For the following investments, compute the amount of compound interest earned in1 year and the annual percentage yield (APY).Compound InterestEarned in 1 YearNominal InterestPrincipalRateCompounded$5,000.00 10%semiannuallyA$36,000.00 12%monthlyCA:Annual PercentageYield (APY)BDB:AZC:AD:

CASE 1Principal (P) = $5,000Nominal rate (r) = 10% or 0.1Compounding frequency (n) = 2…

For the following investments, compute the amount of compound interest earned in and the annual percentage yield (APY). 1 year Nominal Interest Principal Rate Compounded Compound Interest Earned in 1 Year Annual Percentage Yield (APY) $5,000.00 10% semiannually A B $36,000.00 12% monthly C D A: B: Z A C: E D: A

For the following investments, compute the amount of compound interest earned in and the annual percentage yield (APY). 1 year Nominal Interest Principal Rate Compounded Compound Interest Earned in 1 Year Annual Percentage Yield (APY) $5,000.00 10% semiannually A B $36,000.00 12% monthly C D A: B: Z A C: E D: 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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Compute the future value of the following annuity investments:S 1. P6,000 quarterly investment at 8% interest compounded quarterly for 8 years
What is the future value of an annuity due of $800 paid semi-annually for the next 7 years, with a yield of 5% p.a. compounded semi-annually? Select one: a. $13,215.16 b. $6,923.22 c. $11,200.00 d. $13,545.54
For a sum of money interetsed at 4% compunded semi- annually for 5 years. a) nominal rate of interest b) the periods rate of interest c) the compunding factors d) the numerical value of compounding factors
Find the nominal interest rate for each of the following investments. Principal Nominal Interest Rate % Compounding Frequency Term Maturity Value $10,525 annually 7 years $16,525 $11,000 semi-annually 12 years $17,500 $26,650 quarterly 4 years and 9 months $36,650 $24,000 monthly 5 years and 8 months $30,500
Compound Interest Table Complete the following schedule for investments a through f by indicating the relevant factor from the present value or future value table and the final present or future value amount. Investment Compounding a. Annuity b. Annuity Annually Semiannually Semiannually Annually c. Annuity d. Single Payment e. Single Payment Semiannually f. Single Payment Semiannually Factor Answer $ a. $ Annual Interest Rate Amount 5% $2,000 4% 1,000 6% 14,000 •Note: Round your answers to the nearest whole dollar. •Note: Do not use a negative sign (-) with your answers. b. 5% 9,000 6% 16,000 4% 9,600 $ C. Investment $ Period d. $ Payment at Beg. or End e. of Period 2 years End 3 years Beginning 4 years Beginning 6 years n/a 5 years n/a 4 years n/a $ f. Future Value or Present Value Future Present Future Present Future Present
1.An investment that has a maturity value of $3,400 and is discounted 5 years and 6 months before maturity at 4.80% compounded semi-annually. a. Calculate the discounted value of the investment. $0.00 Round to the nearest cent b. Calculate the amount by which the money is discounted.
4. Find the annualized returns for the following set of investments. Asset A HPR 10% В -6 8 Ꭰ 15 E 5 BCD Holding Period 8 months 15 months 2 Years 3 years 18 weeks
Calculate the future value of the following single amounts. Initial Investment Annual Rate Interest Compounded Period Invested 1. $8,000 10% Annually 7 years 2. 6,000 12 Semiannually 4 years 3. 9,000 8 Quarterly 3 years
Calculate the annual percentage yield for a certificate of deposit in the amount of $10,000 that will earn a total of $1,250 in interest during a term of 5 years (assume 365 days per year) Multiple Choice: 1.92% 0.89% 2.38% 12.5%
9
What is the difference between the total simple interest earned and the total monthly compound interest earned on an investment of $1546 at 3.87% annual interest for 10 years

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