Find the principal P that must be invested at rate r, compounded monthly, so that $1,000,000 will be available for retirement in
1 answer:
Answer:
$224,174
Explanation:
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The Principle P that is required can be calculated from the given data though discounting future cash flows as follows :
FV = $1,000,000
r = 7½%
t = 20 × 12 = 240
P/yr = 12
Pmt = $0
PV = ?
Using a Financial Calculator to input the values as shown above, the PV would be $224,174 . Thus, the principal P that must be invested must be $224,174.
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Answer:
I. 14.50%
II. 3.55
III. 51.48%
Explanation:
Kindly observe your question is incomplete but i found the other section of the question
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Based on the costs of acquisition of Walmart by Amazon, the total transaction costs would come to B. $22,002.
<h3 /><h3>What are the total transaction costs?</h3>Equity financing cost:
= 5.5% x 241,350.75
= $13,274.29
Debt financing cost:
= 1.5% x 241,350.75
= $3,260.26
Other transaction costs:
= $3,000
Target debt redemption premium:
= 70,242 x 3%
= $2,107.26
The total transaction costs are:
= 13,274.29 + 3,260.26 + 3,000 + 2,107.26
= $22,002
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