1. A bank deposit of P10, 000 has a real valueof P12,136.30 after 3 years. What is its actualamount in the bank on that year if inflation rateis 5% pa ?Select the correct response:O P11,680.78O P11,869.21O P10,731.67O P12, 316.30O P14,049.28

Real value after 3 years = P 12,136.30 Inflation rate = 5% Period = 3 Years

Answered: 1. A bank deposit of P10, 000 has a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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QUESTION 1 Considering the following scenario. In years 0, 2, 4, 6, and 8, you deposit $750 in your savings account. The saving account earns 4.25% compounded anbually. What is the future value in year 10? 4,847.22 5,411.56 3,579.94 6,411.56
Suppose the Royal Bank of Pullman has the following assets: cash = 100 (with modified duration of 0) and a 10-year loan worth $900 (with modified duration of 9). Its liabilities are a CD worth $800 (with a modified duration of 2). If interest rates rise by 1% the bank's equity will fall by ________ %. A. 9 B. 5.6 C. 2 D. 6.5
1. In a bank account that pays interest 8% p.a, what should you deposit now to have a balance of £900 a year from now? £ 数字 Enter an answer correct to 2 decimal places. 2.a) You deposit £300 into a savings account, which pays compound interest at a rate of 7% per annum. How much money do you have after 3 years? £ 数字 Enter an answer correct to 2 decimal places. b) How many years must you wait to double your capital? 数字 Enter an integer. years
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24) One of the local banks indicates that it computes the interest it pays on savings accounts by the continuous compounding method. Suppose you deposited $100 in the bank and they pay 4% per annum, compounded continuously. After 5 years, how much money will there be in the account? Select one: a. $ 122.14 b. $ 144.14 c. $ 322.14 d. $ 222.14 25) At 10% per year simple interest, how long will it take for a deposit of $1000 now to accumulate to $100,000? Select one: a. n=99 years b. n=50 years c. n=44 years d. n= 990 years 26) When only one alternative can be selected from two or more, the alternatives are said to be: Select one: a. subjective alternatives b. independent alternatives c. revenue alternatives d. mutually exclusive
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Suppose a bank has the following Balance Sheet Assets Liabilities RSA = 120 RSL = 90 FRL = X FRA = 110 (Fixed rate liabilities can be found if needed by determining what number it must be to balance the balance sheet.) Suppose all the Assets and Liabilities were set last year when the interest rate was 10, if the interest rate has changed by 2% since that time what is the current cost from all of the bank's liabilities? Your Answer:
5. A bank deposit of P12,045 two years ago has an actual amount now of P14,049.28 but its calculated real value is onlyP12,136.30. What is the effective interest rate earned by the deposit? Select the correct response: O 7.59% O 8.00% O 0.758% O 0.378%
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If you deposit money today in an account that pays 10.7 percent annual interest, how long will it take to double your money? a. 6.82 years b. 9.35 years c. 10.70 years d. 2.73 years e. The answer cannot be calculated without knowing how much money is initially deposited.
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1. A bank deposit of P10, 000 has a real value of P12,136.30 after 3 years. What is its actual amount in the bank on that year if inflation rate is 5% pa ? Select the correct response.: O P11,680.78 O P11,869.21 O P10,731.67 O P12, 316.30 O P14,049.28