A certain person invests $ 25,000 in a fund that pays 9% compound interest semi-annually. it will have 5 years at the bottom? A. $ 37,455. 19 B. $ 35,952.20 C. $ 38.824.24 D. $ 39,900.21
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- What is the present value of $1.21 received at the end of two years if the interest rate is 10% and compounding is annual? a- 1.31 b- 1.21 c- 1.10 d- 1.00 Which of the following is a leading economic indicator? a- average prime interest rate charged by banks b- stock prices, 500 common stocks c- commercial and industrial loans outstanding d- industrial productionA four-year bond has an 6 percent coupon rate and a face value of $1,000 . If the bond's current price is $817.75 , calculate the yield to maturity of the bond (assuming annual interest payments). A) 8 percent B) 10 percent C) 12 percent D) 6 percentYou expect a share of EconNews.Com to sell for $71 a year from now and to pay a $3 dividend per share in one year. What should you pay (rounded to the nearest dollar) for the stock today if you require an 6 percent return?
- Mr. Prudent has purchased a discount bond, that matures in 7 years with a payout of exactly $14,440. Assume that Mr. Prudent holds this bond for 3 years and then sells it in a secondary market. If the interest rate is 9.3%, then what price does he sell it for?Hector puts $150 into an account when the interest rate is 4 percent. Later he checks his balance and finds he has about $168.73. How long did Hector wait to check his balance? A. 3 years B. 3.5 years C. 4 years D. 4.5 years6. Alex invested a certain amount to a business and promised to pay him back with 1.8 times his original investment. They agreed to have it compounded monthly within 9 years. What is the nominal rate of interest r in percent?
- 3. If you deposit $1000 in an account that pays 5% interest, compounded annually, how much will you have at the end of 10 years? 50 years? 100 years? What if this is compounded Semi annually in 10 years? 50 years? 100 years?Suppose an ordinary bond has a coupon rate of 10 percent, the yield to maturity is quotedat 12 percent. This is semiannual coupon, the bond matures in ten years. Calculate thebond’s price. Calculate the effective annual yield on this bond.Consider a 25-year loan with an annual interest rate of 7 percent and monthly payments of $1,201.53. The discount points charged by the lender at origination are 3 percent and the cost of borrower title insurance and mortgage insurance are, respectively, 0.5 percent and 2.0 percent of the loan amount. Additional fees paid to other third parties (i.e., not the lender) will equal $4,000. What is the loan amount? What is the lender’s yield/IRR? What is the effective borrowing cost (EBC)? USE EXCEL
- When Andrew was 10 years old, his mother invested $50,000 to use for his college education seven years later. After seven years, how much money did Andrew have if the interest rate was 2 percent a year? A. $57,434.28 B. $50,357.00 C. $50,000.00 D. $43,528.01A 2-year maturity bond with face value of $1,000 makes annual coupon payments of $80 and is selling at face value. What will be the rate of return on the bond if its yield to maturity at the end of the year is: Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. 1. 6% - 2. 8% - 3. 10% -11.If you invest $1000 today, you expect to have $1460 at the end of 4 years. What rate of return do you expect to earn? 12. Brock Lee decided to sell his stock due to the recent market turbulence and instead put the entire amount of $100,000 into a savings account that promises to pay him annual compound interest of 4%. a. How much money will Mr. Lee accrue if he leaves it all in the bank for 1, 8, or 20 years? b.If Mr. Lee finds a different bank that promises to pay him 4% per year but compounds quarterly, rework part (a) using this new information.
