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Sindrei [870]
1 year ago
15

Present value calculations The present value or "PV function" in Excel is used to calculate the current value of future payments

. Consider this example: Suppose your uncle sends you a $10,000 certificate of deposit in your name which will earn 4% interest for the investment period. Under the terms of his gift, you can withdraw the funds after 4 years on the day of your graduation. Use Excel functions to calculate the value of the amount your uncle deposited today to have $10,000 after you graduate. (Note: The certificate of deposit calculates and pays any earned interest at the beginning of each year.)
Business
1 answer:
FromTheMoon [43]1 year ago
6 0

Answer:

PV= $8,548.04

Explanation:

Giving the following information:

Final value= $10,000

n= 4 years

i= 4% compounded annually.

We need to use the following formula:

PV= FV/(1+i)^n

PV= 10,000/(1+0.04)^4

PV= $8,548.04

Your uncle needs to deposit $8,548.04 today in order to have $10,000 in four years.

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A well-known industrial firm has issued $1,000 bonds that carry a 4% coupon interest rate paid semiannually. The bonds mature 20
Flauer [41]

Answer:

5.59%

Explanation:

$1,000 bonds carrying a 4% coupon rate, semiannual coupon $20, matures in 20 years

if you purchase the bonds at $715, the nominal annual rate of return = coupon payments / bond price = ($20 + $20) / $715 = $40 / $715 = 5.59%

The nominal annual rate of return is calculated by dividing the revenue generated by an investment by the cost of the investment.

8 0
1 year ago
Management's greatest single concern is ________, which is the movement of money through an organization over a daily, weekly, m
d1i1m1o1n [39]

The movement of money through an organisation over a a daily, weekly, monthly, or yearly basis.

3 0
2 years ago
Production and sales estimates for June are as follows:
barxatty [35]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Expected sales volume (units):

Area X 4,000

Area Y 10,000

Area Z 6,000

Unit sales price $25

The total budgeted sales are the result of multiplying the sales in units for the selling price:

Total sales= selling price* number of units

Total sales= (4,000 + 10,000 + 6,000)*25= $500,000

4 0
2 years ago
The maintenance expenses on a rental house you own average $200 a month. The house cost $219,000 when you purchased it four year
Serhud [2]

Answer:

value we place on this house when analyzing the option of using it as a professional office is $225000

Explanation:

Given data

house cost 4 year ago  = $219,000

house valued = $239,000

real estate fees = $14000

property taxes = $4,000

to find out

What value should you place on this house

solution

we know if we sell house we should pay real estate fee

so we get need money to place is present cost - real estate fees

so cost will be

cost = house valued  - real estate fees

cost = 239000 - 14000

cost = 225,000

so value we place on this house when analyzing the option of using it as a professional office is $225000

0 0
2 years ago
The Hutters filed a joint return for 2019. They provide more than 50% of the support of Carla, Ellie, and Aaron. Carla (age 18)
sergey [27]

Answer:

Hutters can be claim two dependents

Explanation:

we know here that Hutters can be claim two dependents

because here given Carla and Ellie as Aaron meets neither the residency nor citizenship requirement

but Carla is a qualifying relative and is under the age of 24

but Ellie is above 24 but is a qualifying relative as scholarship is non-taxable

so

we can say that answer is two

8 0
1 year ago
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