Question: Problem 4-1: Compound Interest Rate To what amount will the following investments accumulate? a. 2,750 SAR invested for 5 years at 8% compounded annually b.

Problem 4-1: Compound Interest Rate

To what amount will the following investments accumulate?

a. 2,750 SAR invested for 5 years at 8% compounded annually

b. 15,000 SAR invested for 12 years at 7% compounded annually

c. ,500 SAR invested for 9 years at 15% compounded annually

d. 30,000 SAR invested for 5 years at 4% compounded annually

Problem 4-2: Future values calculations

You are hoping to purchase a business in the future and recently received an inheritance of 150,000 SAR. You like to use your inheritance as down payment for the business.

a. If you use your inheritance in an account that generates 6% returns compounded annually, how many years will it take before your money grows to 875,000SAR?

b. If you let your money grow for 20 years at 5%, how much will you have in your account?

Problem 4-3: Present value calculations

What is the present value of the following future amounts?

a. 15,500 SAR received from 5 years from now at 8%.

b. 105,500 SAR received from 10 years from now at 10%

c. 35,500 SAR received from 15 years from now at 12%.

d. 10,500 SAR received from 8 years from now at 7%.

Problem 4-4 Financial Ratios

The Balance Sheet and the Income Statement for Allways Corporation are as follows:

DATA (All amounts in SAR unless otherwise indicated, all sales are on credit)

Allways Corporation Balance Sheet

2019

Cash

250

Accounts receivable

550

Inventories

750

Other current assets

200

Total current assets

1750

Gross fixed assets

2500

Accumulated depreciation

-1000

Net fixed assets

1500

Total assets

3250

LIABILITIES (DEBT) AND EQUITY

Accounts payable

375

Short-term notes payable

190

Total current liabilities

565

Long-term debt

1100

Total liabilities

1665

Common stock (par & paid in capital)

1500

Retained earnings

1550

Total common equity

2600

Total liabilities and equity

4265

Allways Corporation Income Statement

2019

Sales

7500

Cost of goods sold

-4250

Gross profits

3250

Operating expenses:

Selling and G&A expenses

-750

Depreciation expenses

-250

Total operating expenses

-1000

Operating income (earnings before interest and taxes)

2250

Interest expense

-150

Earnings before taxes

2100

Income taxes

-270

Net Income

1830

Number of shares (thousands)

225

Dividends (thousands)

150

Market price per share

35

Current ratio

Acid-test ratio

Days in receivables

Days in inventories

Operating return on assets

Operating profit margin

Total asset turnover

Fixed asset turnover

Debt ratio

Times interest earned

Return on equity

Earnings per share

Dividends per share

Price/Earnings

Book value per share

Market/Book

Problem 4-5: Present value of annuity calculations

What is the present value of a 7-year annuity that pays 1000SAR, given a

6% discount rate?

Problem 4-6: Future value of annuity calculations

Find the future value at the end of year 7 of an annuity that pays 750SAR

per year for 7 years compounded at 6% annually. What would be the future value of

this annuity?

Problem 4-7: Annuity Payments

You want to have 1,250,000SAR in 32 years by making equal end-of-the-year deposits into a tax-deferred account paying 9.5% annually. What annual amount should you deposit?

please I need the answer for the last question,

Problem 4-1: Compound Interest Rate To what amount will the following investments

File Edit View Insert Format Data Tools Help Last edit was seconds ago 100% $ % ._.00 123 Default (Ca... 11 B I SA - fx A B D E F Problem 6-7 Month Returns Returns Index Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Averae Returns Standard deviation Stock Prices 58.40 53.49 44.25 45.89 46.68 44.68 47.24 49.53 49.37 48.06 51.60 54.44 -8.4% -17.3% 3.7% 1.7% -4.3% 5.7% 4.8% -0.3% -2.7% 7.4% 5.5% -0.4% 7.4% 28256.03 25409.36 21917.16 24345.72 25383.11 25812.88 26428.32 28430.05 27781.7 26501.6 29638.64 30606.48 -10.1% -13.7% 11.1% 4.3% 1.7% 2.4% 7.6% -2.3% -4.6% 11.8% 3.3% 1.0% 8.1%

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