Question
In: Finance
using excel functions Using Table 13.1, (a) find the value of an investment after 4 years...
using excel functions
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Using Table 13.1, (a) find the value of an investment after 4 years on an ordinary annuity of $5,000 made semiannually at 4%; and (b) recalculate, assuming an annuity due.
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Wally Beaver won a lottery and will receive a check for $2,500 at the beginning of each 6 months for the next 6 years. If Wally deposits each check into an account that pays 6%, how much will he have at the end of the 6 years?
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Today Arrow Company issued bonds that will mature to a value of $120,000 in 20 years. Arrow’s controller is planning to set up a sinking fund. Interest rates are 6% compounded semiannually. What will Arrow Company have to set aside to meet its obligation in 10 years? Check your answer. Your answer will be off due to rounding of Table 13.3.
Solutions
Expert Solution
1)
a)
Hence value of an investment is 42,914.85
b)
Hence value of an investment is 43,773.14
jeff jeffy answered 2 years agoRelated Solutions
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Find the Macaulay duration of Bond ABC in years by using an
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Bond ABC
Coupon
8%
Yield to maturity
9%
Maturity (years)
5
Par
$100.00
Price
$96.0436
Find the Modified duration of Bond ABC in years by using an excel table. (4 digits...
Find the Modified duration of Bond ABC in years by using an
excel table. (4 digits after the decimal)
Bond ABC
Coupon
8%
Yield to maturity
9%
Maturity (years)
5
Par
$100.00
Price
$96.0436
4. what is the future value of a $10,000 investment after 5 years with a 8%...
4.
what is the future value of a $10,000 investment after 5 years with
a 8% interest rate per year, compounded annually?
Complete the following table using the Excel functions like we did for homework: Hint: There is...
Complete the
following table using the Excel functions like we did for
homework:
Hint: There is no function for
calculating coupon payments.
(Assume semi-annual coupon
payments and the bond's par value is $1,000.)
Bond
Coupon Rate
Yield to Maturity
Periods to Maturity
Annual Coupon Payment
Current Bond Value
Discount or Premium
A
3.0%
5.0%
10
B
4.5%
4.0%
10
C
3.5%
6.0%
10
D
5.0%
5.0%
10
E
11.0%
10.0%
10
using excel and it's functions The table shows a sample of the maximum capacity (maximum number...
using excel and it's functions
The table shows a sample of the maximum capacity (maximum number
of spectators) of sports stadiums. The table does not include
horse-racing or motor-racing stadiums.
40,000
40,000
45,050
45,500
46,249
48,134
49,133
50,071
50,096
50,466
50,832
51,100
51,500
51,900
52,000
52,132
52,200
52,530
52,692
53,864
54,000
55,000
55,000
55,000
55,000
55,000
55,000
55,082
57,000
58,008
59,680
60,000
60,000
60,492
60,580
62,380
62,872
64,035
65,000
65,050
65,647
66,000
66,161
67,428
68,349
68,976
69,372
70,107
70,585
71,594...
An investment of $1,000,000 generates annual net incomes of $400,000 and salvage value of $300,000 after 4 years
An investment of $1,000,000 generates annual net incomes of $400,000 and salvage value of $300,000 after 4 years. At MARR=10% and an effective tax rate of 30% use MACRS with the depreciation life of 3 years to determine after tax PW.
excel problem Find the roots of the functions given using the bisection method. Use the graph...
excel problem
Find the roots of the functions given using the bisection
method. Use the graph of each function to choose points that
bracket the root of interest.
a. f(x) x-x^1/3-2
b.f(x)=xtanx-1
c.f(x)=x^4-e^x+1
d.f(x)x^2e^x-1
using excel functions Complete the following without a table (round each calculation to the nearest cent...
using excel functions
Complete the following without a table (round each calculation
to the nearest cent as
needed):
1. principal time rate of compounding interest
compounded NUMBER of periods compounded total amount Total
interest
$ 500 1 year 8% quarterly A. ? B. ? C.?
Solve the previous problem by using compound value (FV). See
Table 12.1.
Lionel Rodgers deposits $7,000 in Victory Bank, which pays 4%
interest compounded
semiannually. How much will Lionel have in his account at the...
Using the information provided in the following table, find the value of each asset: The value...
Using the information provided in the following table, find the
value of each asset:
The value of Asset A is
The value of Asset B
The value of Asset C
The value of Asset D
The value of Asset E
Asset
End of Year
Amount
Appropriate required return
A
1
$
7,000
8%
2
7,000
3
7,000
B
1 through∞
$
500
4%
C
1
$
0
5%
2
0
3
0
4
0
5
48,000
D
1 through...
Solve the following financial problems using the time value of money functions in Excel (PV, FV,...
Solve the following financial problems using the time value of
money functions in Excel (PV, FV, PMT, NPER, RATE, EFFECT)
OR using your financial calculator.
Assume you deposit $3,000 today, and $300 at the end of each
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General Electric has an unfunded pension liability of $300
million that must be paid in 15 years. The CFO deposits $10 million
in account today to help...
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