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,

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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