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Calculate the present worth of a 4.5%, $5000 bond with interest paid semiannually. The bond matures in 10 years, and the investor wants to make 8% per year.
If the investor wants to receive 8% interest, compounded semiannually, how much would he or she be willing to pay for the bond?
A Treasury bond with a face value of $5000 and a coupon rate of 6% payable semiannually was bought by Kirt. What did Kirt pay for the bond?
A zero-coupon bond (coupon rate = 0%) with a face value of $10,000 and maturity date in 5 years is being considered. How much should Meenakshi pay for the bond?
If the bonds mature in 20 years, how much will the city raise from issuing $3M in bonds.
What will the face value of the bonds have to be, if the bonds are to have an interest rate of 12% per year, payable quarterly, and a maturity date of 20 years?
Assume annual mortgage payments of $12,000 for 30 years and an interest rate of 6.168% per year. What initial principal or PW will this repay?
To economically evaluate this use, estimate the cost of the underutilized capacity for the bridge.
A project has a net present worth of -$14,000 as of January 1, 2015. If a 10% interest rate is used, what was the project NPW as of December 31, 2012?
How much would the owner of a building be justified in paying for a sprinkler system that will save $750 a year in insurance premiums.
Using a 10% interest rate, compute the net present worth of the alternative equipment for the 12-year analysis period.
A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. Why should the machine be purchased?
If maintenance costs are the only saving, what investment can be justified for the new surface? Assume interest at 4%.
He thinks he could resell the quarry at end of 5 years for $200,000. If contractor uses a 10% interest rate, how much would he be willing to pay for the quarry?
The corporation has a minimum rate of return of 10%. Do you recommend automating the process?
What is the present worth of the expected income? The firm's minimum attractive rate of return is 18% per year?
Determine the contract's present worth at a 7% interest rate. Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology.
What is the balance due on the original mortgage if 20 payments have been made in the last five years?
The local botanical society wants to ensure that the gardens in town park are properly cared for. How much money be needed to forever pay cost of replanting?
What lump sum must he donate to the university today if the endowment will earn 10% interest?
What lump sum of money will the Echo Corporation need to provide to establish the endowment fund?
What amount of money deposited 50 years ago at 8% interest would provide a perpetual payment of $10,000 a year beginning this year?
Equal annual withdrawals are to be made from the account, beginning one year from now and continuing forever. What is the maximum annual withdrawal?
The annual maintenance and operating costs are expected to be $12,000. Using a 12% interest rate, which machine should be chosen?
Which way would you purchase the magazine: With three 1-year subscriptions or a single 3-year subscription?