
-
You have an opportunity to invest $49,600 now in return for $59,300 in one year. If your cost of capital is 8.2%, what is the NPV of this investment? The NPV will be $ (Round to the nearest cent)
-
What are the similarities and differences between marketing, advertising, and sales?
-
Periodic Payment Term Compute the future value of the following ordinary annuities. For full marks your answer(s) should be rounded to the nearest cent. Payment Interval Interest Compounding Future...
-
A fire destroys all of the merchandise of Assante Company on February 10, 2014. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2014 $ 400,000 Sales revenue...
-
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
-
The preferred stock of Armlo pays a $ 2.75 dividend. What is the value of the stock if your required return is 9 percent?
-
You own 250 shares of Dalton Resources preferred stock, which currently sells for $ 38.50 per share and pays annual dividends of $ 3.25 per share. a. What is your expected return? b. If you require...
-
You are planning to purchase 100 shares of preferred stock and must choose between Stock A and Stock B. Stock A pays an annual dividend of $ 4.50 and is currently selling for $ 35. Stock B pays an...
-
Exam 2 (Chapters 6 & 7) 8 8. Problem (2 parts) 12 points Saved Needing to raise more capital, you advised the board to issue more shares of preferred stock. The dividend is $4.60 every year, not...
-
Chapter 17 covers Solution-Focused, Narrative Therapy, and Psychodrama Groups. However, not minimizing the effectiveness of psychodrama group, for this discussion compare and contrast narrative...
-
For the next FIVE problems: Do INCREASES in the following balance sheet items INCREASE or DECREASE Cash Flow relative to Net Income? Answer INCREASE or DECREASE. Accounts Receivable? accounts...
Study smarter with the SolutionInn App