Question

 Find the amount to which $500 will grow under each of the following conditions.

  1. 12% compounded annually for 5 years
  2. 12% compounded semiannually for 5 years
  3. 12% compounded quarterly for 5 years
  4. 12% compounded monthly for 5 years

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Finance

Time Value

Related Finance Q&A

Find answers to questions asked by students like you.

Q: Modern Artifacts can produce keepsakes that will be sold for $100 each. Nondepreciation fixed costs ...

A: a) Accounting Break even level of sales = (Fixed Costs + Depreciation) / Contribution per unit Depre...

Q: Please correct, I don't know how I'm wrong. I have one more chance so please double check

A: A written agreement through which a lender gets the right to take the property that is put as a secu...

Q: Suppose that you buy a car costing $14,000. You agree to make payments at the end of each monthly pe...

A: The payments made to purchase this car is a form of an annuity. Thus, the value of each payment can ...

Q: Suppose the returns on a small stock are normally distributed. The historical average return is 18 p...

A: a) Z score = (expected return - actual return) / Standard Deviation Z score = (18%-12%)/6% Z score =...

Q: Answer all 4 please

A: Here, Inflation rate is 3% Cost of New Building is $500,000 Down Payment required is 20% Monthly Inv...

Q: When the share price series breaks through the moving average line from below, what would a technica...

A: Moving Averages are averages with little more extension Moving Average is Popular Technical Indicato...

Q: A company currently pays a dividend of $3 per share (D0 = $3). It is estimated that the company's di...

A: Dividend discount model: As per this model, the price of the stock is equal to the present value of ...

Q: ABC Enterprises has just paid its annual dividend of $2.00 a share. It intends to maintain its tradi...

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...

Q: NEW PROJECT ANALYSIS You must evaluate the purchase of a proposed spectrometer for the R&D departmen...

A: Formulas:

Q: In connection with surfacing a new highway, a contractor has a choice of two sites on which to set u...

A: Expenses: These are the costs incurred by the company that will decrease the company’s profits. Thes...

Q: Fletcher’s Company’s current stock price is $36, and its last dividend was $2.40.  In view of Fletch...

A: Given: Current stock price = $36 last dividend = $2.4 Required return = 12%  

Q: The equipment has a delivered cost of $57,000. An additional $3,000 is required to install the new e...

A: Hello. Since your question has multiple parts, we will solve first question for you. If you want rem...

Q: How much more interest will be earned if $5000 is invested for 6 years at 7%, compounded continuousl...

A: a) 7% compounded continuously Future Value = Present value * e^rt Where r =rate of interest i.e. 7% ...

Q: Consider a bond paying an annual coupon of $70 with a face value of $1,000. Calculate the yield to m...

A: using financial calculator, N(time to maturity) =18 PV (Price of bond) = -1150 FMT (annual Coupon) =...

Q: Capital Budgeting   Assume you are evaluating two mutually exclusive projects, the cash flows of whi...

A: NPV expresses the net present worth of the project, if projects are mutually exclusive, it means tha...

Q: PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $140 mil...

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If y...

Q: Modern Artifacts can produce keepsakes that will be sold for $80 each. Nondepreciation fixed costs a...

A: Given information: Keepsakes sold for $80 each, Non-depreciation fixed costs are $1,700 Variable cos...

Q: 8a. Find the Net Asset Value (NAV) of a company with 350 million dollars in assets, 30 million in li...

A: Given: Assets = 350 millions Liabilities = 30 millions Shares = 8 million

Q: A firm’s stockholders expect an 12% rate of return, and there is $20M in common stock and retained e...

A: Cost of capital is the cost of financing the activities through outside means a company has to bear....

Q: ZAT had a FCFE of 4.5M last year and has 2.25M shares outstanding . ZAT required return on equity is...

A: Given, ZAT had a FCFE of 4.5M last year and has 2.25M shares outstanding ZAT  - Required Rate of Ret...

Q: Pharmos Incorporated is a Pharmaceutical Company which is considering investing in a new production ...

A: Sorry to use Excel but Trust me the Solution  is very clear Projects viability can be checked using ...

Q: An answering machine cost a dealer $220.00 less 31.5%, 7%. It is regularly priced at $212.00. The de...

A: Here, Cost of Answering Machine before the discount is $220 Discount Rate is 31.5% , 7% Regular Pric...

Q: McGill Golf has decided to sell a new line of golf clubs. The clubs will sell for $925 per set and h...

A: New line of gloves Selling Price= $925 Variable cost=$480 Number of units to be sold=75,000 sets pe...

Q: Purcell Export received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/...

A: First We need to calculate invoice Amount then calculate Amount paid to make remaining balance to 15...

Q: Q.Mr. Jasim receives a note for $60,000 which is due in 180 days with simple interest rate of 15%. T...

A: Amount of note= $60,000 Time to maturity= 180 days Discount rate= 12% Discount charges: =$60,000×121...

Q: Other relevant information about the company follows: The 20-year Treasury Bond rate is currently 4....

A: To determine the initial outlay, we need to calculate both the investment and the required working c...

Q: 1. Distinguish between the following pair of termsMoney Capital and Capital MarketsPrimary Markets a...

A: 1) Money market & Capital market both are considered to be financial markets. Differences betwee...

Q: An investor wishes to contruct a portfolio consisting of security 1 and security 2. the expected ret...

A: Portfolio Return = (R1*W1)+ (R2*W2) Portfolio Risk = square root of [(R1*W1)^2 + (R2*W2)^2 + 2*R1*R2...

Q: Q2.7: Morgan purchased a house for $400,000. He made a downpayment of 15% of the value of the house ...

A: a) Computation of size of the monthly payments is as follows:Amount of loan=Purchase price of loan×(...

Q: A company currently pays a dividend of $2 per share. It is estimated that the company's dividend wil...

A: Using Dividend discount model, Stock's current price is present value of future cashflows P2=D2*(1+g...

Q: businessman invested P1,000.00 and after 4 years, it becomes P1,608.44 when he investedat a certain ...

A: Future Value = Present value * (1+r)^n Where r = bimonthly rate n= no. of compounding period i.e. 4 ...

Q: An investment costs $23,958 and will generate cash flow of $6,000 annually for five years. The firm’...

A: Net present value: The net present value can be computed by subtracting the present value of all the...

Q: You are given the following information concerning a firm: (please show work) Assets required for op...

A: Given:

Q: Merrill Corp. has the following information available about a potential capital investment:      ...

A: Here, Initial Investment is $2,400,000 Annual Net Income is $170,000 Duration of the Project is 8 ye...

Q: Ezzell Corporation issued preferred stock with a stated dividend of 10% of par. Preferred stock of t...

A: Preferred stock is paid a dividend at a fixed rate before any dividend is paid to equity shareholder...

Q: On October 25, you plan to purchase a $1,200 computer by using one of your two credit cards. The Sil...

A: An interest is the charge of the cost of borrowing amount.

Q: A firm has the following investment alternatives (refer to image): Each investment costs $3,000; inv...

A: sss

Q: Q1.1: While buying a new car, Abigail made a down payment of $1,000 and agreed to make month-end pay...

A: The real interest that an investor earns on the investment and a borrower pays on loan after conside...

Q: Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. (Do not roun...

A: PI = Present value of future cashflows/ Initial Investment 

Q: Consider the multifactor model APT with three factors. Portfolio A has a beta of 0.8 on factor 1, a ...

A: A combination of different types of securities for the investment is term as the portfolio.

Q: What would you pay for an investment that pays you $34000 at the beginning of each year for the next...

A: Given: Rate of investment (r) = 11% = 0.11 Annuity (A) = 34000 Time period = 10 years  

Q: C. Calculate the present value of growth opportunities. (Negative amount should be indicated by a mi...

A: Given information : Return on equity  (ROE) = 15%Beta (β) =1.60Plowback ratio (b) =35Dividend payout...

Q: Let’s assume instead they have great credit and qualify for a loan with an APR of 4.025%, what size ...

A: Using financial calculator N (no. of compounding period) =30 years * 12 = 360 I/Y (rate of interest)...

Q: A CMO is being issued with 2 tranches:- Tranche A has $58 million in principal and a 3.3% coupon.- T...

A: Given, Tranche A has $58 million in principal and a 3.3% coupon Prepayment is assumed to be 5% CPR. ...