3. Chris invests 500 at the beginning of each year into Fund A. Fund A earns interest at a nom- inal interest rate of 12% compounded monthly. Fund A pays Chris interest monthly. Chris reinvests that interest in Fund B earning an annual effective rate of 7%. Calculate the total amount in Fund A and Fund B after 10 years. (A) 35,042 (В) 36, 126 (C) 37, 295 (D) 38, 782 (E) 39, 573

Q: iii) Someone borrows $ 45,000 at a rate of 20% per annum and after one year begins to pay annual…

A: Loan amount (PV) = $ 45,000 Annual interest rate (r) = 20% Number of annual payments (n) = 5

Q: 13.  happy Corp. established a fund where they pay $200 annually into the fund. The interest rate…

A: Year Year-1 Year-2 Year-3 Year-4 Year-5 Total Amount that $200 invested each year will become…

Q: Calculate the amount in the fund at the end of 3 years.

A: Time value of money means that the amount of money received in the present period will have more…

Q: How much money can be withdrawn at the end of 15 years if: a. $2,000 is deposited at the end of each…

A: The future value of the deposit is the value of the current deposits on a future date based on the…

Q: In order to meet some future liabilities, a company makes the following series of regular…

A: Given information : First three year payments made in every 4 months  13633 Second four year…

Q: Determine the monthly payment necessary to accumulate $30,000 in a fund paying 6% per year,…

A:

Q: Ali is making $1,000 monthly deposits into a fund that pays interest at a rate of 6% compounded…

A: Given: Monthly deposit = $1,000 Interest rate = 6% Years = 10

Q: At the conclusion of each year, each participant made a deposit of 1500.35 into a sinking fund. What…

A: This is used in the case of a future annuity – suppose an equal sum of money is invested in the bank…

Q: total amount in Fund A and Fund B after 10 years.

A: Funds refer to the pool of money which should be kept aside for some specific or special purpose.…

Q: wo years from now. My Orly needs P32,000 to liquidate a certain debt. If money is worth 5%…

A: Time Period = 2 years * 4 = 8 quarters Interest Rate = 5%/4 = 1.25% per quarter Future Value…

Q: A corporation creates a sinking fund in order to have $630,000 to replace some machinery in 8 years.…

A: Monthly Loan Payments: These are periodic payments made by the borrower for taking the loan from…

Q: Marigold Corp. deposits $12000 in a fund at the end of each year for 5 years. The fund pays interest…

A: The future value function or concept can be used to determine the future value of a present sum or…

Q: $150,000 is deposited in a fund that pays 5% annual compound interest for 2 years, 3% annual…

A: There are two methods of charging interest on loans. One is the simple interest method and other is…

Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which…

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4

Q: Alex receives level payments at the beginning of each year for 5 years. He deposits the payments…

A: Reinvestment is the practice of using dividends, interest, or any other form of the income…

Q: Sarah deposited $26,500 into a fund at the beginning of every quarter for 16 years. He then stopped…

A: Compound interest= p*(1+r%/n)^tn A.)  Around $358903 stacked up at the end of 16th year.

Q: You deposited $8,300 in a savings account. The account will earn 8 percent annual compound interest,…

A: Interest: It can be defined as the amount that is charged by the lender on the amount lent to the…

Q: 7. You are given: i. Fund X accumulates an interest rate of 8% compounded quarterly; ii. Fund Y…

A: Fund X interest rate per quarter = 8%/4 = 2% period = 5*4 = 20 Balance at the end of five years =…

Q: 7. Manolo deposited P 120 000 in a fund that pays 5% compounded annually for the first 3 years, 4 ½%…

A: Interest is a value which is received on a deposited amount for the period. It increases the value…

Q: Determine the amount that must be deposited every 3 months a fund paying 12% compounded quarterly in…

A: Computation of the amount that must be deposited in order to have P25000in 8 years having 12%…

Q: John made a deposit of 4400 into a fund ot the þeginning of each year for 16 years. At the end of 16…

A: FV of annuity = Payment * (1+i)n-1i

Q: Caleb invested $12,500 in a fund earning 7% compounded quarterly. She withdraws $650 from the fund…

A: Annuity refers to series of annual payment which is paid or received at start or ending of specific…

Q: 1. Amy made semiannual deposits of $3,100 at the beginning of every every six months into a fund…

A: Semi Annual Deposit = 3100 Beginning of period deposits Interest Rate = 6.8%/2 = 3.4% per semi…

Q: Calculate X

A: The time value of money is a concept that states that due to the interest-earning capacity of money,…

Q: Shawn made equal deposits at the beginning of every 3 months into an RRSP. At the end of 10 years,…

A: Compounding of interest means, interest is received on principal as well as the earned interest…

Q: 7. A fund is established by depositing P30,000 every beginning of 3 months for 2 years. If money is…

A: Quarterly deposit (P) = P 30,000 Interest rate = 12% Quarterly interest rate (r) = 12%/4 = 3% Period…

Q: A fund is to provide an annual scholarship at P4,000.00 for the first 5 years; P6,000.00 for the…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: 7. To accumulate Php 85 250, Joanna needs to place equal deposits at the end of every 3 months in a…

A: Given: Future Value of annuity payment (FVA) = Php 85250 Interest rate = 8% compounded quarterly…

Q: If you wish to accumulate $10,000 over a 5-year period by placing $200 a month, starting next month,…

A: Calculation of spreadsheet function of number of period: Answer: The number of periods function is…

Q: Faisal deposits $1,139 in a fund paying 4% annual compound interest; after 5 years the fund…

A: The future value of the account at the end of 11 years can be calculated with the help of future…

Q: Samuel David wants to make 5 equal annual withdrawals of $8,000 from a fund that will earn interest…

A:

Q: 3) Michael invests an amount $1,000 into a fund at the beginning of each year for 10 years. At the…

A: Future value of the annuity includes the amount being deposited and amount of compound interest…

Q: Candice Alvarez is investing $397,300 in a fund that earns 15% interest compounded annually. Click…

A: Yearly withdrawals = Total amount invested / Present value factor Note: Present value factor means…

Q: Dylan contributed $700 at the end of every 3 months, for 4 years, into a Registered Retirement…

A: Solution:- When an equal amount is deposited each period at end of period, it is called ordinary…

Q: Francis deposits P 100,000 into a fund today and P 200,000 fifteen years later. Interest is credited…

A: Deposit today (D0) = P 100000 Deposit after 15 years (D1) = P 200000 Discount rate for first 10…

Q: Brittany contributed $3,750 at the end of every 3 months, for 5 years, into a Register. Retirement…

A: Solution: An amount deposited at end of every period is known as ordinary annuity. The formula for…

Q: ma'am minda started to deposit P2,000 quarterly in a func that pays 5.5% compounded quarterly. How…

A: Quarterly Deposit = 2000 Interest rate = 5.5℅/4 = 1.375℅ per quarter N = 24 quarters

Q: Mark Harris borrowed some money from his friend and promised to repay him $1,250, $1,340, $1,490,…

A: Solution- Amount borrowed =The present value of the promised repayments at end of…

Q: ennifer started to deposit ₱1,000 monthly in a fund that pays 6% compounded quarterly. How much will…

A: p Principal Amount (1000*3) 1000 i Interest rate per annum 6% i Quarterly interest (6%/4) 1.50%…

Q: You deposit $1,000 in a fund at the end of each year for a 10- year period. The fund pays 5%…

A: An amortization schedule is a complete table of periodic loan payments, showing the amount of…

Q: 4) Ashley deposits $500 into an investment fund each January 1 starting in 2005 and continuing to…

A: Annual deposit from Jan 1 2005 = $ 500 Period from Jan1 2005 to Jan 2019 = 14 Years Number of annual…

Q: Aling Paring started to deposit P2,000 quarterly in a fund that pays 5.5% compounded quarterly.-…

A: The question gives the following information:

Q: Assume that Karen Williams desires to accumulate $1,000,000 in 15 years using her money market fund…

A: The present value method is used to evaluate the different levels of investment projects. With the…

Q: Vanessa deposited $16,000 into a fund at the beginning of every quarter for 11 yea She then stopped…

A: Future value of annuity include the amount being deposited and amount of compounding interest being…

Q: May deposits PhP 20,000 into a fund at the beginning of nd of 15 years, she makes an additional…

A: The present value of the future payments to be received will give the the future value of payments…

Q: Erik invested $575 at the end of every month in an investment fund that was earning interest at a…

A: a. For 6 Months Erik invested $575 every months  at rate 4.20% time 6 years therefore this is the…

Q: Jones Assoc. borrowed $40,000. The company plans to set up a sinking fund that will pay back the…

A: Given information: Amount borrowed : $40,000 time period : 8 years rate of interest : 12%…

Q: Ben invested P5000 in a fund at the beginning of every month for five years. The fund earning an…

A: Monthly investment (P) = P 5000 Period = 5 Years Number of monthly payments (N) = 5*12 = 60 Annual…

Q: Find the AV of these deposits

A: Time value of money (TVM) means that the amount received in the present period will have more…

Q: Kenny decided to make a P1,000 monthly deposit in a fund that pays 6% compounded quarterly. How much…

A: Monthly deposit (P) = P1000 Interest rate = 6% Monthly interest rate (r) = [{1+(0.06/4)}4]1/12-1…

Q: 240,000 will be deposited in a fund at the beginning of each six months for 5 yrs. Using 11% as the…

A: Here the concept of annuity will apply. This is the case of an annuity due as the payments are made…

Q: Red Company invested $20,000 in a fund that was earning interest at a rate of 3.00% compounded…

A: Answer a:- The future value of an investment is calculated using the following formula:- Future…

Q: 1. Mark started to deposit P18,000 semi-annually in a fund that pays 5% compounded semi-annually.…

A:

Q: You deposit $9500 per quartely for 1 years at i, = 8.31 %. This fund then provides for a perpetuity…

A: Perpetual payment is an arrangement to cash flows for an infinite time period, under the perpetuity…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.