PLEASE don't use excel for this. Show the solution with formula needed. COMPOUND INTEREST 1. When compounded bi-monthly, P150,000.00 becomes P223,183.00 after 5 years. What is the nominal rate of interest?
Q: Seth Fitch owns a small retail ice cream parlor. He is considering expanding the business and has id...
A: Payback period is the period up to which initial cost of the investment is recovered. It is calculat...
Q: which of the following entities would relative valuation be appropriate? a.) a cooperative b.) a p...
A: To assess a firm's financial worth, a relative valuation model compares its value to that of its riv...
Q: The interest rate in Japan is 1%. The yen to dollar spot exchange rate is ¥100 per dollar and the f...
A: Covered Interest rate parity It provides relationships among interest rates and exchange rates (spo...
Q: On January 1, Year 1, you are considering the purchase of Nico Enterprises' common stock. Based on y...
A: Current value of common stock can be calculated as the summation of present value of dividend paymen...
Q: Dozier Corporation is a fast-growing supplier of office products. Analysts project the following fre...
A: Here, To Find: Part 1. Horizon value =? Part 2. Current value of operations =? Part 3. Intrinsic va...
Q: Mr. Jackson is faced with a scenario and as a final year banking and finance student; you are requir...
A: Investing or borrowing a sum of money for a period of less than one year is known as short-term fina...
Q: Today is a Tamara's 25th birthday, she decided to deposited a 14500 at a rate of 12% per annum to he...
A: Deposit on 25th birthday (D0) = 14500 Growth rate = 10% r = 12%
Q: The first of 10 semiannual payments of $2900 will be made 5, years from today. What is the present v...
A: Present Value refers to the value of cash flows today which is to be received at some future time gi...
Q: A finance company paid a merchant $3,975 for a conditional sale contract after discounting it to yie...
A: The value of payment or receipt to be executed in future at present time is called the Present Value...
Q: Company ABS’s Cash Conversion Cycle has 241.46 days while Company CBN has 194 days of CCC. Which com...
A: Cash conversion cycle (CCC) refers to the time period ( number of days) between the payment for raw ...
Q: What is the difference between a budget deficit and a budget surplus?
A: A budget deficit is when the expenses outweigh the revenue brought in by a project. Conversely, a bu...
Q: return on equity ratio
A: The ratio refers to the relation between two financial values which shows the comparison between the...
Q: What are Finances?
A: Finances: It contains leverage/debt, banking, capital markets, investments, credit, and the creatio...
Q: Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed o...
A: Given: Principal “P” = $500 Simple rate = 9% Number of years “t” = 11
Q: Harper Electronics is considering investing in manufacturing equipment expected to cost $250,000. Th...
A: Capital Budgeting methods: Managers use several capital budgeting methods while evaluating investmen...
Q: Which of the following is NOT typically a benefit of taking a 15 year mortgage instead of a 30 year ...
A: 15 year mortgage enables a person to payoff the loan earlier as compared to 30 year mortgage. 15 yea...
Q: When you were at lunch, you overheard a heated conversation between two employees of Big Rock. One w...
A: When an investor invests in a fund then he or she needs to know how their investment is performing a...
Q: A stock costs $80 and pays a $2 annual dividend. If you expect to sell the stock after four years fo...
A: The required return on the stock represents the total return earned on the stock. This return is con...
Q: Matt Corpn bonds mature in 8 years, have a par value of $1,000, and a coupon rate of 6.7%. The marke...
A: Present Value can be calculated using PV function in excel PV (rate, nper, pmt, [Fv], [type]) Rat...
Q: Analyzing the quality of firm earnings) Kabutell, Inc. had net income of ,$ 800,000 cash flow fr...
A: a) Quality of Earning Ratio=Cashflow from operations/ Net income =500,000/800,000=0.625= 62.5% hence...
Q: A stock does not currently pay a dividend, but you expect to sell the stock for $41 in 3 years. The ...
A: The stock price which is the maximum price to be paid for share consists of dividends and terminal v...
Q: 22. Alfa Corp's stock pr value per share was $37.50. What is its P/B ratio? * O a) 1.34 O b) 2.4 074...
A: Dupont ROE With profit margin, total asset turnover and equity multiplier, the Dupont ROE is calcula...
Q: Which arrangement of the different modes of financing appropriately reflects the related cost of cap...
A: Highest cost capital modes of fiannacing is cost of equity.
Q: what is the stock market, and why is it important?
A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of e...
Q: A few years ago, Big Rock invested in a number of bonds with various maturity dates. Several of thes...
A: Explanation to Bonds Bonds are referred to as fixed-income securities issued by governments and corp...
Q: A $8037.58 investment matures in 6 years, 5 months. Find the maturity valu...
A: Investment amount (X) = $8037.58 n = 6 years 5 months = 6 (5/12) = 6.4167 years Interest rate = 2.7%...
Q: PROBLEM 4: A note purchased for P100 000 .00 is due in 12 months at 10% simple interest . After 5 mo...
A: A note is a promissory note that is used by the one party to pay agreed amount to the other party. I...
Q: What are the signals of the financial distress that we can look for in the Annual Comprehensive Fina...
A: Financial distress is a condition in which a company or individual is unable to generate sufficient ...
Q: over/undervalued by ___ compared to the group average.
A: Group average = (5+5.25+4.80+4.90+5.30)/5 = 25.25/5 = 5.05
Q: 18. TSE has an equity multiplier of 1.88, and its assets are financed with some combinations of long...
A: Equity multiplier = 1.88
Q: Discuss on the key areas to look at when learning and analysing IFrs for smes
A: International Financial Reporting Standards (IFRS) are the set of rules of accounting which are used...
Q: According to the Black-Scholes Model, a call option has a value of 4,500. The underlying asset curre...
A: Market Value is 140,000 Total Exercise price of the option is 138,000 Market price of the call optio...
Q: 10. Anna bought a bookcase at a yard sale for $75.00 and plans to sell it in her antique store for $...
A: The gap between a product's selling price and its cost is known as markup (or price spread). It's us...
Q: What is the Macaulay duration of a bond with a coupon of 5.8 percent, eleven years to maturity, and ...
A: The weighted average term to maturity of a bond's cash flows is known as the Macaulay duration. The ...
Q: has a callable bond outstanding with a coupon of 10.8 percent, 25 years to maturity, call protection...
A: The return a bondholder will earn if the bond is held until the call date, which occurs before the b...
Q: Find the interest rate compounded quarterly on 9,500 whose periodic deposit is 300 every end of thre...
A: Total amount is 9500 Deposit per quater is 300 Time period is 6 years and 9 months To Find: Interes...
Q: 25. Alpha Co. has an equity book value per share = $20 and its ROE = %3D 20%. What is its earnings p...
A: Solution:- Earnings per share (EPS) means the earnings of an entity attributable to per share. So, E...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: WACC: It stands for Weighted Average Cost of Capital. It refers to the total cost of the project. It...
Q: 9. In December, The Corner Coffee Spot had an average inventory of $123, 456 and retail sales of $19...
A: Since you have posted multiple questions, we shall be solving the first one for you. In case you wis...
Q: A$14,500 bond that has a coupon rate of 5.80% payable semi-annually and maturity of 5 years was purc...
A: Par value (FV) = $14500 Coupon rate = 5.80% Semi annual coupon amount (C) = 14500*0.0580/2 = $420.50...
Q: Emily Dao, 27, just received a promotion at work that increased her annual salary to $37,000. She is...
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...
Q: IRRs
A: IRR stands for internal rate of return is a process of computing the percentage of return over inves...
Q: A perpetuity is to pay $21,000 at the end of every six months. How much less money is required to fu...
A: Solution:- Perpetuity means the payment made forever. Value of perpetuity = Periodic Payments / Peri...
Q: A rate is made up of claims, retention and profit. If 80% of a rate is claims, and retention equate...
A: Concept . In the given case , Rate comprises of claims , retention and profit. Rate = claims + reten...
Q: Company ABS’s Cash Conversion Cycle has 241.46 days while Company CBN has 194 days of CCC. Which com...
A: The cash conversion cycle depicts the movement of the cash from the investing period to the harvesti...
Q: Duration is a measurement of a bond’s interest rate risk. It is also referred to as the responsivene...
A: Bond duration or duration of the bond means the price sensitivity of the bond when the interest rate...
Q: Consider a forward contract that expires in 9 months. The underlying asset is worth $250 and the for...
A: Underlying price (S) = $250 r = 8% n = 9 months = 0.75 years
Q: Which of the following statements is false? A. Historical VaR simulation involves using pa...
A: The financial term Value at Risk (VaR) estimates the risk of an investment. VaR is a statistical tec...
Q: You have researched your dream around-the-world vacation and determined that the total cost of the v...
A: Monthly saving (S) = $200 r = 9.5% per annum = 0.7917% per month Let n = Number of months needed to ...
Q: Amortization Problem Loan Amount: $150,000.00 Loan Term: 30 Years Interest Rate: 4.00% APR N PV PMT ...
A: Given: Amortization Problem Loan amount $150,000 Loan term 30 Interest rate 4%
Step by step
Solved in 2 steps
- (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Complete or fill in the entire chart for the below annuities by filling in all the blanks # Payment and frequency (PMT) Time in years (n) Interest rate and compound frequency (I/Y) Present Value (PV) Future Value (FV) 6) $370.00 per end of quarter 9 years 5% compounded quarterly Not Applicable _______________ 7) $100.00 per month 5 years 6 % compounded monthly ______________ Not Applicable 8) $__________per year 8 years 12 % compounded annually $10,000 Not Applicable 9) $2,000 per quarter __________years 8.75 % compounded quarterly Not Applicable $112,181.65 10) $3,000 every 6 months 24 payments ____________% compounded semi-annually $50,000 Not Applicable 11) $_________ monthly 15 years 18% compounded monthly Not Applicable $1,000,0000 12) $1,690 every 3 months _________ years 2 ¼ % compounded quarterly…
- When compounded bi-monthly P15000 becomes P22300 after 5 years. What is the interest rate? NOTE: Express the final answer in percentage (ex.12.13% but no need to write % just the value of 12.13 only; NOT 0.1213)Assume that a one-year CD purchased for $1000 pays an APR of 6% that is compounded semi-annually. How much is in the account at the end of each compounding period? (Calculate the interest and compound it each period rather than using the compound interest formula. Round your answers to the nearest cent.) first period $ second period $ How much total interest does it earn? (Round your answer to the nearest cent.)$ What is the APY? %What is the present value of 6 annual payments of $6,340 each with the first payment being received immediately? Assume you can invest money at a 7.75% pa.. but with semiannual compounding . Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , enter $ 12,327.24987 as 12327.25 .
- An Account has an balance of $3500 an earns an annual compound intrest rate over 2 yrs leaving the account with a new balance of $4390.08 how much is the annual interest rate?Suppose that $2000 is loaned at a rate of 9% , compounded monthly. Assuming that no payments are made, find the amount owed after 6 years. Do not round any intermediate computations, and round your answer to the nearest cent.You just borrowed $1,000,000 using a 30 year home loan that's interest-only for the first 4 years, and principal and interest (P&I) for the remaining 26 years. The interest rate is 5.76% pa compounding monthly which is not expected to change. Which of the following statements is NOT correct? Select one: a. The effective monthly rate is 0.048 per month, given as a decimal. If the interest rate falls, the IO and P&I monthly payments will fall. b. If the IO term was one year shorter so the P&I term was one year longer, then the monthly payments over the P&I term would be lower. c. The IO loan's perpetuity factor' is 208.333333, while the P&I loan's annuity factor is 161.568937. d. The IO loan payments will be $4,800 per month, rounded to the nearest cent. e. The P&I loan payments will be $6,189.31 per month, rounded to the nearest cent.
- 1000 dollars is deposited into an account at the beginning of the year and the value at the end of five years is 1276.30. (a) If the account was subject to a force of interest δ(t) = kt where t is in years, k =? (b) If inflation is 1 percent a year, what is the adjusted effective yearly interest rate?Suppose S500 is invested at 4% compounded quarterly. (a) How long will it take the investament to accumulate to $750 if the exact method for accumulation is in effect? (b) How long will it take the investment to accumulate to $750 if the practical method for accumulation is in effect? Be sure to us linear interpolation! (e) What anmual effective interest rate must 8500 be invested at to accumulate to S750 in 10 years?Please Don't use excel to Ans Question- What is the size of the payments that must be deposited at the end of each 6-month period in an account that pays 8.5%, compounded semiannually, so that the account will have a future value of $200,000 at the end of 20 years? (Round your answer to the nearest cent
