29 Jun Question Worksheet 1 – Time Value of Money
Question
Worksheet 1 – Time Value of Money
Scenario 1
Jonas Smith wants to accumulate a sum of money to pay for his MACC
program. Rather than investing a single amount today, he decides
to invest $5,000 a year over the next three years in a savings account
account paying 8% interest compounded semi-annually. He decides to
make the first payment to the bank immediately. How much will Jonas
have available in his account at the end of three years?
Scenario 2
Assume that you borrow $1,000 from a friend and intend to repay the
amount in five equal annual installments beginning one year from today.
Your friend wishes to be reimbursed for the loan at 7% per year.
What is the required annual payment that must be made to repay the
loan in five years?
Scenario 3
On June 30, 2010, Greyson Inc. issued $200 million of 10% bonds.
The bonds pay interest semi-annually and mature on June 30, 2030.
They were sold to yield 12% interest. What is the selling price of the
bond?
Instructions:
Using the tables at the back of Chapter 6, answer the questions above.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.