A deposit of $495 earns 3% p.a. interest compounded monthly, how much money will be in the bank after 3 years? a. $541.55 b. $498.72 c. $549.00 d. $545.15
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A: Given deposit at the end of year = 500 pesos Time = 3 years Simple interest rate = 5 %
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A: In case of continuous compounding, effective interest rate is given by - r = ei - 1 where r =…
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A: Value of perpetuity = Payment / Long term rates = 2700/8.3% = 32530.12
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A: NOTE: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
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Q: 1. How long must a P40,000 note bearing 4% simple interest run to amount P41,350?
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- Question to Answer USING a FINANCIAL CALCULATOR SHOWING ALL WORKING. 1. Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount should she have deposited as a fixed deposit in the bank so as to accumulate the amount needed for her investment in stocks and bonds when needed?A principal of $20,000 is invested at 6% for 10 years. Determine its future value if the interest is compounded i. Semi-annually (10%) ii. Monthly (10%) iii. Continuously (10%) iv. Explain, using your own words, the different results in (i), (ii), (iii). Explain which one the consumer would prefer, and which one the bank would prefer.1. How long must a P40,000 note bearing 4% simple interest run to amount P41,350?
- what would be the present value of the bond if the bond has 3 years to maturity instead of one? what would be the present value of the bond 6 months from now if the bond has three years to maturity instead of one? same question just 3 ytm instead of 1Give typing answer with explanation and conclusion Gustav Co. is planning to issue new 30-year bonds. The current plan is to make the bonds non-callable, but this may be changed. If the bonds are made callable after 5 years at a 5% call premium, how would this affect their required rate of return? Question 6 options: There is no reason to expect a change in the required rate of return. The required rate of return would increase because the bond would then be?You deposit $3,000 in a bank at an annual interest rate of 7%. What will your bank balance be in 27 years?
- What is the nominal rate of interest compounded quarterly if the effective rate of interest on an investment is 4.6%? Question content area bottom Part 1 The nominal rate of interest is enter your response here% compounded quarterly. (Round the final answer to four decimal places as needed.You purchase a 3-year $1000 face value bond that has a coupon rate of 5% while the market interest rate is also 3%. What is the price, current yield and YTM? What is the market interest rate drops to 4% right after you purchase the bond? What is rises to 6%To travel to Japan via private plane, Jamaica made a P100,000 loan which is to be repaid over a term of 2 years at 7.2% interest convertible quarterly. The lender wants only payments of interest until the end of the term when the loan balance P 100,000 must be repaid in full. The borrower will make level quarter-end payments to a sinking fund earning 6% payable quarterly. a. How much is each quarterly sinking fund deposit?b. Calculate the net interest paid in the 6th payment. (Hint: Net interest = Total payment at time t - Principal paid at time t) c. Calculate the sinking fund balance immediately after the 6th payment is made.
- A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond’s price? b) What is the bond’s duration? c) Use the duration to calculate the effect on the bond’s price of a 0.2% decrease in its yield. d) Recalculate the bond’s price on the basis of a 10.8% per annum yield and verify that the result is in agreement with your answer to (c).ASAP. Use 2 decimal places for the final answer 5. If I loaned an amount of P50,000.00 with an interest rate of 11.98 % compounded monthly for 5 years. What is the real interest rate or the effective interest rate in percent?14. Which one of the following could never be considered to be cash equivalents?a. Common stock issued by a corporationb. Money market fundsc. Corporate commercial paperd. U.S. Treasury bills