Q: Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest…
A: Semiannual interest rate (r) = 0.06 (i.e. 0.12 / 2) Number of deposits (n) = 20 Semiannual period…
Q: What is the effective rate for Investment A? Answer as a percent, rounded to two decimal places.…
A: Information Provided: Investment A rate = 7.35% compounded semi-annually Investment B rate = 7.4%…
Q: Bloom Company Limited expects its EBIT to be $80,000 every year forever. The firm can borrow at 9…
A: Here, To Find: Part A. Value of unlevered firm =? Part B. Value of levered firm =? Part C. Value of…
Q: Question 17 What is the amount of an annuity that is payable for 2 years at 6% compounded monthly if…
A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…
Q: just to make sure: in order to calculate the expected return of stock in our case the Rm is 7% or…
A: Formula for E(R) = Risk-free rate(Rf) + Beta of the stock x (Market Return(Rm) - Risk free rate(Rf))
Q: Based on the empirical evidence pertaining to efficient markets, which of the following is most…
A: A Market is Considerd as efficient if: Security prices would adjust rapidly to the arrival of new…
Q: Suppose i have beautiful coffee tables i am building and the materials cost for each table is…
A: Cost of goods sold refers to the direct costs of producing a product. For example cost of raw…
Q: Find out the 1- standard deviation 2- variance weight Investment*expected return stock weight…
A: Standard deviation The standard deviation of an investment refers to the level of risk associated…
Q: In 2021, a standard 30-year fixed mortgage in the US could be had for somewhere around 3%. Following…
A: Formula's Used:
Q: 1) Based on the data in the table below in which the average yield, the standard deviation of…
A: concept. 1. systematic risk. Systematic risk is also called the undiversifiable risk, market risk,…
Q: The year-end 2015 balance sheet of XYZ Inc. listed common stock and other paid-in capital at…
A: Data given: Retained Earnings (2015) = $3,500,000 Net income (2016) = $700,000 Retained Earnings…
Q: On the birth of a child, a father wished to invest in a trust fund which gives 12% compounded…
A: The investment return rate that is used to calculate present value is called the discount rate. In…
Q: Find the monthly amortization for a loan of Mr. Frederick Dizon amounting to P750,000 to aid in four…
A: This is a case in which a loan is taken and then the payments are spread over a number of months.…
Q: Treasury securities that mature in 6 years currently have an interest rate of 8.5%. Inflation is…
A: Determinants of interest rate of Treasury securities are real risk free rate, inflation premium and…
Q: You borrow $6,000 at a 10 percent annual rate to be repaid in 3 equal payments at the end of each of…
A: The annual installment is calculated with the help of following formula Annual Installment = Amount…
Q: Using margin, a trader bought 100 shares of a $150 stock. The initial margin was 35 percent and the…
A: Number shares = 100 Stock price = $150 Initial margin = 35% Price after drop = $125
Q: the periodic deposit. b. How much of the financial goal comes from deposits and how much com…
A: Future value of annuity includes the amount being deposited and also the amount of interest…
Q: What are the expected return and standard deviation of your client's portfolio?
A: Given, expected rate of return of 19% standard deviation of 30% The T-bill rate is 4%.
Q: M2
A: The growth in the usage of crypto currency has promoted the government to take note of it and…
Q: The stated interest rate on your account is 12.5%, interest paid monthly. Your effective rate of…
A: Nominal interest rate is 12.5% paid monthly Compounding frequency "n" is 12 To Find: Effective…
Q: Mrs Ireen Ndhlovu kaleji has US$ 2,000 which she is planning to exchange with Zambian Kwacha. She…
A: Cross exchange rate When there is no direct quotes available, cross exchange rates are used to…
Q: McCabe Corporation is expected to pay the following dividends over the next four years: $15, $12,…
A: The current share price can be determined using the dividend growth model which considers the…
Q: Ms. Nelson will receive $12,000 a year for the next 20 years from her retirement fund. If a 6…
A: Annual payment = $12,000 Period (N) = 20 Years Interest rate = 6% Current value of present value = ?…
Q: Question 3 Mr. Lutombi, aged 55 years old, is the current Roads Authority (RA) CEO. He is…
A: The probability of recession is calculated by subtracting the sum of probabilities of boom and…
Q: 15-year annuity of thirty $10,000 semiannual payments will begin 11 years from now, with the first…
A: The annuity is series of the uniform periodic payments at regular intervals and the present value of…
Q: Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers…
A: The compound interest adds the interest earned in a period to the principal because of which more…
Q: An investor estimates the expected returns of the following three shares as follows (for three…
A:
Q: If Php80,000 is invested at the rate of 6% compounded annually, when will it earn interest of…
A: what is compound interest? compound interest is the interest that you earn over the principal and…
Q: ces Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at…
A: The bond is a debt instrument where a firm takes out a loan (bond price) in return for repayments of…
Q: You are trying to plan your investments for the next year. You have decided that the market will…
A: Expected Return , Standard deviation (volatility) and covariance is calculated using the below…
Q: Suppose that 10-month interest rates in Canada and Europe are 3.2% and 1.3%, respectively. In…
A: We have to decide on the arbitrage action for the euro. Spot rate and interest rates are available.…
Q: Can replacement chain analysis be used if project cash flows are different each time the project is…
A: Several statements have been given regarding the suitability of replacement chain analysis, if…
Q: What simple interest rate should Php124,565.87 invested so that it becomes Php155,000 in 3 years? 3…
A: Simple Interest rate Maturity Value = Principal amount + Interest on Principal amount Maturity…
Q: ppose that Federal Reserve actions have caused an increase in the risk-free rate, rRF. Meanwhile,…
A: The required rate of return as per capital asset pricing model = (Risk free rate+(beta*market risk…
Q: Tater and Pepper Corp. reported free cash flows for 2021 of $52.1 million and investment in…
A: Free cash flow = $52.1 million Investment in operating capital = $35.1 million Depreciation expenses…
Q: 3. ent Value: P = FV- or P = F(1+i) -n (1+r)" a) Find the present value of P8,000 due in four years…
A: Present Value refers to a concept that states the discounted value or say value at today's time of…
Q: Question 15 How many periods will it take for Php23,000 to accumulate to Php25,000 at 12% compounded…
A: Solution:- When some amount is invested, it earns interest on it. The amount initially invested is…
Q: As an innovative way to pay for various software packages, a new high-tech service company has…
A: The real interest rate is the rate of return that is provided by an investment after the effect of…
Q: How much can I borrow for the purchase of my first home if I can afford to make monthly payments of…
A: To Find: Present Value
Q: What was the firm's net income if the firm paid income taxes of $2,000 and the average tax rate was…
A: Tax rate – 25% Tax paid – 2000 Net income - ? Tax = income before tax* tax rate
Q: Calculate the systematic risk and required return of each stock. Calculate the performance of the…
A: Systematic risk is the beta of the stock. This can be calculated with the formula below: βStock =…
Q: period. structures, due to passage of time. one where equal payments are made at the end of each…
A: An annuity is a set of equal monetary payments made at equidistant periods in time, such as monthly,…
Q: Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the…
A: The annuity payments that are made at the beginning of the year are called annuity due and the ones…
Q: Question 8 How much is the proceeds if Marl Php22,735 at 2.85% for 2 years and 5 m Php21,169.13
A: Simple interest is simple and there is no compounding of that means there is no interest on interest…
Q: the industry has said will put it out of business. Payday lenders typically charge $20 per $100 for…
A: In daily life some time we need cash money very urgently and but we don't have that so due to which…
Q: Complete the following table for the simple discount notes. Use the ordinary interest method. Note:…
A: Amount due at maturity = $4,400 Discount rate = 0.0625 or 6.25% Time = 170 days Bank discount = ?…
Q: 2. The purchased price of the equipment is P12,000 and its estimated maintenance costs are P500 for…
A: Present value of future amount With capitalized cost (r), period (n) and future value (FV), the…
Q: Town station is saving money to build a new loading platform. Three years ago they set aside 23,000…
A: Future Value = Present Value * ( 1 + Interest rate) n Interest rate = [ (Future Value/Present…
Q: Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Company A 30% 7% 18% -22% -14% 10% 26% -10%…
A: We have to design two portfolios and then find their average return, standard deviation of return…
Q: Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $5 per…
A: Just paid dividend = $5 Year 1 Dividend = $9 (i.e. $5 + $4) Year 2 Dividend = $13 (i.e. $9 + $4)…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- Solve the following exercise by using the present value formula. Do not round intermediate calculations. Round your answers to the nearest cent. Compound Amount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest $13,000 7 years 8.5 semiannually $ $For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): years Interest Rate Future Value 14 8 16,151 5 14 58,557 30 15 893,073 35 8 557,164Compute the future value of $2,500 continuously compounded for 6 years at an APR of 11 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $
- Complete the following using compound future value. Do not round intermediate calculations. Round final answers to the nearest cent. Time principal rate compounded Amount Interest 4 years $15,700 6% quarterly ? ? *Amount and interest need to be solved.What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,100 in 14 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)Complete the following using compound future value. (Use the Table provided.) Note: Do not round intermediate calculations. Round your final answers to the nearest cent. Time: 3 years Principal: $17,100 Rate: 6% Compounded: Quarterly Amount: Interest: Period 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 1 1.0050 1.0100 1.0150 1.0200 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500 1.0550 1.0600 1.0650 1.0700 1.0750 1.0800 1.0850 1.0900 1.0950 1.1000 2 1.0100 1.0201 1.0302 1.0404 1.0506 1.0609 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 1.1556 1.1664 1.1772 1.1881 1.1990 1.2100 3 1.0151 1.0303 1.0457 1.0612 1.0769 1.0927 1.1087 1.1249 1.1412 1.1576 1.1742 1.1910 1.2079 1.2250 1.2423 1.25.97 1.2773 1.2950 1.3129 1.3310 4 1.0202 1.0406 1.0614 1.0824 1.1038 1.1255 1.1475 1.1699 1.1925 1.2155 1.2388 1.2625 1.2865 1.3108 1.3355 1.3605 1.3859 1.4116 1.4377 1.4641 5 1.0253 1.0510 1.0773 1.1041 1.1314 1.1593 1.1877…
- Solve by using the present value formula. Round your answers (in $) to the nearest cent. CompoundAmount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest 18,000 8 years 4.5 monthlyUse the present value table to complete: (Round the "PV factor" to 4 decimal places and final answer to the nearest cent.) Future Amount Desired Length of Time Rate Compounded Table Period Rate Used P.V. Factor P.V. Amount $11,000 6 yrs 12% quarterly %For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1) (Use appropriate factor (s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Future Value I n ____________ $ 40,000 10% 5 $ 36,289 $ 65,000 _____ 10 $ 15,884 $ 40,000 8% ____ $ 46,651 $ 100,000 ______ 8 $ 15,376 ___________ 7% 20
- What is the future value of $3,500 in 19 years at an APR of 8.8 percent compounded semiannually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)For each of the following, compute the future value: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Present Value Years Interest Rate Future Value $2,200 12 12 % 8,652 6 10 % 75,355 13 11 % 182,796 7 7 %Complete the following using present value. (Do not round intermediate calculations. Round the "PV factor" to 4 decimal places and final answer to the nearest cent.) Amount desired at end of period: $7,400 Lenght of time: 6 years Rate: 4% Compounded: Semiannually Period used: _____________ ? Rate used:_______________% ? PV factor used: __________________ ? PV of amount desired at the end of period ______________ ?