Lennon invests $8500 in two different accounts. The first account paid 13%, the second account paid 14% in interest. At the end of the first year he had earned $1165 in interest. How much was in each account? s $ at 13% at 14%
Q: Check out this great opportunity! ABC, a loan consolidation company, offers you a line of credit…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: An asset with 5-year MACRS life will be purchased for $12,000. It will produce net annual benefits…
A: Rate of return refers to the income from the investment annually expressed in a form of a…
Q: Fool Proof Software is considering a new project whose data are shown below. The equipment that…
A: Given: Cost of equipment = $42,188 Tax rate = 25%
Q: What is not an advantage of a Treasury (T) Note? Select one: a. Extremely liquid security.…
A: A Treasury note refers to the marketable debt security of the U.S. government issued with a fixed…
Q: An investment promises two payments of $570, on dates three and six months from today. If the…
A: Present value is the value right now of some amount of money in the future. Investment amount will…
Q: It is conceivable for a stock investor to gain as much as 50% in one year or lose 50% in one year.…
A: Case study: Example: In 2017, five stocks in S&P500 have risen by more than 50% in one year…
Q: Which of the following earns a fixed rate of return? Whole life insurance. Term-life insurance.…
A: There are two main types of life insurance:- Term life insurance and whole life insurance. Term life…
Q: Suppose the marginal benefit of writing a contract is $50, independent of its length. Find the…
A: Data given: MB(L)=Marginal Benefit =$50 At optimal, Marginal Benefit = Marginal Cost
Q: The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and…
A: Return on asset = Return on equity/(1+Debt equity ratio) Return on equity = Net Income/Total equity…
Q: Under a 75% LTV term loan structure, when is the balance of funds released by the lender to the…
A: Borrowing to purchase an asset: An asset can be purchased by taking a loan from a financial…
Q: . Mubita is contemplating on investing in Stocks A and B with the following probability…
A: The CAPM model that is capital asset pricing model gives the required rate on the stock based on the…
Q: Assume that you are a consultant to Broske Inc., and you have been provided with the following data:…
A: Next dividend (D1) = $0.80 Current price (P0) = $32.50 Growth rate (G) = 8.00% Formula Cost of…
Q: Jesse borrowed from a bank at 5.92% compounded semi-annually; he settled the loan by repaying $3,055…
A: Interest rate is 5.92% compounded semi-annually Amount repaid is $3,055 every 6 month Time period is…
Q: A new diamond deposit has been found in northern Alberta. Your researchers have determined that it…
A: We will have to determine the NPV of all cash flows associated with this diamond deposit. If NPV of…
Q: What is a real estate investment trust? Explain the difference between public and private REITs. How…
A: The following question are answered below : What is a real estate investment trust? Explain the…
Q: Assume that a client has 75000 to invest and the maximum risk rating for this investor is 350.…
A: Annual return When investment is made in two alternatives with different rate of return, then the…
Q: compute the discounted payback statistic for Project X and recommend whether the firm should accept…
A: Discounted payback period shows that how long it will take to recoup an investment using present…
Q: A zero coupon bond is selling for $575.04. The bond matures in 13 years and has a afce value of…
A: A zero coupon bond is usually offered at a discount price. As the name suggests, it does not pay any…
Q: How long will it take a $8,920 loan to accumulate interest of $480 if money earns 3.05% compounded…
A: We are required to calculate the number of periods that will take $8920 to become $ 9,400. 9400 =…
Q: Your rich aunt has promised to give your $5200 in 4 years. How much should you be willing to…
A: The concept of the time value of money states that the same amount of money has more value today…
Q: A barbell strategy outperforms a bullet strategy of the same duration in the face of a flattening…
A: Barbell strategy and bullet strategy are two important concepts in the domain of fixed income…
Q: Today, Joe paid $12,000 for a bond which has $10,000 face value. The bond coupon rate is 10% per…
A: The yield to maturity is rate of return realized on the bond when held till maturity of bond period…
Q: how much must you repay at the end of the 6 months?
A: Information Provided: Amount borrowed = $500 Interest rate = 6% Time = 6 months or 0.5 year…
Q: Porter Company is analyzing two potential investments Project X $ 75,900 Initial investment Net cash…
A: Payback period = Initial investment/Annual cash inflows
Q: What does the market value of debt and equity refer to? O A. The values at which debt and equity are…
A: Intrinsic value of an asset is the price which is determined based on the actual financial…
Q: onthly. After this period, the accumulated money was left in the account for another 5.5 yea e same…
A: Future value of deposit includes the amount being deposited and amount of compounding interest…
Q: Postal Express has outlets throughout the world. It also keeps funds for transactions purposes in…
A: Exchange rate and interest rate differential helps to generate the profit or to result a loss. It is…
Q: Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $55,000 is invested in Stock A…
A: Given: Total value =$100,000 Invested in stock A = $55,000 Stock A Beta = 0.75 Stock B beta = 1.79
Q: China has a fixed rate regime. They keep their currency in terms of trade, fixed against the US…
A: Economy refers to the state or country in which the production of goods or services is to be done.…
Q: o raise funds for improvements by issuing 51⁄2 % bonds. There is P 20,000 available per year for…
A: Price of bond is the present value of annual interest payments and present value of redemption value…
Q: What are the three 'C's' of mortgage underwriting? What is one way in which each of the 'C's' is…
A: When you buy house than you need loan for home but there is need of down payment also and remaining…
Q: n two different markets, you see the following prices. Market #1: 20 Call = 5.50, 20 Put = 3.50,…
A: Call option means right to buy, while put option means right to sell. The options are quoted at…
Q: What is lease assignment? What is subletting? Explain at least one main difference between these…
A: In the world of finance in general and letting out of properties in particular the concepts of lease…
Q: Sam owns the bank some money at 5% per year. After half a year, he paid 15 dollars as interest. HOW…
A: The banks gives the loan to the customers but the charge the interest on the loan and customers have…
Q: f you issue a thrifty year fixed rate mortgage to finance the purchase of a home you are locked into…
A: Mortgage It is a type of loan where borrower pays a series of fixed periodic payment. This periodic…
Q: Doral Division of Resorts International reported net operating profit after taxes totaling $120,000…
A: Weighted Average cost of capital (WACC): The weighted average cost of capital is the weighted cost…
Q: Earnest T needs $900 for his next trip to Raleigh. He has $660 in cash. How long in years will it…
A: Current value (P0) = $660 Future value (FV) = $900 Quarterly interest rate (r) = 0.03325 (i.e. 0.133…
Q: Amazon trade continuously. rate = 20-strike maturing shares currently ST 12.31. The compounded one…
A: Put call parity is used quite extensively to determine the option prices. Based on put call parity…
Q: Accumulate P30,000 for 3 years and 6 months at 16% compounded semiannually.
A: Future Value = P30,000 Time Period = 3 Years and 6 Months Interest Rate = 16%
Q: Classify each of the following costs for Harrison Company as a selling or general and administrative…
A: Period costs - Period costs are those costs that cannot be capitalized on a company's balance sheet…
Q: Zeta Printers is considering replacing the existing press with a more efficient press. The new press…
A: After tax salvage value of the fixed asset is calculated as shown below. After tax salvage…
Q: An insurance company must make payments of $3 million in two years and $2 million in three years on…
A: Payment in second year is $3 million Payment in third year is $2 million Current Interest rate is 8%…
Q: stion 4 Ellen now has $125. How much would she have after 8 years if she leaves it invested at 8.5…
A: The future value of money includes the amount being deposited today and compound interest being…
Q: How far away is the horizon date? The terminal, or horizon, date is infinity since common stocks do…
A: We can use the dividend discount model here. As per the dividend discount model the value of a stock…
Q: A property costs $5 million. It will generate positive cash flows for years 1-15. Cash flow in year…
A: In given question, We required to calculate Net present value (NPV). Net present value (NPV) is the…
Q: Debt will always have a cost basis. that is less than equity. OA. True OB. False
A: Debt - Debt is referred to as the amount of money that is borrowed by one party from another and is…
Q: Sally plans to make continuous deposits to a savings account. She wants to accumulate $40,000 in 10…
A: Annual payment refers to the amount paid on annual basis for a specific period of time on which…
Q: All rates in this question use semi-annual compounding. You observe a two year spot rate of 6.00%,…
A: Pure Expectation theory of interest rate states that the return of holding two year bond is the same…
Q: Explain why the price of a put option is higher when the strike price is higher.
A: The put option is a type of option which will be offering with the right of selling a particular…
Q: The Bloomberg screen below shows the Nasdaq Index price over the last year. Desc the technical…
A: The chart gives one year candlestick data along with volumes traded (the part below). The technical…
Step by step
Solved in 2 steps
- Ryan invests $4400 in two different accounts, the first account paid 8%, the second account paid 14% in interest. At the end of the first year he had earned $436 in interest. How much was in each account?Maria invests a total of $29,500 in two accounts paying 15% and 14% annual interest, respectively. How much was invested in each account if, after one year, the total interest was $4,330.00Ms. Walsh invested $35,000 in two accounts. one yielding 8% interest and the other yielding 9%. if she received a total of $3,000 in interest at the end of the year, how much did she invest in each account? the amount invested at 8% was $ the amount invested at 9% was $
- Kristina invests a total of $23,000 in two accounts. The first account earned an annual interest rate of 12% and the second account earned an annual interest of 10%. At the end of one year, the total amount of money gained was $2,470.00. How much was invested into each account?_________$ was invested in the account that earned 12% and__________$ was invested in the account that earned 10%.Andrew T. invested $15,000 in a high-yield account. At the end of 30 years he closed the account and received $539,250. Compute the effective interest rate he received on the account.Jim invests $15,000 today into an account, If the amount in the account accumulates to $17,364.37 at the end of 3 years, what was the interest rate that Jim earned on the account?
- A woman has a total of $8,000 to invest. She invests part of the money in an account that pays 5% per year and the rest in an account that pays 11% per year. If the interest earned in the first year is $460, how much did she invest in each account? account paying 5% $________ account paying 11% $___________Frank invests $ 4500 dollars into an account earning interest compounded quarterly. After 10 years there is $ 5600 in the account. What was the interest rate?Joshua borrowed $800 for one year and paid $40 in interest. The bank charged him a service charge of $7. If Joshua paid the $800 in 12 equal monthly payments, what is the APR?
- Andrew T. invested $15,000 in a high yield account. At the end of 30 years he closed the account and received $539,250. Compute the effective interest rate he received on the account. Use excelZach depsoits a $38,000 one-time lump sum in an account with an APR of 7% that is compounded quarterly. What is the value of Zach's investment after 24 years?Mr. Chua invest 45,000 into two different accounts which pay 7% and 8% annual interest. If he earned a total of 45,000 for the year, how much did he invest at each rate?