Answer: $12477.27
Explanation:
The formula to find the compound amount after t years (compounded semiannually) :-
Given : Principal amount : P = $ 8,000
Rate of interest :
Time : 9 years
Now,
The final amount in the account will be $12477.27
a project with an initial cost of 63800 is expected to generate annual cash flow of 16580 for the next 6 years what is the Proje
1 answer:
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Answer:
attached table
Explanation:
We use goal seek of excel to determinate the market rate:
Which is the rate that discounting the coupon payment and maturity matches the 5,421,236 we receive for the bond:
C 200,000.000
time 10
rate 0.<em>030117724</em>
PV $1,705,016.0533
Maturity 5,000,000.00
time 10.00
rate <em>0.030117724</em>
PV 3,716,219.95
PV c $1,705,016.0533
PV m $3,716,219.9467
Total $5,421,236.0000
Now, we determiante the schedule by doing as follow:
carrying value x market rate = interest expense
cash outlay per period: face value x coupon rate
the amortization will be the difference
after each payment we adjust the carrying value by subtracting the amortization
