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    The Time Value of Money

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    The Impact of Varying Terms

    What would you expect the impact of varying terms (years needed to pay off the loan) and rates to be using TVM rules?

    Accounting Questions

    Using the time value of money concepts, offer guidance, include the following in your answer. 1-What TVM concept(s) is represented in the situation? 2-What is the value of the money represented by the situation? 3- How did you arrive at the value? Question 1 I have $10,000 cash to invest with a bank offering a 4% interest

    Principal balance on a particular loan

    I have a 30-year $100,000 mortgage loan with an APR of 6% and monthly payments. In 12 years I will sell my home and pay off the mortgage. What is the principal balance on the loan?

    Description of Present Value of Money

    Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for the next 10 years. What is the present value of this 20 year cash flow. Use a 11% discount rate. A) $19,034 B) $27,870 C) $32,389 D) none of the above

    Accounting

    Mr. Blochirt is creating a college investment fund for his daughter. He will put in $850 per year for the next 15 years and expects to earn a 8% annual rate of return. How much money will his daughter have when she starts college? A) $11,250 B) $12,263 C) $24,003 D) $23,079

    Loan Payment: Time Value of Money

    A home buyer signed a 20-year, 8% mortgage for $72,500. Given the following information, how much should the annual loan payments be? Present value of $1 PVIF = .2 Future value of $1 FVIF = 5. Present value of annuity PVIFA = 9.818 Future value of annuity FVIFA = 46.0 A) $5,560 B) $7,384 C) $8,074

    How is a home mortgage an example of TVM? How can you show that more interest is paid at the beginning of a loan period than at the end? What would you expect the impact of varying terms (years needed to pay off the loan) and rates to be using TVM rules?

    How is a home mortgage an example of TVM? How can you show that more interest is paid at the beginning of a loan period than at the end? What would you expect the impact of varying terms (years needed to pay off the loan) and rates to be using TVM rules?

    Time Value of Money for Withdrawal

    Suppose you inherited $200,000 and invested it at 6% per year. How much could you withdraw at the beginning of each of the next 15 years?

    Future Value

    I am lost on the formulas for this question. I do not understand with the ^n stands for in the formula. What is the future value of $15,000 if it is invested at 7.5% for a period of 13 years annually? What is the future value of $20,000 if it is invested at 6.5% for a period of 9 years quarterly? What is the present

    Future Value of a Dollar

    Al Rosen invests $25,000 in a mint condition 1952 Mickey Mantle Topps baseball card. He expects the card to increase in value 12 percent per year for the next 10 years. How much will his card be worth after 10 years?

    Time Value of Money for Companies

    Time Value of Money (TVM) Identify at least one financial application of TVM employed by each of the following businesses: A) Commercial Banks B) Credit card financial service companies B) Insurance companies D) State governments - lotteries E) Retirement plan financial service providers Please provide spec

    Present and future value of a dollar.

    5. How much would you have to invest today to receive: a. $15,000 in 8 years at 10% b. $20,00 in 12 years at 13% c. $6,000 each year for 10 years at 9% d. $50,000 each year for 50 years at 7%

    TVM (Time Value of Money) Questions

    You need $28,974 at the end of 10 years, and your only investment outlet is an 8 percent long-term certificate of deposit (compounded annually). With the certificate of deposit, you make an initial investment at the beginning of the first year. 1. What single payment could be made at the beginning of the first year to achiev

    PRESENT VALUE CONCEPT

    1. Your wealthy aunt has just established a trust fund for you that will accumulate to a total of $1000, 000 in 12 years. Interest on the trust fund is compounded annually at an 8 percent interest rate. How much is in the trust fund today? 2. On Jan. 1, you will purchase a new car. The car dealer will allow you to make increa

    Time, Money, Value

    Your uncle has given you three alternatives for your inheritance. You can have $5,000 now; $1,000 per year for the next eight years; or $12,000 at the end of eight years. You assume that you could earn 10% interest annually. What would be the best alternative? What you change your answer if the interest annually was 12%?

    Present Value Calculations

    1. Super-Fix Company would like to move its auto repair shop to a downtown location in order to attract more customers. What is the maximum Super-Fix should pay to purchase a building at the new location, assuming that the company needs to earn 12%. The new building will last 40 years. Super-Fix estimates that moving to the new

    How much will you need as a down payment to buy the boat?

    You want to purchase a boat that costs $40,000. you want to finance as much of the purchase as possible with a 5-year bank loan at 12% compounded monthly, but you can only afford loan payments of $750 per month. how much will you need as a down payment to buy the boat?

    Annuity in 40 Years

    If I invest 10,000 I will receive at graduation (age 22) in a mutual fund which averages a 12% annual return, how much will I have at retirement in 40 years?

    Investments Scenarios - Time Value of Money

    A. Starting with $10,000, how much will you have in 10 years if you can earn 15 percent on your money? b. If you inherited $25,000 today and invested all of it in a security that paid a 10 percent rate of return, how much would you have in 25 years? c. If the average new home costs $125,000 today, how much will it cost in 10

    Calculating Earnings Per Share: York Corp. Example

    Having problems getting answer for this question. Assume there are 300,000 shares of common stock authorized by York Corp. Of those 250,000 shares have been issued. Later, 50,000 of the issued shares were repurchased by York and currently held as treasury stock. Net income for the year was $800,000. Calculate the Earning

    Future Value Payments

    If you invest $100 a year for 25 years, making the payments at the end of the year, and the expected rate of return is 10% annually, how much will you have? Now assume that you made the above payments at the beginning of the year instead of at the end of the year. How much will you have?

    Finance Question

    You are saving for the college education of your two children. One child will enter college in 5 years, while the other child will enter college in 7 years. College costs are currently $10,000 per year and are expected to grow at a rate of 5 percent per year. All college costs are paid at the beginning of the year. You assume

    Future Value for Different Compounding Frequencies

    Find the amount to which $500 invested today will grow to in five years under each of the following conditions: A) 12 percent compounded annually B) 12 percent compounded semiannually C) 12 percent compounded quarterly D) 12 percent compounded monthly

    Finance Multiple Choice Questions: Capital Budgeting and Valuing

    1 The capital budgeting director of Sparrow Corporation is evaluating a project which costs $200,000, is expected to last for 10 years and produce net after-tax cash flows of $44,503 per year. If the firm's cost of capital is 14 percent, what is the project's IRR? (Hint: Is the firm's cost of capital relevant to an IRR calcul

    Khandker Motors Finances

    Khandker Motors finances 40% of its total capital with debt. The cost of debt is 11%. The firm is in the 37% tax bracket and earned an operating profit of $2.5 million dollars. If the Khandker's total capital amounts to $22 million and its book value per share is $20, what is the firm's earnings per share? a. $0.85

    Future Value: Time Value of Money

    1. Find the future value of the following investments, the interest rate is 8 percent per year: a. $100 is invested each year beginning one year from now and continuing through year 10, when the proceeds are withdrawn. b. $100 is invested each year starting today and continuing through year 10, when the proceeds are withdrawn.

    Time Value of Money, Annual ROR, Interest, etc.

    1. Compute the annual interest rate or rate of return that you will earn on the following investments: a. A US T-Bill that has a current price of $930 and will pay $1000 at maturity six months from now. b. A US T-Bill that has a current price of $950 and will pay $1000 at maturity six months from now. c. A US Treasury note se