Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. under the terms of a contract, the following payme

Under the terms of a contract, the following payments are guaranteed: $100? 000 payable immediately. $75?...

60.1K

Verified Solution

Question

Finance

Under the terms of a contract, the following payments areguaranteed: $100? 000 payable immediately. $75? 000 per year for 5years, payable in equal monthly instalments of $6250 at the end ofeach month. $50? 000 per year, payable annually at the end of the6th through the 10th years. If interest is at 5% compoundedannually, determine the discounted value at the beginning of the4th year of the remaining payments due under the contract.

Answer & Explanation Solved by verified expert
4.4 Ratings (1024 Votes)
Amount receivable at the beginning of 4th year Stream 1 for year 4 5 monthly 6250 Stream 2 from years 6 to 10 annually 50000 Value of stream 1 cashflows at the beginning of year 4 Monthly amount PMT 6250 Interest rate I 512 04167 pm number of monthly    See Answer
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

Transcribed Image Text

Under the terms of a contract, the following payments areguaranteed: $100? 000 payable immediately. $75? 000 per year for 5years, payable in equal monthly instalments of $6250 at the end ofeach month. $50? 000 per year, payable annually at the end of the6th through the 10th years. If interest is at 5% compoundedannually, determine the discounted value at the beginning of the4th year of the remaining payments due under the contract.

Other questions asked by students

Biology
1.2K views

Which of the following would have O 0 1 M NaCl MW 58 g mol

Physics
1.2K views

5 An insulated cylinder covered by a weighted frictionless piston of 500 kg and an...

Calculus
1.2K views

1 point Evaluate the function f x 10 x 7 x f 2 1 6...

Accounting
1.2K views

Right Now Electronic Center began October with 100 units of merchandise inventory that...

Accounting
1.2K views

Martinez Companys relevant range of production is 7,500 units to 12,500 units. When it produces...

Accounting
1.2K views

On August 1, 2017, Alpha Company retired a $10,000 bond at 110. On July 31,...

Accounting
1.2K views

Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which...

Accounting
1.2K views

Adelaide Limited is a wholesale business. It supplies products to four department stores operating in...

Accounting
1.2K views

Penny Worth Industrial has estimated that production for the next five quarters will be: ...

Finance
1.2K views

Staind, Inc., has 8 percent coupon bonds on the market that have 9 years left...

Accounting
1.2K views

Account Classifications For the current month, match each of the items to its proper classification,...

Accounting
1.2K views

Use the following information for #63-65: Moon Corporation issued $300,000 par value 10-year bonds at...