3. A bank pays 4% compounded annually. At the end of 4 years, a 2% bonus is paid on the balance. If $1000 is invested for 4 years, what is the effective annual rate of interest earned by the investor?

Q: On January 1st, 2019 you put $1000 into an account growing at 2% APR compounded daily. Starting that…

A: 1) Future value = Present value * (1 + Interest rate)n where Interest rate = 2%/365 = 0.0000547945…

Q: FMS option

A: Options are called financial derivatives that provide buyers with the right, but not the obligation,…

Q: Suppose UZALO and MUVHANGO are involved in a Heritage Day project. They need to hire two acting…

A: Here, To Find: NPV =?

Q: Matterhorn Corporation stock currently sells for $80 per share. The market requires a return of 9.8…

A: The current price of stock is $80 per share Required rate of return is 9.8% Growth rate is 2.9%

Q: You are finalizing a bank loan for $180,000 for your small business and the closing fees payable to…

A: Loan A fund that is borrowed from a financial institution or from an individual is known as a loan.…

Q: On January 1, Year 1, Marge made a $60,000 interest-free loan to her son, Steve, who used the money…

A: Federal funds market actually consist of the domestic unsecured borrowings in United States Dollars…

Q: 1. Write the Ratio/ Equation to be used, IF REQUIRED 2. Substitute the given 3. Solution (Solve for…

A: Dividend is the distribution of the company’s earnings to the shareholders of the company. A…

Q: Pursell Bank offers you a five-year loan for $50,000 at an annual interest rate of 8.75 percent.…

A: In the above question we have to calculate annual loan payments of Pursell Bank loan. To calculate…

Q: On 2022-04-22, Jiefei pays $17,908.48 for a Tbill with a face value of $19,000.00 and a maturity of…

A: Purchase Date 22-04-2022 Maturity Date 21-02-2023 Face Value  $   19,000.00 Tbill Current…

Q: Your bank pays 2.3% interest per year. You put $1.100 in the bank today and $500 more in the bank in…

A: Year 0 Deposit = $1,100 Year 1 Deposit = $500 Interest rate = 0.023 Amount in the bank in 2 years =…

Q: Your company is AA-rated by a credit-rating agency, and must borrow money according to the table 1…

A: Projects should be accepted when expected return is greater than interest on money borrowed    In…

Q: Voyager, Inc. has 1000 shares issued with 800 shares outstanding.  If Voyager Inc. pays a dividend…

A: Number of shares outstanding 800 shares Dividend per share $4

Q: Local Co. has sales of $10.4 million and cost of sales of $5.7 million. Its selling, general and…

A: It is given that:sales = $ 10.4mil Cost of sales - $ 5.7 mil Administrative expenses = $530,000 RnD…

Q: 5. You deposit 10000 to an account that earn 7% compounded annually for five years and force of…

A: Given: Deposit = 10,000 Interest rate = 7% Year =10

Q: You plan to deposit $700 in a bank account now and $100 at the end of the year. If the account earns…

A: First we have tor calculate the future value of $700 deposit today and then we will add the second…

Q: Michael bought a laptop and paid P12,000 down payment plus P10,000 at the end of each month for a…

A:

Q: Justin and Candice are saving for their daughter Alyssa's college education. Alyssa just turned 10…

A: The PV analysis is conducted to find the profitability of a project. It allows an investor to make…

Q: Over the next year, there is a 85% chance of the market being in state 1, otherwise it is in state…

A: Expected return on a portfolio is the weighted average of the returns in each asset.  Expected…

Q: From the data below for the Dow Jones Industrial Average, calculate the three-day simple moving…

A: Date Adj Close 3/25/2019 25,516.99 3/26/2019 25,657.89 3/27/2019 25,625.75 3/28/2019…

Q: You have invested in two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com has volatility…

A: Portfolio volatility is a measure of portfolio risk. The portfolio volatility shows the tendency of…

Q: A bank features a savings account that has an annual percentage rate of r=3.1r=3.1% with interest…

A: Present value of deposit grow with amount of interest and period of deposit and grow to much larger…

Q: General Electric has just issued a callable​ (at par)​ 10-year, 5.7% coupon bond with annual coupon…

A: Annual Coupon rate is 5.7% Time period is 10 years Curret Price of Bond is $102.43 Callable at par…

Q: A security that increases in price from $50 to $100 during year 1 and drops back to $50 during year…

A: To Find: HPR HPY Arithmaetic return Geometric return

Q: 4 years ago, you purchased a corporate bond for R975.30. At the time, the bond had a YTM of 9.25%…

A: Given: Particulars Amount Present value (PV) $975.30 Years completed 4 Yield to…

Q: The bond will earn an annual rate of %. (Round to two decimal places.)

A: (I would assume you have a Financial Calculator)   The Functions in the Time Value Mode of the…

Q: Phoenix Products Inc. requires a new machine to produce a part for a solar air conditioner. Two…

A: Rate of return can be calculated using internal rate of return(IRR).   As per IRR:         Lower…

Q: Calculate expected demand for the coming week if nothing else changes.

A: The demand is expected to grow as a conference nearby will increase the number of coffees sold.…

Q: In January 2019, United Airlines (UAL) had a market capitalization of $23.25 billion, debt of $13.16…

A: It is given that: UAL: Market cap - $ 23.25 bil Debt - $ 13.16 bil Cash - $ 4.18 bil Revenue- $41.49…

Q: Question 1 a.“The goal of a firm is to maximize shareholder’s wealth” Evaluate and comment on this…

A:

Q: JILLIAN OWNS 60% OF THE STOCK IN A PRIVATE CATERING CORPORATION. THERE ARE 1,200 SHARES IN THE…

A: A share is one unit of a corporation's ownership stake. The company issues share to raise capital or…

Q: Ashburn Corporation issued 10-year bonds two years ago at a coupon rate of 7.2 percent. The bonds…

A: Given, The Coupon rate is 7.2% Sale price of bond is 102% of par value

Q: Three government bonds are in issue, bond A, bond B and bond C. each bond has a par value of K100…

A: We have all the information about three bonds. We have to calculate the spot rates for year 1, 2 and…

Q: PA [-(1+3) a small cabin is $30,000. The bank requires a 5% down payment. The buyer is offered two…

A:

Q: How can you know whether a project will be profitable? What purpose does TCO serve?

A: The management evaluates the project before accepting the project, the management has to decide…

Q: Don Magellan borrowed today from Ginoong Lapulapu P300,000.00 and agreed to repay the  loan with 4…

A: Here, To Find: Equal monthly payments =?

Q: Suppose a​ ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for…

A: A.) We have to calculate the Rate of return with semi annual compounding. So we will use RATE excel…

Q: You are allocating your wealth between two shares, Tinkle.com and Circumbendibus Wheels. Tinkle.com…

A: To calculate the weight of any asset in a minimum variance portfolio we will use the below formula…

Q: Mr. Padilla agrees to pay P1,300.00 at the end of each month for 20 years, in purchasing a house.…

A: The PV of an asset refers to the value of all its future cash flows discounted at an assumed rate of…

Q: For the next 7 years, you expect to receive equal payments at the beginning of each year. Today, you…

A:

Q: The current​ zero-coupon yield curve for​ risk-free bonds is as​ follows:   Maturity ​(years) 1 2 3…

A: YTM means total rate of return that have been earned by the bond when all interest payments has been…

Q: A debt of 'x' pesos, with an interest rate of 7% compounded annually will be retired at the end of…

A: Interest rate for Debt is 7% compounded annually Time period of debt is 10 years Interest rate on…

Q: Find the final amount of money in an account if $1,400 is deposited at 2% interest compounded weekly…

A: Future Value  =Present Value + [ Present Value * ( 1 + Interest rate ) Time period ] Given,…

Q: Using this table as needed, calculate the required information for the mortgage. (Round dollars to…

A: Given, Amount financed $165,300 Rate is 5.25%

Q: The common stock of Company XLT and its derivative securities currently trade in the market at the…

A: (a) Constructing  a Synthetic Treasury Bill Position: In constructing the Synthetic Treasury bill…

Q: What are some of the business applications of the time value of money, and what are some of the…

A: Business applications of the time value of money Time value of money has applications in different…

Q: important to have an FMS option

A: FMS Stock Options refers to all outstanding options to buy stocks of FMS Common Stock bestowed under…

Q: ▪mputing Annuity Amounts to a Debt Re nd n January 1, Chang Inc. establishes a bor nd (a bond…

A: Future of the annuity is required to calculate the sinking fund amount and sinking fund is the…

Q: Question 7 The Federal Funds Rate is O the rate charged on U.S. Treasury bonds by the Federal…

A: The Federal Funds Rate: The rate at which the banks lend funds to each other overnight from their…

Q: TWO PARTNERS ARE STARTING A WEDDING PLANNING BUSINESS. THE TOTAL INVESTMENT IS $45,000. THEIR…

A: Total Investment is $45000 Ratio of Contribution is 4:5 To Find: Contribution of each investor

Q: If the portfolio is 500,000, with the significance level of 1%, what would be the absolute value of…

A: The Value at Risk: The Value at Risk (VaR) is a popular tool in the risk management of portfolios.…