Calculate the realized rate of return earned on a bond bought five years ago for $856, which is now selling for $850 and it also paid $60 in interest per year, which was reinvested in the bond.
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- $52,000 is invested in a 5-year fixed interest bond paying 5.5% per year. If interest is reinvested in the account, how much will the bond be worth in 5 years? Round your answer to the nearest dollar.you purchases a $1000 face value bond for $950. you held the bond for 10 years until it doubles in face value. what rate of return did you earn over the 10 years. Assume yearly compoundingInterest rates determine the present value of future amounts. (Round to the nearest dollar.) Read the requirements. View the Present Value of $1 table. View the Future Value of $1 table. View the Present Value of Ordinary Annuity of $1 table. View the Future Value of Ordinary Annuity of $1 table. Requirement 1. Determine the present value of seven-year bonds payable with face value of $91,000 and stated interest rate of 14%, paid semiannually. The market rate of interest is 14% at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.) Present Value 91000 When market rate of interest is 12% annually C When market rate of interest is 14% annually Requirement 2. Same bonds payable as in requirement 1, but the market interest rate is 16%. (Round intermediary calculations and final answer to the nearest whole dollar.) Present Value When market rate of interest is 16% annually Requirement 3. Same bonds payable as in requirement 1, but the market interest…
- 3. A $500 savings bond pays 6.5% compounded semiannually and matures in 7.5 years. A. What is the purchase price? B. How much interest will be earned? C. How long it takes the initial investment to double?Classify the financial problem. Assume a 4% interest rate compounded annually. Find the value of a $1,000 certificate in 6 years. A. amortizationB.ordinary annuity C.present valueD. sinking fundE.future value Answer the question. (Round your answer to the nearest cent.)You borrowed $343,191.15 14 years ago. The loan is structured as an amortized loan. The interest rate is 4% and you make monthly payments of 1811.49. The loan is amortized over 25 years. How much principal have you paid over the first 14 years?
- Compute the present value of a $3300 deposit in year 2, and another #2800 deposit at the end of year 4 if the interest rates are 9 percentA government bond pays $100 in interest each year for Three years and also returns the principal of $1,000 in the third year. How much is it worth in terms of today’s money if the rate of interest is 8 percent? If the rate of interest is 12 percent.1. An engineer paid P 110,000 for a P 100,000 bond that pays P 4,000 per year. In 20 years, the bond will be redeemed for P 105,000. What net rate of interest will the man obtain on his investment?
- Find the accumulated value of an investment of $20,000 for 5 years at an interest rate of 4.5% if the money is a. compounded semiannually; b. compounded quarterly; c. compounded monthly d. compounded continuously. Round answers to the nearest cent. Click the icon to view some finance formulas. *** a. What is the accumulated value if the money is compounded semiannually? (Round your answer to the nearest cent.) InHow much would your investment be worth if you deposited $5,555.55 into a bank that paid compound interest of 4% for 10 years compounded yearly?Bruno deposited $7,500 into an investment account and seven years later, the balance in the account was $10,910. What is the rate of return on this investment if interest is compounded annually? 5.5% 6.0% 6.5% 45.5%