Consider the following cash flow diagram: $10 $10 $10 $10 If the interest rate is 10% per period, what is the value of V? Answer Choices: V a. 50.95 b. 51.05 c. 61.05 d. 44.95
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- 1. you are earning 7% annually and contributing the max allowable each year: if you want to have at least $1,000,000 in your IRA by age 60, what is the latest age you can start investing? b. Suppose you invest $3,000 and earn 7% interest per year on this investment. How many years will it take for your total investment to be worth $6,000 c. imagine the interest rate on your savings account was 0.5% per year and inflation was 2% per year. After one year, your ability to buy something with the money in this account with be: Question options: more than today less than today exactly the same impossible to sayStudent Emergency Financial Services, Inc.,which makes small loans to college students, offersto lend $550. The borrower is required to pay $42 atthe end of each week for 16 weeks. Find the interestrate per week. What is the nominal interest rate peryear? What is the effective interest rate per year?Mr. Karim is planning to pursue MBA studies. Initial inquiry shows that he will have topay RM 24,000 as a tuition fee, buy books for RM 1,000, and pay for transport RM 1,000.The MBA study program will extend over 18 months. Mr. Karim is working now with asalary of RM 3,000 per month. Being a full-time student, he will have to forego the incomefrom his present job for the period of study.
- 4. Compute the life earnings of an engineer with a Bachelor degree that starts working with a salary of $65,000 and expected average raises of 2.5% per year and plans to work for 35 years. The bank rate is 3.5% per year. Give your answer in terms of value at retirement.QUESTION 1 Mr.Rahim is planning to pursue MBA studies.initial inquiry shows that he will have to pay RM 25,000 as tuition fee,buy books for RM 1,000,and pay for transport RM 1,000. The MBA study programme will extend over 15 months. MR.Rahim is working now with a salary of RM 2,500 per month.Being a full time student ,he will have to forego the income from his present job for the period of study. work out:(a) Financial cost,and (b) the Economic cost of doing MBA(Hint: Identify implicit costs and explicit costs)1. A man deposited $4,000 in a bank at a rate of 12% per annum from January 10,1999 to November 18,1999. Find the exact simple interest. Group of answer choices $410.3014 210.3014 P310.3014 #510.3014 2. A man deposited $2,000 in a bank at a rate of 12% per annum from January 10,1999 to November 18,1999. Find the accumulated amount. Group of answer choices 2205 2105 2305 2255
- Mr. Rahim is planning to pursue MBA studies. Initial inquiry shows that he will have to pay RM 25,000 as tuition fee, buy books for RM 1,000, and pay for transport RM 1,000. The MBA study programme will extend over 15 months. Mr. Rahim is working now with a salary of RM 2,500 per month. Being a full time student, he will have to forego the income from his present job for the period of study. Work out: (a) Financial cost, and (b) the Economic Cost of doing MBA (Hint: Identify implicit costs and explicit costs)What are the annual payments necessary to pay a P1,000,000, 12-year loan if the loan rate is 8 %? * a. P80,333. b. P190,968 c. P80,000. d. P132,700.QUESTION 1 Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back at the end of year 8? QUESTION 2 Calculate the amount of interest on an investment of AED 103,971 at 8% simple interest for 5 years. QUESTION 3 If you deposit today $7,335 in an account for 6 years and at the end accumulate $10,885, how much compound interest rate (rate of return) you earned on this investment ? QUESTION 4 You will deposit 12,025 at 10% simple interest rate for 9 years, and then move the amount you would receive to an investment account at 12 % compound rate for another 3 years. How much money would you have at the end of the entire period ?
- Please do both question Question 1 Simple Interest of $234.3 is owed on a loan of $575 after four years and four months. What is the annual inerest rate? {Enter the value of the interest rate below and round your answer to one decimal point eg. X.X} Question 2 If you put $800 in a bank today that pays (a) 8% interest per year, how much money could be withdrawn 17 years from now? (Round your answer to the nearest dollar) $ (b) 8% simple interest per year, how much money could be withdrawn 17 years from now? (Round your answer to the nearest dollar) $n Padayappa has now retired after 40 years of employment. He just made an annual deposit to his investment portfolio and realized he has $2,500,000 (not counting home, cars, furniture, etc.). His money has been earning 7 percent per year, and inflation has been running 4 percent per year over the past 40 years. Part a Part b @ 2 Your answer is incorrect. What is the buying power of his $2,500,000 in terms of a base 40 years ago? $ Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±50. Attempts: 2 of 3 used Submit Answer Save for Later 61 3 + F3 W E S D F4 $ 4 R F с F5 % 5 T F6 6 Y F7 & 7 G H FB U * 8 J 8 F9 XCVBN M 09 ( 9 F10 K *- ) F11 0 *+ P F12 11 84°F Mostly c PrtSc { + 11 CSuppose that a 2-year zero-coupon bond with face value $1,000 currently sells at $840, while a 1-year zero-coupon bond with face value $1,000 currently sells at $920. You are considering the purchase of a 2-year coupon bond that pays coupon annually. The face value of this coupon bond is $1,000 and coupon rate is 12% per year. Required: a. What is the yield to maturity of the 2-year zero-coupon bonds? b. What is the current price of the 2-year coupon bond? c. What is the forward rate of the second year? d. If the expectation hypothesis is accepted, what are (1) the expected price of the coupon bond at the end of the first year and (2) the expected holding period return on the coupon bond over the first year? e. Will the expected rate of return be higher or lower if you accept the liquidity preference hypothesis?
