Answer:
ordinary // annnuity-due
1.- 4,521.65 // 4,883.38
2.- 1,572.64 // 1,635.54
4.- 3,000.00 // 3,000
Explanation:
C 600.00
time 12
rate 0.08
PV $4,521.6468
Annuity-due
PV $4,883.3786
C 300.00
time 6
rate 0.04
PV $1,572.6411
Annuity-due
1,572.6411 x 1.04 = $1,635.5467
4.- as interest rate is 0% the money do not lose value over time
will be 3,000 regardless of time or type of annuity
In dangerous professions like law enforcement and construction, women are respected. Since these jobs are dangerous, many women are not often interested in working in these career fields. Due to the smaller number of women who will work in the career fields, those who do are highly respected by their peers.
Answer:
Present value of the cashflow discounted at 5% per year 76,815.65
Explanation:
First, we calculate the present value of the 4 years 15,000 dollar annuity:
C 15,000.00
time 4
rate 0.05
PV $53,189.2576
Now, we discount two more year as lump sum as this is two year after the invesmtent:
Maturity 53,189.26
time 2.00
rate 0.05000
PV 48,244.2245
Finally we also discount the 30,000 by one year
30,000 / 1.05 = 28571.43
<em><u>We add up both to get the present value:</u></em>
48,244.22 + 28,571.43 = 76,815.65
Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par.-The correct statement is -<u>The bonds will sell at a premium if the market rate is 5.5</u>
Explanation:
The important point to be noted from the given question is that the bond is offered when the market rate is 6 percent.
So ,the bonds are said to selling at premium since the market rate has reduced from 6% to 5.5%
In this case it is right to say that -Green Roof Inns is preparing a bond offering with a 6 percent, semiannual coupon and a face value of $1,000. The bonds will be repaid in 10 years and will be sold at par.-The correct statement is -<u>The bonds will sell at a premium if the market rate is 5.5</u>