Miss A wants to have P35436 for 2.1 years starting today which is to be used for research. If she intends to make a monthly deposit at the beginning of each month in a time deposit paying15% compounded monthly, how much is her regular deposit? In 2 decimal values
Q: III. 3. Nominal Rate - Effective Rate -=[(+4)²-1] 100 _j =m[( + n) = − 1] » x 100 40-0-|(1 +14-1²-1…
A: Effective Interest Rate: EAR represents the rate earned on an investment after the effects of…
Q: Blossom Company is considering two different, mutually exclusive capital expenditure proposals.…
A: Calculation of NPV:- Present value of cash inflows- Present value of cash outflows. Calculation of…
Q: You are an analyst in the treasury department of the Maritime Bank (MB). One of your corporate…
A: In this question , Maritime Bank wants to raise the loan US $100 Million for two years to one of…
Q: ou are considering an investment that will pay you $1,200 in two year, $2,400 in three years and…
A: Price of the investment is the PV of all its future income. We need to discount each cash outflow to…
Q: In December 2022, the Fed raised interest rates to their highest levels in 15 years. This makes…
A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…
Q: George Franklin paid taxes of $4,650 on a taxable income of $34,000 . What was his average tax…
A: The taxes refer to the contribution that entities (individual or institutional) provide to the…
Q: What are the important properties of real estate as an asset class? How are they similar/different…
A: The real estate investment class is a type of investment class which is focusing upon investing in…
Q: You are considering a risk-free investment that costs $4000 and pays $5000 in one year. You can…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: Find the future value of a 7-year annuity due with payments of $1,150 and an annually compounded…
A: Future Value of Annuity due = (1+i) x P (1+i)n-1i where i= Interest rate per period n= number of…
Q: Owen's Electronics has nine operating plants in seven southwestern states. Sales for last year were…
A: New funds refer to the funds that the company generates for financing requirements. There are…
Q: Question 29 A borrower is borrowing $300,000 with a 30 year term, monthly payments, and has the…
A: The effective borrowing cost refers to the actual interest rate that the borrower pays for borrowing…
Q: Two risky assets: A and B. The expected return for A is 15% and for B 30%. The variance for…
A: Correlation(A,B) = Cov(A,B) / (SD(A) * SD(B)) Correlation(A,B) = -0.05 / (sqrt(200) * sqrt(800))…
Q: From the information given below, determine Steve's gross income for tax purposes. Salary $32,000…
A: The gross income considered for tax purposes will include the following. Salary, if not tax deducted…
Q: In a Treasury auction of Rs 2,500 million par value 91-day T-bills, the following bids were…
A: The Treasury will conduct the bidding process for T-bills in descending order of price, meaning that…
Q: $100,000 of annual repair is needed to maintain a tunnel. if the interest rate earned on funds held…
A: The PV of a payment series is used to find out the actual worth of the payments assuming they are…
Q: a-1. What is the NPV of each project if the discount rate is 10%? (Do not round intermediate…
A: NPV is the discounted value of future cash inflows. NPV is calculated by discounting the cash…
Q: Corporation X can issue straight 5-year debt (bonds) at a yield to maturity of 5%. If a 5-year…
A: A structured note issued by Corporation X would provide the return from the bonds minus the cost of…
Q: Gatto, Incorporated, has declared a $5.85 per share dividend. Suppose capital gains are not taxed,…
A: Dividend is the distribution of profit among shareholders. Stock dividend is that form of dividend…
Q: Can you tell me how to calculate realized yield on a financial calculator?
A: The realized yield is the actual return on an investment, calculated after taking into account the…
Q: borrows $500 for four months at 9%. How much interest must he pay?
A: The amounts are borrowed from the banks for short term and long term and interest are to be paid on…
Q: What rate compounded monthly will yield the effective rate 19.75%?
A: The effective annual rate (u) is 19.75%. The compounding period (m) is 12.
Q: 2. Which statement is not correct? a) Municipal bonds tend to have a lower yield than Treasuries b)…
A: Municipal bonds are securities issued by state, county or local government to raise money for…
Q: (a) Up to age 60, the individual's deposits form an because the deposits are made at the should be…
A: Let us first calculate the interest applicable for every quarter. Interest for every quarter =…
Q: A proposed cost-saving device has an installed cost of $820,000. The device will be used in a…
A: The Company manufacture and sells goods after bearing lots of costs such as material labor,…
Q: You are the CFO of a company and the CEO wants you to tell him which evolution we will see in…
A: As the CFO, I am reporting that the outlook for interest rates in the near future is uncertain.…
Q: Consider a financial institution whose asset and liability both consist of coupon bonds only. The…
A: a) Market values: Asset: Price = FV / (1 + yield/2)^(number of coupon payments) = 100 / (1 +…
Q: Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard…
A: Standard Deviation of Portfolio = W1σ1 + W2σ2 + 2W1 W2 12 Cov12 where, W1 = Weight of Risky…
Q: You just started college and plan to go to for a trek to Everest Base Camp for a trek after you…
A: The concept of TVM states that the money earns interest which makes money earned earlier worth more…
Q: A constant perpetuity with cash flow, C, will have the first cash flow occur exactly 17 years from…
A: The worth of the cash flows at the current point of time that will occur in future is called the…
Q: (RAROC) Financial institution B wants to evaluate the credit risk of a potential loan to a BBB-rated…
A: (a) To calculate the expected loss (EL) according to the duration model, we need to calculate the…
Q: Find the payment necessary to amortize a 4% loan of $900 compounded quarterly, with 14 quarterly…
A: The regular fixed periodic payments made at each periodic interval indicate annuity payments. The…
Q: Cam saved $295 each month for the last four years while he was working. Since he has now gone back…
A: This is a typical time value of money (TVM) concept based question. There are fairly standard…
Q: (Related to Checkpoint 9.3) (Bond valuation) Doisneau 24-year bonds have an annual coupon interest…
A: Bonds refer to an agreement between the lender and borrower for raising money for a certain period…
Q: Xuemeihas been managing five portfolios for the last year. She has collected the following…
A: We have portfolio of two stocks being combined in different proportion. We have to find the…
Q: Consider an economy with a (net) risk-free return r1 = 0:1 and a market portfolio with normally…
A: a) The maximization problem for investor A with CARA preferences can be written as: Maximize U =…
Q: Morgan Weatherspoon, a super salesman contemplating retirement on his fifty-fifth birthday, decides…
A: Formula = Marginal contribution to the fund = Balance of fund / cumulative FV value The balance…
Q: s a financial analyst, you have been tasked with evaluating Randy Watson Music's free cash flow.…
A: Operating capital is the amount of money needed to be invested in equipment, working capital and…
Q: Banks are regulated by e.g. Basel-II or -III-rules. a) Please name the reason why the Basel accords…
A: The Basel II Accord, the second of the three Basel Accords, was established to establish global…
Q: An insurance company is offering a new policy to its customers. Typically the policy is bought by a…
A:
Q: Direct Finance Lease - Lessor (PAS 17 and PFRS 16) Problem 18. On January 1,2011, SM leased an…
A: Annual Rental: The annual rental can be calculated as follows: Cost of Machinery / (1 + Implicit…
Q: The financial information below is for Mat Moery, who works as an administrative assistant in a law…
A: Networth is calculated as Assets - Liabilities. Revenue and expenses do not form part of the…
Q: If the treasury management section of the bank is attempting to minimise interest rate risk, how…
A: In order to minimize the risk, the treasury management must match the duration. It must calculate…
Q: If the rate at which you can exchange INR for USD is 19.3% better than the rate shown in Part 1…
A: Exchange rate quoted is 1 INR = USD 0.01637 INR is 19.3% stronger relative to USD Revised exchange…
Q: You are given the following data for four portfolios over a recent 10-year period: a) b) c) d)…
A:
Q: The Cricket Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to…
A: a). Stock price is calculated using following equation Stock price, Pn = D0×1+g(n+1)r-g Where, D0 is…
Q: You bought a stock for $76.81 and sold it after 4 years for $100.37. What is the average compound…
A: Compound annual growth rate (CAGR) is the average return on the investment which is there for more…
Q: 9. Historically, which type of debt instrument pays investors the highest gross interest rate? a) A…
A: A debt instrument is a financial asset that represents a promise to repay a debt to the holder of…
Q: You plan to invest $13223 into an investment that you hope will earn a return of 10.28%. You will…
A: Future Value = P * (1+r)^nWhere P = Principal / Present ValueR = Rate of returnN = Number of Period
Q: is the meaning of the statement that your net worth is the equity you have in your own life
A: When do business there is some own money and some money is borrowed from the market and there is a…
Miss A wants to have P35436 for 2.1 years starting today which is to be used for research. If she intends to make a monthly deposit at the beginning of each month in a time deposit paying15% compounded monthly, how much is her regular deposit? In 2 decimal values
Step by step
Solved in 5 steps with 2 images
- Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of P65,000, what recommendation would you make to Tandang SoraSara wants to make a deposit now into an account that earns 3% annually so that she will be able to withdraw an amount of $125 at the end of each of the next 5 years. How much should she deposit today?A woman borrows $2000 and agrees to pay 9% annual simple interest on the loan. She repays the loan, with interest, 3 years later. What does she owe? Round to 2 decimal places, if needed.
- Maria wants to have ₱750,000.00 at the end of 4 years for hergraduation expenses. She plans to deposit a certain amount at the end of each month to achieve this. Her bank pays 15% compounded monthly.a.) What is the monthly rate?b.) How many total deposits?Carol is depositing $1500 into an account earning 3%compounded semiannually. How much money will be in the account after 25 years?Your father offers to give you $400 on January 1, 2019. You will then make six additional equal payments each 6 months from July 2019 through January 2022. If your bank pays 8% compounded semiannually, how large must each payment be for you to end up with $1,000 on January 1, 2022? What is the Effective Annual Rate (EAR) earned on the bank account in part f? What is the Nominal Interest Rate or Annual Percentage Rate (APR) earned on the account?
- If Rita receives $41.64 interest for a deposit earning 7% simple interest for 170 days, what is the amount of her deposit? (round your answer to the nearest cent.)Sam deposits $900 at the end of every 6 months in an account that pays 6%, compounded semiannually. How much will he have at the end of 4 years? (a) State whether the problem relates to an ordinary annuity or an annuity due. ordinary annuity annuity due (b) Solve the problem. (Round your answer to the nearest cent.)Amy has an account that earns interest at a 10% annual effective rate of interest. She plans to make a level deposit at the beginning of each of the next 18 years so that her balance at the end of the 18 years will be $24000. What is the value of the required level deposit?
- Sammi deposits $12000 at the beginning of each 6-month period into a special savings account. This account will last for 7 years and pays the interest rate of 6% compounded semi-annually. What will be the balance when she closes the account in 7 years? $AnswerKelly Malone plans to have $58 withheld from her monthly paycheck and deposited in a savings account that earns 12% annually. compounded monthly. If Malone continues with her plan for one and one-half years, how much will be accumulated in the account on the date of the last deposit? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provlded. Round your final answer to 2 declmal places. Round "Table Factor" to 4 declmal places.) Periodic Cash Table Factor Total Accumulation Flow Table Values are Based on: 3DJane took out a loan from the bank today for X. She plans to repay this loan by making payments of $520.00 per month for a certain amount of time. If the interest rate on the loan is 1.12 percent per month, she makes her first $520.00 payment later today, and she makes her final monthly payment of $520.00 in 7 months, then what is X, the amount of the loan? O An amount less than $3,501.00 or an anmount greater than $4,238.00 O An amount equal to or greater than $3,501.00 but less than $3,739.00 O An amount equal to or greater than $3,739.00 but less than $3,980.00 O An amount equal to or greater than $3,980.00 but less than $4,081.00 O An amount equal to or greater than $4,081.00 but less than $4,238.00