A deposit of $50,000 is made into an account that pays 10% compounded semiannually. How much would be in the account after 10 years?                   (a) $81,445     (b) $129,685      (c) $132,665             (d) $336,375

Q: You borrow $11,000 from the bank at an interest rate of 6%, compounded annually. You are required to…

A: Compound interest is interest added to the principal amount of a loan or deposit, or interest on…

Q: If you deposit RM25,000 in an account earning 16% with quarterly compounding, how much would you…

A: Amount of Deposit = RM 25,000 Interest Rate = 16% per annum Quartery interest Rate(r) = 16%/4 = 4%…

Q: Calculate the future sum of $1,200, given that it will be held in the bank for 5 years and earn 14%…

A: Below details are given in the question : Present value = $1200 Time period = 5 years  Interest rate…

Q: How much will the account contain after 9 years and 3 months? How much interest will be earned?

A: Deposit amount = $600  Interest Rate = 5±70 compounded quarterly i.e 4.3 or 5.7 compounded quarterly…

Q: If $7,128 is deposited into an account that earns simple interest and it takes 9 years to earn…

A: Interest earned is 1796.26 No of years =9 Annual interest is = 1796.26/9 = 199.58

Q: Deposits of $100 are made monthly into a savings account that pays 3% compounded monthly. If the…

A: Required amount in the account 10 years after the last deposit=$128,484.76 Here, Future value…

Q: How much money must be put into a bank account yielding 3.5% (compounded annually) in order to have…

A: Money that must be put into a bank account yielding 3.5% (compounded annually) in order to have…

Q: You plan to make 15 annual deposits in a saving account that pays 6% interest compounded annually.…

A: Future Value = Present Value * (1+r)^nWhere,r = rate of interest per periodn = no. of compounding…

Q: you deposit $9000 into a bank account that pays 3.15% annual interest, compound quarterly. How much…

A: The time value of money is a concept in finance that accounts for the effect of compounding in…

Q: bank pays 5.25 percent compounded monthly on certificate accounts running for 6 years. Using 365…

A: The accumulated sum of money received after a certain period by making a deposit or investment at a…

Q: You are about to borrow $8,000 from a bank at an interest rate of 8% compounded annually. You are…

A: The money which is taken as a loan from the bank or from any financial institution is known as…

Q: You make annual deposits into a retirement account that earns 4% compound annual interest. The first…

A: Initial deposit = $5000 Interest rate = 4% Growth rate of deposits = 10%

Q: What is the amount of ten equal annual deposits that can provide five annualwithdrawals, where the…

A: Present value of the amount that is expected to be receiving in some future date is the current…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.