1. A man was offered a bank certificate with a face value of P100,000 which is...

1. A man was offered a bank certificate with a face value of P100,000 which is baring interest of 8% per year payable semi-annually and due in 6 years. If he wants to earn 6% semi-annually, how much must he pay the certificate?

2. A P110,00 chemical plant had an estimated life of 6 years and a projected scrap value of P10,000. After 3 years of operation, an explosion made it a total loss. How much money would have to be raised to put up a new plant costing P150,000 if a depreciation reserved have been maintained during its 3 years of operation by sinking fund method.

3. The corporation purchased a machine for 1 million pesos. Freight and installation charges amounted to 3% of the purchase price. If the machine shall be depreciated over a period of 8 years with a salvage value of 12%. Determine the depreciation charge during the 5th year using the sum of the years digit method.

4. A machine costing P45,000 is estimated to have a salvage value of P4,350 when retired at the end of 6 years. Depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciation in %?

Expert Solution

ekkarill92 answered 2 years ago

A discounted Certificate of Deposit with a face value of USD 2.5 million issued for a...

A discounted Certificate of Deposit with a face value of USD 2.5 million issued for a period of 90 days at a rate of 3.5%. 1. Between the buyer and issuer, who receives and who parts with money 2. What is the price at which this CD is transacted? 3. The CD is sold 45 days later at a rate of 3.75%. What is the selling price? Explain the two components generating the difference with the first price found. 4....

Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to...

Future value (with changing years). Dixie Bank offers a certificate of deposit with an option to select your own investment period. Jonathan has $9 comma 500 for his CD investment. If the bank is offering a 3% interest rate, compounded annually, how much will the CD be worth at maturity if Jonathan picks a a. two-year investment period? b. five-year investment period? c. eight-year investment period? d. twenty-year investment period?

You decide to invest $1,500 into a certificate of deposit (CD), which is a secure bank...

You decide to invest $1,500 into a certificate of deposit (CD), which is a secure bank investment option. a) If you choose a bank advertising a certificate of deposit with 1.2% APR compounded daily, how much money will be in this account at the end of 4 years? b) If you choose a bank advertising a certificate of deposit with 1.2% APR compounded monthly, how much money will be in this account at the end of 4 years? c) Which...

A 20-year bond with a face value of P5,000 is offered for sale at P3,800. The...

A 20-year bond with a face value of P5,000 is offered for sale at P3,800. The rate of interest on the bond is 7%, paid semiannually. This bond is now 10 years old (the owner has received 20 semiannual interest payments). If the bond is purchased for P3, 800, what effective rate of interest would be realized on this investment opportunity?

1.Which of the following is a temporary insurance contract? Certificate of insurance Certificate of evidence Promissory...

1.Which of the following is a temporary insurance contract? Certificate of insurance Certificate of evidence Promissory note Binder 2.Some of the primary responsibilities of a(n) _____________ underwriter include conducting market research, creating and revising underwriting guidelines, and conducting underwriting audits. line staff

Which money market is not created by a bank? Commercial paper Certificate of deposit Bankers acceptance...

Which money market is not created by a bank? Commercial paper Certificate of deposit Bankers acceptance Federal funds

You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000,...

You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000, and the price is $8,925.The bill matures in 1/2 year. Compute the YTM using both discrete and continuously compounded interest on excel

decided to invest in the Bank of America in a $ 10,000 certificate of deposit for...

decided to invest in the Bank of America in a $ 10,000 certificate of deposit for 5 years that pays an interest rate of 3.5% annually (simple interest). Suppose that the interest payment is sent annually to your home by check and that this money is taxable. When the certificate matures, he will receive his $ 10,000 back (non-taxable amount). Wesley's marginal tax rate is 24% and headline inflation is expected to be 2% per year. Determine for this investment...

Which of the following is not a type of program offered by the Ex-Im Bank. Group...

Which of the following is not a type of program offered by the Ex-Im Bank. Group of answer choices Bank insurance Guarantees Currency swap insurance Loans none of the options listed

Question 1.Based on the following current interest rates offered by the bank A and Bank B...

Question 1.Based on the following current interest rates offered by the bank A and Bank B , calculate the future value of an annuity of $100,000 made at the beginning of every year for 10 years using excel method. [Shows the formula] Bank A - 2.50% p.a Bank B - 2.35% p.a

Question