If a company places $200 in a deposit account that pays 7% interest compounded annually, how much will the deposit be at the end of 5 years?

Q: A firm borrowed $50,000 from a mortgage bank. The terms of the loan specify quarterly payments for a…

A: Effective annual rate: It can be defined as an equivalent interest rate that is already provided for…

Q: You invest $11,000 in an account that pays simple interest of 2% for 1 year. Calculate the amount of…

A: Simple interest is an easy method of calculating the interest amount. Simple interest is calculated…

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: Number of deposits = 10 Number of withdrawals = 5 First Withdrawal = 3000 First withdrawal at end of…

Q: Assume you deposit $5,700 at the end of each year into an account paying 11. interest. a. How much…

A: Yearly Deposit are of $5,700 Interest rate is 11% Time period is 19 years for Part(A) and 38 Years…

Q: A bank is offering 10% compounded quarterly. If you put $200 in an account, how much will you have…

A: Step 1 The worth of a series of periodic payments at a future date, assuming a specific rate of…

Q: Imagine the company that you work for borrows $8,000,000 at 8% interest, and the loan is to be paid…

A: The loan borrowed would be given, with the interest amount. The interest should be paid on the given…

Q: 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years,…

A: Solution:- Given, A Bank Deposited Value = $5,000 At the end of 3 years = $5,310 Interest for 3…

Q: Suppose that a company borrows 20,000 for 1 year at a stated rate of interest of 9 percent. What is…

A: Annual percentage rate (APR) if interest is paid to the lender annually = (1 + Stated rate / Number…

Q: Use Table 12-1 to solve.   Suppose a certain manufacturer deposits $7,000 at the beginning of each 3…

A: The question is based on the concept of Annuity.

Q: 1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a…

A: 1) Borrowed amount (B) = $250000 r = 9% n = 4 years Let the annual loan payments = A

Q: An account pays interest at 1.5% per month. If you deposit $5000 at the beginning of this year, how…

A: Future Value = Present Value * (1+rate)^n Where, Present value =$5000 rate = 1.5% or 0.015 n = no of…

Q: A company has agreed to pay $3.3 million in 5 years to settle a lawsuit. How much must it invest in…

A: Future value = $ 3,300,000 Period = 5 Years Annual interest rate = 9% Number of compounding per year…

Q: What is the amount of 15 equal annual deposits that can provide five annual withdrawals? A…

A: a) Working note:

Q: How much money must you deposit now at 6% interest compounded quarterly in order to be able to…

A: The given problem can be solved using PV function in excel. PV function computes current balance…

Q: D4 The company is planning to borrow now $85000 at 10% per year. The company expects to repay the…

A: The annual payment can be found using excel’s PMT function. It is the minimum payment that an…

Q: 1) A company deposits $5000 in a bank at the end of every year for 20 years. The company withdraws…

A: The series of payments is considered an annuity. The annual deposits will increase the value of the…

Q: Correct answer provided but I am having trouble obtaining it. Please explain each step in your…

A: The timeline of cashflows (deposits and withdrawals) can be understood by the table below.

Q: Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual…

A: Deposit = $1,000 Annual interest rate = 18% Compounding = monthly

Q: Commercial bank pays 12% interest and compounds quarterly. If 1000 are initially, how much shall it…

A: Computation:

Q: What will be the amount of each of the 4 annual payments that will have to be made to settle a debt…

A: Present Value of Annuity Due refers to a concept which determines the value of cash flows at present…

Q: How much interest is earned in 5 years on P50,000 deposited in a bank paying 3% interest per annum,…

A: Compound Interest = P(1+r/n)^nt - PWhere P = Principal = P50,000R = Rate on interest = 3%N = number…

Q: 3. A financial institution offers a nominal interest rate of 12% while compounding its accounts…

A: Effective Interest Rate: It refers to the annual rate of interest provided the effects of…

Q: 1. A sum of P1,000 is invested now and left for eight years, at which time the principal is…

A: Given, The initially invested amount = P 1,000 Rate of interest = 5% Time period of initial…

Q: First Simple Bank pays 6.4 percent simple interest on its investment accounts. If First Complex Bank…

A: Given information: Simple interest rate (r) : 6.4% Time horizon = 10 years

Q: Assume a firm makes a $2,500 deposir into its money market account. If this account is currently…

A: Future value Function in excel

Q: The plan was to leave $5,000 on deposit in a savings account for 15 years at 6.5% interest…

A: Principal Amount = $5,000 Interest Rate = 6.5% Time period = 15 years  Withdrawal in 5th year =…

Q: How much money should a company deposit into an account now so that they will have $50,000 in 6…

A: The present value of a cash flow is the current worth of a cash flow at a certain rate of interest…

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: First, we can compute the present worth at year 10 which can fulfill the requirement of 5 annual…

Q: A company deposits $2.000 In a bank account at the end of every year for 10 years. If the bank pays…

A: The future value of annuity is the accumulated value of regular deposits at a given interest rate.…

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: First, we should calculate the present value of 5 annual withdrawals and then we can compute the…

Q: Suppose an investor plans to make monthly deposits into an account that pays 9% interest, compounded…

A: We will first calculate the amount needed to pay on a monthly basis so we will take the period as…

Q: Gela Corporation borrows P250,000.00 at 15% percent annual interest. Principal and interest is due…

A: Borrowed amount = P 250,000 Annual interest rate (R)= 15% Compounding = Annual Number of compounding…

Q: 3. A man deposits P 50000 in a bank account at 6% compounded monthly for 5 years. If the inflation…

A: Data given: Present worth =P= P 50000 Rate of interest = r= 6% compounded monthly. No. of years =n=…

Q: First simple bank pays 6.4 percent simple interest on its investment accounts. If first complex bank…

A: The amount of investment is assumed as $100 First simple bank:

Q: Use Table 12-1 to solve. Suppose a certain manufacturer deposits $7,000 at the beginning of each 3…

A:

Q: If 10,000php is invested in account paying 6% compounded quarterly; A. How much will be in the…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: Compute the amount or maturity value of a note at the end of 3 years, if the principal or face value…

A: Compound interest is one of the form of interest used for calculation. Under it, interest is charged…

Q: An account pays 3.3% interest compounded quarterly. Marson will make a regular deposit at the end…

A: Interest - Interest is a regular payment that is made at a certain rate of interest for a fixed…

Q: ffering MACY’S has a six-year term deposit that will pay 7% per annum compounded quarterly.  If…

A: EAR stands for effective annual rate. EAR is greater than APR (annual percentage rate) when the…

Q: 1. a. In a savings account 3% annual interest rate compounded monthy, P 1,000 is deposited at the…

A: Note: It is a case where the number of questions asked is more than one and no specified question is…

Q: A customer opens a savings account that applies 2% compound interest annually. If the initial…

A: The money in account at end of 2 years can be calculated as the future value of account,

Q: A banks lends a customer OMR 6,000. At the end of 9 years he repays this amount plus interest. The…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What is the amount of ten equal annual deposits that can provide five annualwithdrawals, where the…

A: Present value of the amount that is expected to be receiving in some future date is the current…

Q: Assume Sheffield Corp. deposits $81000 with First National Bank in an account earning interest at 4%…

A: Option A is correct.

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.