Laura opens a money market account that earns 3.0% per year by depositing $15,000. She then deposits $2,000 after the end of the first, second and third year. For the next three years, she increases the deposit by $300. If she keeps repeating the pattern of increasing the amount by $300 every three years, how much will she have in her account at the end of 12 years? A. $55,686

Q: Georgi Rostov deposits $4,000 in a savings account that pays 8% interest compounded monthly. Three…

A: Future value is the value of the current amount at some future date after adjusting it with the…

Q: Samantha made regular, equal deposits into savings accounts at the end of every month for three…

A: Annuity is a no. of finite payments which are equal size and made in equal time periods. Person…

Q: Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and in…

A: Given information : Year end Cash flow 0 $10,000 1 $10,000 2 $20,000 Discount rate…

Q: Roger just deposited $12,000 into his account at Market Place Bank. The bank will pay 3.2 percent…

A: in this we have to find out simple interest and compounding interest and than find out interest on…

Q: A 25-year-old engineer is opening an individual retirement account (IRA) at a bank. Her goal is to…

A: Given information is: A 25-year-old engineer is opening an individual retirement account (IRA) at a…

Q: Priscilla deposits $200 at the end of each month for seven years into savings account earning 5%…

A: Future Value is the value of current investments at a certain future date at the assumed…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $200/month into…

A: Future value is the amount accumulated on the deposit made along with interest earned on the…

Q: Anita put up a bank account with an initial deposit of 25, 000. After six months, she deposited…

A: Simple interest is applied directly on the principal amount. The formula for calculating simple…

Q: Peter has $10,000 that he can deposit in any three savings accounts for a 3- year period. Bank A…

A: Deposit = 10,000 Time Period of Deposits = 3 years   Bank A Annual Compounding Interest Rate = 4% N…

Q: Lauren plans to deposit $5000 into a bank account at the beginning of next month and $225/month into…

A: Calculation of Money in the Account in 7 Years:The money in the account in 7 years is…

Q: Jane just turns 30 years old and wants to start a savings plan, where she contributes $X every month…

A: Given:

Q: Rocio invests $170.00 a month for 9 years into an account earning 6% compounded monthly. After 9…

A: As per the guidelines, in the case of two or more individual questions, the answer for the first one…

Q: Steven just deposited $10,000 in a bank account that has a 12 percent nominal interest rate, and in…

A: Given, Deposit amount = $10,000 Nominal interest rate = 12% (Compounded monthly) Additional…

Q: Suppose a young couple deposits $700 at the end of each quarter in an account that earns 7.2%,…

A: Here, Deposit for the first three years is $700 per quarter Deposit after three years for the next…

Q: Sam has an opportunity to invest in an income account at 12 percent compounded continuously. The…

A: First, we need to convert the compounding frequency from continuous to monthly since the income is…

Q: Jeremy and Bill each have $57,043 to invest in a retirement account whose annual rate is 2.9% with…

A: As the compounding is monthly the effective rate = [1+(apr/12)]^12 - 1 = [1+(2.9%/12)]^12 - 1 =…

Q: Keith is saving in a bank in order to purchase a new house in six years. She anticipates that the…

A: Future value refers to the value that an amount would assume at a future time period after…

Q: Anita put up a bank account with an initial deposit Lou f P25, 000. After six months, she deposited…

A: Simple interest is the amount earned only on the investment principal.

Q: Marwan just deposited $13,000 into his account at Bank Muscat. The bank will pay 2.3 percent…

A: Deposit amount (P) = $ 13000 Annual interest rate (R) = 2.3% Period (N) = 15 Years

Q: In 20 years, Hannah would like to have $30,000 in an account that earns 4.2% compounded monthly. How…

A: In the given question we need to compute the Deposit today so that Hannah will have $30000 at the…

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Given information: Initial deposit amount is $900 Monthly deposit of $80 Interest rate is 3%…

Q: An engineering graduate starts a new job at $68,000 per year. Her investments are deposited at the…

A: future value of annuity formula: fva=pmt×1+rn-1r

Q: Adriana Grandioso has made beginning-of-year deposits into an investment account for the past 21…

A: FV is the future worth of cash flows that have occurred in the past or present.

Q: Edna deposits $2,000 in her bank account which is earning 2% in interest per year.  How much will…

A: Final Amount = Principal Amount ( 1 + Rate of Interest )time period

Q: A young executive deposits $400 at the end of each month for 4 years into an account that earns 6%…

A: Formulas:

Q: Beverly Hills started a paper route on January 1. Every three months, she deposits $800 in her bank…

A: The question is based on the concept of future value calculation . The first part  use concept of…

Q: Derek currently has $10,579.00 in an account that pays 6.00%. He will withdraw $5,474.00 every other…

A: Future value represents the future worth of existing cash flows. It is determined by compounding…

Q: Tika has $10 000 that he can deposit into a savings account for 5 years. ANZ pays compounds interest…

A: Time value of money- It is based on the concept that money earned today is worth more than similar…

Q: Sam's family has decided that they will start depositing $100 at the end of every month into a…

A: Monthly Deposit = 100 End of month deposits Time Period =  3 years or 36 months Interest Rate = 4.6%…

Q: Mary just deposited $33,000 in an account paying 10% interest. She plans to leave the money in this…

A: In  the given question we require to compute the amount mary will have in account at the end of…

Q: Jane deposits 10,000 USD and opens a deposit account at a bank. It will also deposit 6,000 USD one…

A: in this we have to use future value formula to calculate interest rate.

Q: Cristina invests $140.00 a quarter for 9 years into an account earning 9% compounded quarterly.…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: Suat opens a deposit account in a bank by depositing 10,000 TL. In addition, he will deposit 6,000…

A: Initial Deposit = 10,000 Deposit after one year = 6000 Deposit after two years = 4000 Value in…

Q: Andy invested a certain amount of money which he saves in account that earns 4% per year, compounded…

A: Present value of annuity payments of $3500 for 10 years at 4% is calculated as below:

Q: Jacqueline invested the profit of her business in an investment fund that was earning 2.50%…

A: Let the amount invested in the fund be $ X. Interest rate = 2.50 % compounded monthly The money is…

Q: Gina has planned to start her college education four years from now. To pay for her college…

A: An Annuity is a continuous flow of systematic timely cash flows made or received for a stipulated…

Q: Rose has an opportunity to invest in an income account at 12% compounded continuously. The amounts…

A: given information   interest rate = 12% compounded continously  time period = 8 years

Q: Jason makes six end-of-year deposits of $2,000 each in a savings account paying 5% compounded…

A: Annual deposits = $2,000 Rate = 5%   First calculate the future value of annuity at the and of 6…

Q: On January 1, Alan King decided to transfer an amount from his checking account into aninvestment…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: how much will she have in her account after 11 years

A: An Annuity is a series of payments of fixed amounts and at fixed intervals. These can be of two…

Q: if her dad deposits R3570,00  at the end of every six months for the next four years into a bank…

A: The Future Value of the annuity is the total value of all the payments which is occurred regularly…

Q: Suppose Jennifer deposits $500 in an account at the end of this year. $400 at the end of the next…

A: We need to use compound interest formula to solve this problem A =P(1+i)n Where A= final payment…

Q: Starting next year, Moussa Al Khatib will need $10,000 annually for 4 years to complete his…

A: Given information: Amount needed in next year $10,000 Number of years 4 Interest rate is 5%.

Q: Sarah opens an investment account with an initial deposit of $ 900. She then sets up monthly…

A: Future value is the value of the current assets or some amount that is invested today and amount…

Q: In December 2018, Eric puts $1600 into a bank account. He then deposits an additional $1000 each…

A: A study that proves that the 1value of money today is higher than the future value of money is term…

Q: Suppose your parents deposit $4,000 into an account at the end of each year for 11 years. The…

A: Information Provided: Return for the first 11 years = 1.40%Return for the next 16 years = 6.90%…

Q: Tyler invested the profit of her business in an investment fund that was earning 3.75% compounded…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…

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.