A contract requires payments of $1500, $2000, and $1000 in 100, 150, and 200 days, respectively, from

Question:

A contract requires payments of $1500, $2000, and $1000 in 100, 150, and 200 days, respectively, from today. What is the value of the contract today if the payments are discounted to yield a 10.5% rate of return?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

See More Books

Question Posted: Jan 20, 2016 07:14 AM

See More Questions

A contract requires payments of $4000 today, $5000 in three years, and $6000 in five years. When can the contract be fulfilled by a single payment equal to the sum of the required payments if money...
Condon Company signed a lease contract to use a building for the next 25 years. Th e lease contract requires payments of $66,101 to be made at the end of each year for the next 25 years. If the...
A conditional sale contract requires two payments three and six months after the date of the contract. Each payment consists of $1900 principal plus interest at 12.5% on $1900 from the date of the...
A portfolio manager owns a bond worth 2,000,000 that will mature in one year. The pound is currently worth $1.65, and the one-year future price is $1.61. If the value of the pound were to fall, the...
Is it important to maintain separate accounts for a partner's outstanding loan and capital accounts? Explain why or why not.
Integrity is a very vital thing to possess in all areas of life and once it is compromised it can take forever to restore depending on the situation. That is why I always do my best to maintain...
A long, uninsulated steam line with a diameter of $100 \mathrm{~mm}$ and a surface emissivity of 0.8 transports steam at $150^{\circ} \mathrm{C}$ and is exposed to atmospheric air and large...
An opaque surface with the prescribed spectral, hemispherical reflectivity distribution is subjected to the spectral irradiation shown. (a) Sketch the spectral hemispherical absorptivity...
Psychology is a science and therefore it searches for natural knowledge using a number of research methods. These methods are very useful for studying the natural world and natural phenomenon. List...
The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers follow. Current inventory is 100 units. Current...
Is the price of a98-day $100,000 T-bill higher or lower than the price of a 168-day $100,000 T-bill? Why?
An investment promises two payments of $1000, on dates 60 and 90 days from today. What price will an investor pay today: a. If her required rate of return is 10%? b. Ifherrequiredrateofreturnis11%?...
Calculate Antarcticas current account balance, capital and financial account balance, and the increase in Antarcticas official reserves. The table gives some data that describe the economy of...
You are an entrepreneur starting a biotechnology firm. If your research is successful, the technology can be sold for $30 million. If your research is unsuccessful, it will be worth nothing. To fund...
What is your opinion of organizations using bona fide occupational qualifications (BFOQs) to limit who they will consider for a job?
In your opinion, is most discrimination in the United States unintentional (disparate impact), or is most discrimination intentional (disparate treatment)? Why do you think so?
Find two outside examples of how companies created new product lines as a result of identifying market opportunities or problems.
List three types of visuals and their purposes. How do visuals enhance marketing research reports?
Paint is poured onto a table, forming a circle which increases at a rate of 2.5 cm s . Find the rate the radius is increasing when the area of the circle is 20 cm.
Express these numbers in standard notation. a. 2.87 10-8 b. 1.78 1011 c. 1.381 10-23
Teddy plans on contributing $6,000 every year (the maximum allowable contribution in 2019) to his TFSA. What is the future value after 20 years if the funds earn 4.5% compounded annually?
What is meant by the term of an annuity?
The Consumer Price Index (based on a value of 100 in 2002) rose from 93.5 in 2000 to 115.1 in 2010. What was the (equivalent) annual rate of inflation in the first decade of the 2000s?
Given the function. f(x) = ln (2x+3x) Compute f'(x). Enter your answer rounded to the nearest tenth
A motor-cycle manufacturing company desires a profit of $600,000. The fixed costs are $800,000. The unit selling price of the motor-cycle is $750 and the variable cost per unit is $680. How many...
3. ZR Corporation's stock has a beta coefficient equal to 0.8 and a required rate of return equal to 11 percent. If the expected rate of return on the market is 12.5 percent, what is the risk-free...

A contract requires payments of $1500, $2000, and $1000 in 100, 150, and 200 days, respectively, from

Question:

Step by Step Answer:

Let the first payment P 1500 Time t 100 days Second payment P 2000 Time t 150 day...View the full answer

Business Mathematics In Canada

Students also viewed these Accounting questions