Haatimvopened an RRSP deposit account on December 1, 2008, with a deposit of $1400. He added $1400 on September 1, 2010, and $1400 on March 1, 2012. How much is in his account on April 1, 2016, if the deposit earns 6.3% p.a. compounded monthly? The amount in the account is?
Q: Comment the CAPM result of Apple over 2022 and 2021
A: The cost of equity is the return that the owners of the company expect. The cost of equity is…
Q: nvestors require a return of 14.15 percent on Industrial Industries stock and require a return of…
A: The required rate of return can be ascertained by using the Capital Asset Pricing Model (CAPM). The…
Q: •Suppose that IBM would like to borrow fixed-rate yen, whereas Korea Development Bank (KDB) would…
A: Here, Fixed Interest Rate Floating Interest Rate IBM 4.5% LIBOR+0.25% KDB 4.9% LIBOR+0.8%
Q: South Korean firm is able to obtain a three-year loan inSouth Korean Won (KRW) at a fixed yearly…
A: In a currency swap, the parties agree to exchange cash flows denominated in one currency for those…
Q: AllCity Inc. is financed 40% with debt, 15% with preferred stock, and 45% with common stock. Its…
A: WACC is weighted average cost of capital being incurred in business. This is combined cost of debt,…
Q: Cash flows from a new project are expected to be $4,000, $5,000, and $3,000 over the next 3 years,…
A: Net present value(NPV) of the project is calculated using following equation NPV = -CF0 + CF1/(1+d)1…
Q: For three 6-month American call options on a stock, you are given the following information: (i)…
A: To create an arbitrage, we need to find values of x and y that will result in a risk-free profit.…
Q: On April 17, Year 1, Barry, a CEO for ABC Corporation, is granted 10,000 ISOs at an exercise price…
A: To avoid a disqualifying disposition, the shares from the ISO exercise must be held for at least two…
Q: Which one is right?
A: Several statements have been made about the duration. The correct statement needs to be found out.…
Q: The yield curve for default-free zero-coupon bonds is currently as follows: Maturity (years) YTM…
A: AS per the given information: Maturity (years)YTM111.0%212.0%313.0%
Q: Cash flows from a new project are expected to be $10,000, $40,000, $30,000, $30,000 and $40,000 over…
A: Profitability index(PI) of project is calculated using following equation PI = Present value of…
Q: Calculate the APR of the following investment, entered as a percentage (Example: if your answer is…
A: APR: It represents the rate of return earned by a lender. It takes into consideration the borrowing…
Q: An unlevered corporation BlueSky has a value of $200 million. An identical but levered corporation…
A: A levered corporation refers to a capital structure that is a mixture of debt and equity. And a…
Q: Assume that your client would prefer to invest her entire wealth into a portfolio with an annual…
A: To determine the optimal allocation, y, we need to use the Capital Market Line (CML) equation, which…
Q: 1. Financial institutions in the U.S. economy Suppose Clinton decides to use $3,500 currently held…
A: There are different methods for firms to raise funds from the market. It can be done by selling…
Q: A company is considering leasing a new equipment. The lease lasts for 5 years. The lease calls for 5…
A: After-tax cash flow: It represents a measure of financial performance that indicates the ability of…
Q: A newborn child receives a $4,000 gift toward a college education from her grandparents. How much…
A: The amount that a present investment will gain in value over time when kept in a compound interest…
Q: Suppose that you buy a 2-year maturity bond for $970 that will pay you coupon payments of $60 at the…
A: Real Interest rate is that rate of interest in which inflation effect was not included. It is that…
Q: Jerome borrowed 5200 at 8 1/2% for six years compounded semi annually. What is the future value of…
A: Future value is the value of an investment or cash flow at a future point in time, based on the…
Q: ercent. The annual par
A: and the face value (or the redemption value) Here given that Face value = 1000, coupon %=6%, So…
Q: 1. Your client has been offered the opportunity to invest in a project which will pay $1,000 per…
A:
Q: In comparing an ordinary annuity and an annuity due, which of the following is true? a. The future…
A: Time Value of Money states that a dollar earned today is more valuable than any time in the future,…
Q: A private investment club has $400,000 earmarked for investment in stocks. To arrive at an…
A: Risk analysis is the process of identifying, assessing, and prioritizing risks to better understand…
Q: Create an amortization table in Excel for a new car loan for 30,000 for six years at 5%. Determine…
A: The long-term loan that was obtained from the lender is being repaid in monthly mortgage…
Q: Suppose you are the money manager of a P4.0 investment portfolio consists of stocks with the…
A: Solution : A ) Portfolio Beta = Beta 1 × W1 + Beta 2 × W2 .... Portfolio Beta =(1.50 + ( -0.50)…
Q: Medecins sans Frontieres has issued a bond that gives the holder the option to cash in the principal…
A: Call-put parity is a fundamental principle in options pricing theory. Call-put parity states that…
Q: from
A: The Amount must be find out. Interest Received = A (Amount) - P (Principal) Given P =$10500, A=?, R…
Q: A commercial bank is offering 15( 5)/(12)% interest on time deposits. What is its equivalent decimal…
A: The answer is given below
Q: An annuity with a cash value of $13,500 earns 5% compounded semi-annually. End-of-period semi-annual…
A: We can use the formula for the present value of an annuity to find the payment amount. The formula…
Q: Question 5 - Estimating cash flows For each of the following cash flows, indicate whether it should…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: A company is deciding whether to lease or buy a new truck. The truck can be le for a 5-year period…
A: In case of lease, a series of payments at equal interval is made for using a fixed asset, owned by…
Q: Assuming that a preferred stock has a par value of $75, pays a 10% dividend and you have an 8%…
A: Dividend per share = Dividend rate×Par value = 0.10×$75 = $7.50 Value of preferred stock is…
Q: n arithmetic cash flow gradient series equals $450 in year 1, $550 in year 2, and amounts increasing…
A: Present value When there is a series of future cash flows, 'NPV' function of excel is used to…
Q: Morgan invested 2800 for 6 years compounded semi-annually. If the future value of the investment was…
A: Future value is the value of an investment or cash flow at a future point in time, based on the…
Q: Killer Shark Inc. makes a surprise cash offer of $22 a share for Goldfish Industries. Before the…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: A builder is offering $139,371 loans for his properties at 9 percent for 25 years. Monthly payments…
A: It is a problem that requires the identify the difference in the present value of loan repayment at…
Q: If the value of sustainable investing is $171.1 and the discount rate is 8% while the value of…
A: Expected value will be calculated using formula : Expected Value = Probability of × present…
Q: Accounting Rate of Return on average investment of Project Y (expressed to two decimal places) 2.2…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: It is estimated that there are 35 deaths for every 10 million people who use airplanes. A company…
A: Expected value is the value of a random variable in the long run. It is calculated by multiplying…
Q: Consolidated Industries has a beta of 1.34. Assuming the risk-free rate is 5.75 percent, and the…
A: Given the following: Beta = 1.34 Risk-free rate = 5.75% Return on market = 12.5%
Q: You can buy a $1,000 par value bond for $800. The coupon rate is 10% (with annual payments), and…
A: The value of a bond is the present value of the interest payments and principal repayment that its…
Q: Corral Industries has decided to borrow money by issuing perpetual bonds with a coupon rate of 8.5…
A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…
Q: The present value of a perpetuity paying 11 at the end of every 4 years is 0.82. Find the annual…
A: The calculation of annual effective rate of interest we will consider the calculation of time period…
Q: Kindly define the following - a. Partnership b. Non- Profit Organization c. Corporation d. Sole…
A: The answers to the question are given below
Q: Consider an EAR of 13.75% with quarterly compounding. What is the APR ( annual percentage rate)?
A: Annual percentage rate(APR) is calculated using following equation APR = [1+EAR(1/m) -1]×m Where,…
Q: 3- Mortgage Application Practice Using the table, find the assessed value of the house in this…
A: The assessment of the value of a property is carried out to determine the property’s worth based on…
Q: Chris has decided to create a retirement fund. He will deposit $250 at the end of each month for the…
A: An annuity is a stream of equal cash flows occurring at regular intervals. the future value of an…
Q: A new project will have an intial cost of $50,000. Cash flows from the project are expected to be…
A: Initial cost = cf0 = $50,000 Cash flow for year 1 = cf1 = -$25,000 Cash flow for year 2 = cf2 =…
Q: A bond paying a coupon of 7% is redeemable in five years at nominal value ($100) and is currently…
A: Annual coupon payment on bond = Coupon rate×Par value = 0.07×$100 = $7 Required rate of return on…
Q: The following table contains information about Wal-Mart (WMT) and Nordstrom (JWN). Compute their…
A: According to the DuPont analysis the determinants of return on equity (ROE) are (1) Net profit…
Haatimvopened an RRSP deposit account on December 1, 2008, with a deposit of $1400. He added $1400 on September 1, 2010, and $1400 on March 1, 2012. How much is in his account on April 1, 2016, if the deposit earns 6.3% p.a. compounded monthly?
The amount in the account is?
Step by step
Solved in 3 steps with 2 images
- Randy opened an RRSP deposit account on December 1, 2008, with a deposit of $1800. He added $1800 on December 1, 2010, and $1800 on July 1, 2012. How much is in his account on October 1, 2016, if the deposit earns 5.5% p.a. compounded monthly? The amount in the account is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)You deposit 500 in an account on January 1, 2003. Interest is credited each year on December 31, at a rate of 4% on the first 1000 in the account on January 1 of that year and 5% of any excess over 1000. Just after interest is credited on December 31, 2032, X is in the account. Calculate X.Dave borrowed $550 on January 1, 2022, and paid it all back at once on December 31, 2022. The bank charged him a $3.50 service charge, and interest was $40.70. What was the APR? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Annual percentage rate %
- Suppose that on January 1 you have a balance of $3100 on a credit card whose APR is 17%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1 a. Calculate your monthly payments.b. When the card is paid off, how much will you have paid since January 1?c. What percentage of your total payment from part (b) is interest?K Mahadeus opened an RRSP deposit account on December 1, 2008, with a deposit of $2300. He added $2300 on April 1, 2010, and $2300 on January 1, 2012. How much is in his account on October 1, 2016. if the deposit earns 6.7% pa compounded monthly? (3) The amount in the account is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed) Clear allSuppose that you opened a savings account on January 1st, 2010, and made a deposit of $1000. On January 1st, 2011, you began depositing $100 into the account at the end of each month. If the bank pays 2% interest compounded monthly, how much money will be in the account on January 1st, 2022?
- Suppose that you opened a savings account on January 1st, 2010, and made a deposit of $1000. On January 1st, 2011, you began depositing $100 into the account at the end of each month. If the bank pays 2% interest compounded monthly, how much money will be in the account on January 1st, 2022? Round to two decimal places.On June 3, 2014, Crystal Nelson deposits $8,000 in an account earning 2.5% compounded daily. What will the future value of this account be on December 15, 2025?Suppose on January 1st you deposit $100 in an account that pays a nominal interest rate of 11.33463% with interest added (compounded) daily. How much will you have in your account on October 1st or 9 months later?
- Slim made a single deposit of $5,000 in an account that pays 7.2% in 2012. What equal-sized annual withdrawals can Slim make from the account if the first withdrawal occurs in 2017 and the last occurs in 2022?Suppose that on January 1 you have a balance of $6200 on a credit card whose APR is 18%, which you want to pay off in 1 year. Assume that you make no additional charges to the card after January 1 a. Calculate your monthly payments. b. When the card is paid off, how much will you have paid since January 1? c. What percentage of your total payment from part (b) is interest? C... a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)You deposit $ 7,812 in your account today. You make another deposit at t = 1 of $ 6,946 . How much will there be in your account at the end of year 1 if the interest rate is 11.9 percent p.a.? (Record your answer without a dollar sign, without commas and round your answer to 2 decimal places; that is, record $3,245.847 as 3245.85). Your Answer: