Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. save answer question 7 6 points (extra credit) for

Save Answer QUESTION 7 6 points (Extra Credit) For an ordinary simple annuity, the value...

80.2K

Verified Solution

Question

Finance

image

Save Answer QUESTION 7 6 points (Extra Credit) For an ordinary simple annuity, the value is $10750 at the beginning of the term. Regular payments of 500 are made quarterly for 6 years and interest is compounded quarterly. Find the interest rate j4. QUESTION 8 12 points Save Answer A company is considering acquiring equipment. This equipment would cost 500,000 and it would last 4 years. At the end of that 4 years, the salvage value (the price they would sell the used equipment at) is 100,000. The maintenance costs would be 30,000 each year (paid at the end of each year the company owns the equipment). The company can earn an interest rate of 7% compounded annually on its money. Find the net present value (NPV) of acquiring this equipment based on the information given. (Keep in mind that this value may be negative.) QUESTION 9 8 points Save Answer A debt of 9500 that accumulates interest at 10% interest compounded semiannually will be paid with semiannual payments of 800. If an additional payment is made one payment period after the last regular payment of 800 (and that payment is less than 800) to liquidate (pay off) the debt find the amount of that additional payment

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students