Start your trial now! First week only $4.99!*arrow_forward*

Question

You start out with $74 and find out you can earn 6% interest on your money for the next 36 years. How much interest will you have earned after 36 years? Round to the nearest cent.

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: Kaye's Kitchenware has a market/book ratio equal to 1.200. The firm's stock price is 12.30 USD/share...

A: Market/book ratio of equity = 1.200Hence, MVE / BVE = 1.2Current stock price, P = $ 12.30 / shareNos...

Q: Robinson's has 46,000 shares of stock outstanding with a par value of $1 per share and a market pric...

A: The firm announces the stock split of 2-for-1.

Q: You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a...

A: Introduction: Beta less than 1 state that the security price will move with the market and a beta mo...

Q: Can you please help me solve this problem for C but can you do it step by step. Thank

A: Calculating the value of Equivalent Annual Cost. We have,[- $ 0.43 – (60/1,000 x 500 x C)* PVIFA (10...

Q: Bank M offers the following terms for a $10 million loan: interest rate: 8 percent for one year on...

A: If the firm intends to borrow the $10 million for the entire year.For Bank M:Interest rate is 8 %. S...

Q: What are investment assets ?

A: Investment Assets: Investment assets are termed as tangible or intangible things that are acquired f...

Q: Hi, I'm looking for help with solving the answer for the following question. I've tried it myself se...

A: Calculation of future value:There are 525,600 minutes in a year. So there are 10,512,000 minutes for...

Q: Can I have this explained? Am confused. Now you have $20,000 in your savings account in which you ea...

A: Calculation of Quarterly Interest Rate:

Q: your client wants to buy a new car. the financing terms are: sticker price: 100,000.00 usd cash disc...

A: Upfront purchase price = $ 100,000 - 21% discount = 79,000Hence, PV = - 79,000Otherwise under instal...

Q: Porter’s five-factor model provides a structure for analyzing the investment value of an industry or...

A: Porter’s Five Forces Analysis: Porter’s five forces framework is a method to analyze competition for...

Q: You are serving on a jury. A plaintiff is suing the city for injuries sustained after a freak street...

A: All financials in this solution are in $.Rate per month = R = (1 + EAR)1/12 – 1 = 1.091/12 – 1 = 0.7...

Q: A bond with a coupon rate of 7.30% has a price that today equals $868.92. The $1,000 face value bond...

A: Calculation of Yield to Maturity of the Bond:

Q: Everest Inc. is presently enjoying relatively high growth because of a surge in the demand for its n...

A: All financials below are in $.D0 = 0.85There are three stages of growth: g1 =28% for next two years ...

Q: If the annual geometric mean for the equity risk premium is 8.4 percent, what percentage of the equi...

A: Calculation of Percentage of Equity Risk Premium:

Q: Mojo Mining has a bond outstanding that sells for $2,183 and matures in 19 years. The bond pays semi...

A: Cost of debt: It is the overall rate that the company pays to utilize these kinds of debt financing.

Q: Tommy Corp. can borrow from its bank at 17 percent to take a cash discount. The terms of the cash d...

A: The terms of the cash discount are 3/19, net 45. Discount %age, D = 3%Discount period, DP = 19 daysF...

Q: The following numbers were randomly generated from a standard normal distribution: -0.25 0.3 ...

A: Geometric Brownian Motion:It is a Markov process. In this price of stock follows random walk and is ...

Q: Which are the main legislative acts governing the Mergers & Aquisition activities in the United ...

A: Mergers and Acquisitions (M&A) are transactions of uniting two or more companies into one. The m...

Q: Romagnoli Company is considering a 3-year investment project that involves the purchase of a new man...

A: Since we have to handle multiple variables here, we will use Microsoft Excel to get the final answer...

Q: What is opportunity cost and how does it affect the decision-making process for business decisions?

A: Discuss the opportunity cost and the way how it affects the decision making process for business dec...

Q: Bethesda Mining is a midsized coal mining company with 20 mines located in Ohio, Pennsylvania, West ...

A: Given, Value of land is $6,500,000.Equipment cost is $95,000,000.Equipment life is 7 years.Equipment...

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY: ...

A: Calculating of the expected retained profit for the next year. We have,Profit margin = 12 % of sales...

Q: A) Use the appropriate formula to find the value of the annuity. B) Find the interest. Periodic ...

A: Part (a)If an annuity A is paid at the end of period over N periods and bears a discount (interest) ...

Q: Suppose you wish to invest in an annuity so that you will have $120,000 at some future date for your...

A: We invest $350 monthly at a interest rate of 5.85% per month in order to give the child $120,000 at ...

Q: I already ask this but I whant know how you do the calculation, please could you show me all the ste...

A: Calculating the price of bond if interest rate on the bond is 10%. We have,Price of bond = C [1- (1 ...

Q: Shown below are the investment weights for the securities held in four different portfolios: three m...

A: a.Formula for calculation of active share (AS):

Q: Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barrin...

A: Part (a)D0 = $4.10; Ke = 14%; Dividend growth rate = g = 4%D1 = D0 x (1 + g) = 4.10 x (1 + 4%) = 4....

Q: NOTE: You already replied on this question with the answers as indicated below. Unfortunately, all a...

A: Part (a)All financials below are in $ mn.The net cash flow at time 0 if the old equipment is replace...

Q: The potential loss incurred from purchasing a call option is finite, but the potential loss to the s...

A: Let's figure out the payoff to the seller or writer of the call option at the time of expiration of...

Q: Simone's Sweets is an all-equity firm that has 9,100 shares of stock outstanding at a market price o...

A: Calculating the earnings per share (EPS) of levered firm and unlevered firm. We have,Number of stock...

Q: A ten-year bond, with par value equals $1000, pays 10% annually. If similar bonds are currently yiel...

A: Calculation of market value of bonds: Excel spreadsheet:

Q: Money is deposited at the end of each week into an investment paying 2.6% interest compounded weekly...

A: Calculating the rent of the increasing annuity. We have,Rent of increasing annuity = [r / (1+r)n – 1...

Q: Three years ago, you founded Outdoor Recreation, Inc., a retailer specializing in the sale of equipm...

A: All financials re in $ mn. Number of shares are in mn. Share price, earnings per share are in $.Fore...

Q: Suppose that the standard deviation of returns from a typical share is about 0.45 (or 45%) a year. T...

A: Let's try to solve this problem conceptually first before getting into excel.Suppose we include n nu...

Q: 1. Multinational corporations Why do companies go global? Multinational corporations operate in loca...

A: The best describe reason for Saltwater Corp is “to seek production efficiency”.Justification: The co...

Q: Is the corporate tax schedule progressive? Why or why not?

A: A tax schedule can either regressive or progressive. It depends upon how the scehdule has been drawn...

Q: Case Study #3: Chapter 6 Business Analysis - A business can be valued by capitalizing its earnings ...

A: You have asked a question with five sub parts. I will address the first three sub parts. Please post...

Q: Given the following information for Watson Power Co., Find the WACC. Assume the company’s tax rate i...

A: Calculation of WACC:

Q: how to solve a-c?

A: Calculating the value of each amount in the flexible budget. We have,

Q: XXX, Inc. finances tis seasonal working capital need with short-term bank loans. Management plans to...

A: Calculating the interest payment on the working capital loan. We have,Loan Amount = $ 65,000Interest...

Q: The credit card with the transactions described in the popup below uses the average daily balance me...

A: Credit CardIt is a card issued to customers for making payment towards goods and services. These car...

Q: What are spot rates and forward rates? Suppose you open the newspaper today and observe the followin...

A: Answer 1:The correct answer is “discount” in the forward market.Justification: This is because of th...

Q: Bethesda Water has an issue of preferred stock outstanding with a coupon rate of 3.80 percent that s...

A: Calculation of cost of preferred stock:

Q: A retail coffee company is planning to open 90 new coffee outlets that are expected to generate $15....

A: Expected cash flows at the end of year 1, C1 = $ 15.6 mnGrowth rate in the cash flows, g = 3.4% in p...

Q: Energetic Engines is trying to estimate its cost bonds that pay $20 interest every six months. Each ...

A: Calculating the value of bond yield. We have,Bond yield = Coupon Payment / Face value of bondHere,Co...

Q: Modern Artifacts can produce keepsakes that will be sold for $60 each. Nondepreciation fixed costs a...

A: Your answers to part (a), (b) and (c) are correct. Hence, I am not solving them again. Further you h...

Q: Suppose the current risk-free rate of return is 3.5 percent and the expected market return is 9 perc...

A: Introduction: Retained earnings are the revenues or profits that an organization has produced to dat...

Q: If you were a CFO considering implementation of a dividend payout policy, which factors would influe...

A: Dividend payout policy: An organization's dividend policy manages the measure of dividends paid out ...

Q: What are some of the possible consequences should a home owner allow the policy to lapse?

A: If the policyholder of the property insurance fails to make multiple payments, then the homeowners i...

Q: How to determine the allocation rate for each activity?

A: Activity based costing first traces costs to activities then to the products. Underlying assumption ...