Answer:
$73,254.81
Explanation:
We assume fees paid as annuity (PMT). Now, we have to find Present Value (PV) of annuity
PV = PMT*(1- 1/(1+r)^n) / r
Where PMT = 10000, n = 8 payments, r r = 4.0%/2 = 2% = 0.02
PV = $10,000 * (1 - 1/(1+0.02)^8) / 0.02
PV = $10,000 * (1 - 1/1.171659381) / 0.02
PV = $10,000 * 0.146509629 / 0.02
PV = $73254.8145
PV = $73,254.81
$73,254.81 is the money i must deposit today if i intend to make no further deposits and would like to make all the tuition payments from this account.
Answer:
A) Based on NPV, Mike will choose 2nd influencer.
B) Based on IRR, Mike will choose 2nd influencer.
Explanation:
See images to get the appropriate answer:
Answer:
The student invests $60 each month and the interest rate is 6%. The interest rate is compounded monthly so we will take the interest rate as 0.5% (6/12).
The number of periods will be 420 (35*12) as the payments are made every month.
The present value is 0 as he is not making any investment at the start.
We need to find the future value of these payments, and for that we need to put these values in a financial calculator
PV= 0
PMT= 60
I= 0.5
N=420
Compute FV
FV=85,482
The total accumulated amount in the students annuity will be $85,482.
Explanation:
Answer:
236.23
Explanation:
The computation of X is shown below:-
As per the time-weighted method
The 6-month yield
= (40 ÷ 50) × (80 ÷ 60) × (157.50 ÷ 160) - 1
= 5%
Annual equivalent = (1.05)^2 - 1
= 10.25%
1 - year yield = (40 ÷ 50) × (80 ÷ 60) × (175 ÷ 160) × (X ÷ 250) - 1
= 0.1025
X(0.004667) = 1.1025
X = 236.23
Therefore on December 31st the value of account of X = 236.25
If the number is 12,759 and they ask to round to the nearest 10,000 then you look at the thousands place (where the 2 is) and is its less than 5 round down and if its more round up. so the answer would be 10,000
