Gregory invested an amount of $12,000 in a mutual fund. After 3 years and 3 months the accumulated value of her investment was $13,334.07. What is the semi-annually compounded nominal interest rate of the investment? Round to tem de 0.00 %
Q: 1.) An eligible Pag-IBIG member may borrow up to 80% of his total accumulated value (TAV) subject to…
A: Since you have asked multiple question , we will solve first question for you. If you want any…
Q: What are the tax consequences to and Corporation on the following dates: January 1, ; January 1,…
A: Stock option is an option given by the company to its employees to purchase shares at less than…
Q: If an investor buys 1,000 shares at $50 and the initial margin is 60% and the maintenance margin is…
A: Initial margin is the margin amount the investor pays up at the initial stage of the share purchase.…
Q: A factory costs $970,600. You forecast that it will produce cash inflows of $839,085 in year 1,…
A: The question is related to Capital Budgeting. The Net Present Value is the difference between…
Q: Wanda, one of your clients, is a state sheriff’s deputy. Wanda was injured while on duty. Under her…
A: First let us determine which item is taxable under Revenue Ruling 83-77. Under this ruling, sick pay…
Q: THANKS !!!
A: As per the given information: Coupon rate - 6.50% Number of bonds purchased - 4 Selling price -…
Q: Use the NPV decision rule to evaluate these projects; which one(s) should be accepted or rejected?
A: Net Present Value: It shows the current worth of a project or investment and is used primarily in…
Q: If you need $40,000 for your son's education in 10 years, how much must you deposit at the beginning…
A: Amount required in 10 years is $40,000 Time period is 10 years Interest rate is 6% To Find: Amount…
Q: apley Dental Supply Company has the following data: Net income: $240 Sales: $10,000 Total assets:…
A: Return on Equity is the ratio that shows the profitability of the business by the use of owner's…
Q: A major repair on the suspension system of Jane's 3-year old car will cost her $3.000 every 3 years…
A: The equivalent annual cost is a capital budgeting tool used to measure the cost-effectiveness of the…
Q: Which of the following is correct regarding the APR?
A: APR: It refers to the annual rate charged on a loan or earned on an investment. APR is used by…
Q: As a financial consultant, you are given the following information about two companies, one levered…
A: Concept. 1.Value of firm = net income ÷ cost of capital(WACC) 2. Value of firm = value of debt +…
Q: Bonds from XYZ Inc. offer an after-tax YTM of 5%. They have 15 years left to mature and offer a…
A: Given, After tax ytm is 5% Term to maturity is 15 years Coupon rate is 6%
Q: Which of the following statements is most accurate? A stop-sell order is placed by a bullish…
A: A bearish (or negative) investor believes that prices will fall and that significant wealth will be…
Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…
A: In a payday loan , for $200 , we need to pay $230 which means we need to calculate rate applied in 2…
Q: A person borrows 10,000 at an interest rate of 8% per year and wishes to repay the loan over a…
A: As per the given information: The amount borrowed - 10,000 Interest rate - 8% per year Loan period -…
Q: Suppose you have been requested to evaluate a solar farm investment in Warwick. The investment cost…
A: The Net Present Value and the Internal Rate of Return: The Net Present Value: The net present value…
Q: Suppose you took out a 20 year mortgage for $280,000 with an APR of 2.772%, but you want to pay it…
A: A mortgage is a loan taken out to purchase or maintain a property. The loan is covered as the…
Q: . According to the basic DuPont equation, a firm's ROE is the product of what other two ratios? he…
A: Return on Equity: It is a measure of profitability used in ratio analysis. It is calculated by…
Q: An investor depc 1 year from the p 1 st withdrawal c er than the first p 5% less than the drawals,…
A: A statistic used in financial analysis to calculate the profitability of possible investments is the…
Q: As the director of capital budgeting for Colorado Corporation, you are evaluating two mutually…
A: Year Project A CashFlow Project B CashFlow 0 $ -1,55,000.00 $ -1,20,000.00 1…
Q: Massy Store makes a $10,500 investment at Republic Bank Ltd on January 1, 2019. At the end of…
A: Future Value refers to the compounded value of a single cash flow received today or multiple cash…
Q: A company is considering an investment with the Bollars. The general inflation rate (7) during this…
A: The cash flows are in constant dollars. Constant dollars means that the dollar (or the cash flow)…
Q: You've collected the following information from your favorite financial website. 52-Week Price Lo…
A: Dividend Growth Model: a strategy based on the belief that dividend growth will always be in…
Q: You are considering a stock investment in one of two firms (AllDebt, Inc., and AllEquity, Inc.),…
A: Return on Asset = This ratio indicates that how a company manage its asset to generate revenue for…
Q: he president of United Semiconductor Corporation made this statement in thecompany’s annual…
A: The president of United Semiconductor Corporation's statement in the company’s annual report that…
Q: The sum P350,000 will be needed at the end of 3 years. If money can be invested at 5% compounded…
A: We need to fist determine the semi annual end of period payment that will accumulate to the desired…
Q: Little Lemon Co. is identifying the value of its equity using the enterprise value approach as they…
A: Enterprise Value: The enterprise value of a company is the market value of a company's operations.…
Q: Suppose the asking price for a certain stock is $75 per share, the bid price is $74 per share, the…
A: A forward contract, often known as a forward, is a non-standard contract between two parties to buy…
Q: Part 1: In which account will he earn more interest? Select one of the choices below. O A. He will…
A: Information Provided: Cash prize = $1225 Interest rate = 6% simple interest Interest rate = 5.75%…
Q: Critically evaluate the sunk cost fallacy influencing investment decision-making
A: We have to critically examine the sunk cost fallacy and its impact on investment decision making.
Q: Madrid Company has provided the following data (ignore income taxes): 2000
A: Information Provided: Revenues = $77,500 Net Income = $33,900 Dividend declared and paid = $5700…
Q: $500 is deposited into an account at time 3 years and $750 is deposited into the same account at…
A: Amount Deposited $ 500.00 Time Period 3 Amount Deposited $ 750.00 Time Period 8…
Q: The present value of an annuity due of t payments of $1 per period is the same as Multiple…
A: There are two types of annuities are there: 1. Ordinary annuity 2. Annuity due.…
Q: Based on the free cash flow valuation model, Advanele Corp, calculates that the value of their…
A: Given, The value of operations is $874,000 Number of shares outstanding is 283,000
Q: Please explain why this statement is (False). For a given interest rate change, a 20-year bond's…
A: Bond Prices and Interest Rate Changes: Bond prices are sensitive to interest rate changes; i.e. they…
Q: QUESTION 4 John finances his daughter's college education by making deposits into a fund earning…
A: The PV of a payment series is the value of its cash flows today assuming that they are discounted at…
Q: What are the key elements to be included in the EL before execution?
A: Earned Leave (EL) Presently, civilian employees are permitted 30 days of earned leave each year.…
Q: If a certain stock sells for 33.812 dollars on the NYSE, how much will it sell for, in dollars, on…
A: Price of a stock on on exchange in known. We have to find the price of the same stock on another…
Q: The Lee family is buying a new 3,500-square-foot house in Muncie, Indiana, and will borrow $237,100…
A: The periodic payment is the equal amount of payment at regular intervals. The periodic payment…
Q: ently, the spot exchang annum in the U.S. and 5.84% per annum in the U.K. Assume that you can bor e…
A: Arbitrage risk less profit available due to the mispricing in the two market and it is short term…
Q: Common stock valuation) Abercrombie & Fitch's common stock pays a dividend of 2.75. It is…
A: Dividend growth Model - As per dividend growth Model current price per share can be calculated as…
Q: An important application of compound interest involves amortized loans. Some common types of…
A: Amortization of loan means the repayment process in which the principal amount and the interest on…
Q: Stock in Road Pave Zambia has a beta of .85. The market risk premium is 8 percent, and the Bank of…
A: Data given: Beta=0.85 Market risk premium =8 % Risk free rate = 5% (Zambia treasury bills are…
Q: If you deposit $150 in an account with an APR of 6% and continuous compounding, the balance after 2…
A: Information Provided: Principal = $150 APR = 6% Time = 2 years
Q: This is with excel. With a pen and paper, what is the equation to solve this problem. The visuals of…
A: Solution:- When an equal amount is saved each period at end of period, it is called ordinary…
Q: A man wishes to have 280,000.00 when he retires 15 years from now. If he can expect to receive 4%…
A: Annual Interest rate is 4% Type of annuity is begining of year Future Value is P 280,000 Time period…
Q: e expected return of Project Y is at least equal to the expected return of Project X, and the…
A: There should be optimal combination of risk and return. Return is important but the risk should be…
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: Adam purchases 1,200 shares of Beta Inc. at $22 per share [inclusive of commissions] and sells them…
A: A share has been purchased on leveraged and then sold. We have to find the return on the investment.
Please explain ASAP.
Without using Excel
Step by step
Solved in 3 steps
- A Series EE U.S. government savings bond accrues 3.5% interest each year. The bond matures in three years, at which time the principal and interest will be paid. The bank will pay the taxpayer at a 3.5% interest rate each year if he agrees to leave money on deposit for three years. What tax advantage does the Series EE bond offer that is not available with the bank deposit?If Daniella opens a mutual fund account with a deposit of $15,000 and it promises to pay an annual interest rate of r%, compounded on a monthly basis. (i) Derive a function B, which shows the balance on Daniella′s account the end of 6 years. (ii) Make a comparison of the rates of change in B with resect to the interest rate when r is 8% , 10% and 12%4. Kelly deposited $10,500 into a fund at the beginning of every quarter for 13 years. He then stopped making deposits into the fund and allowed the investment to grow for 4 more years. The fund was growing at 3.50% compounded monthly. a. What was the accumulated value of the fund at the end of year 13? b. What was the accumulated value of the fund at the end of year 17? c. What is the total amount of interest earned over the 17-year period? keep all the decimals for all the procedures, DO NOT ROUND
- Mr. Nailor invests $21,000 in a money market account at his local bank. He receives annual interest of 7% for 6 years. How much return will his investment earn during this time period? Use Appendix A. (Round "FV Factor" to 3 decimal places.) $10,521 $29,205 $31,521 $13,986Mary Stahley invested $2500 in a 48-month certificate of deposit (CD) that earned 9.5% annual simple interest. When the CD matured, she invested the full amount in a mutual fund that had an annual growth equivalent to 18% compounded annually. How much was the mutual fund worth after 11 years? (Round your answer to the nearest cent.)Mary Stahley invested $3500 in a 48-month certificate of deposit (CD) that earned 9.5% annual simple interest. How much did Mary receive when the CD matured? $ When the CD matured, she invested the full amount in a mutual fund that had an annual growth equivalent to 16% compounded annually. How much was Mary's mutual fund worth after 12 years? (Round your answer to the nearest cent.) $
- Jacqueline invested $51,400 in a mutual fund at 3.2% compounded monthly. After two years the interest-rate was changed to 7.8% compounded annually. After the rate change, the money is left in the account for an additional seven years. How much do was the value of the fund after the full 9 years.A3 Samuel made periodic deposits into a savings account at the end of every month for 2 years. The investments were earning 7.50% compounded quarterly and grew to $13,375.00 at the end of 2 years. a. Calculate the size of the month-end deposits. $542.77 $518.51 $446.40 $496.19 b. How long will it take for the $13,375.00 to accumulate to $39,295.00 if the interest rate remained the same and he continued making the same month-end deposits throughout the term? 4 years and 3 months 5 years and 3 months 3 years and 3 months 3 years and 5 monthsBen invested P5000 in a fund at the beginning of every month for five years. The fund earning an interest rate of 5% compounded monthly. What was the total amount invested? a. None of the above b. P266, 057.50 c. P99, 378.77 d. P22, 729.75
- Answer question 2 only. If need be you can used data from question a 1. Amy made semiannual deposits of $3,100 at the beginning of every every six months into a fund earning 6.8% compounded semiannually for nine years. No further deposits were made. a. How much will be in the account 15 years after the first deposit? _____________ b. How much in total was deposited? ______________ c. How much interest will Amy earn? _____________ 2. What is the principal invested at 4.75% compounded semiannually from which monthly withdrawals of $240 can be made at the beginning of each month for 15 years? _________________Tyler invested $20,300 in a mutual fund at 2.8% compounded semi-annually. After 3 years, the interest rate was changed to 8.2% compounded annually. After the rate change, the money is left in the account for an additional 8 years. How much was the value of the fund after the full 11 years?1. Amy made semiannual deposits of $3,100 at the beginning of every every six months into a fund earning 6.8% compounded semiannually for nine years. No further deposits were made. a. How much will be in the account 15 years after the first deposit? _____________ b. How much in total was deposited? ______________ c. How much interest will Amy earn? _____________ 2. What is the principal invested at 4.75% compounded semiannually from which monthly withdrawals of $240 can be made at the beginning of each month for 15 years? _________________
