How much of a $50,000 account should a broker invest at 8 percent and how much at 12 percent to 9.5 percent yearly rate of return?

Q: our business requests a 3-month loan for $500,000. What will be the interest paid at the end of the…

A: LIBOR stands for London Interbank Offered Rate. It is the benchmark rate at which all major global…

Q: How long would it take for your money to double if it's invested in an account with quarterly…

A: Here,ParticularsValuesPresent value (PV) $ 100.00Future value (FV) $ 200.00Interest rate9.50%Number…

Q: Assuming you bought a 182-day Treasury Bill with a face value Ghc 20,000.00 and held it for 45days.…

A: Purchase price = Face value/(1+interest rate*days to maturity/360) Accrued interest = Purchase…

Q: Which would you prefer, $650 today or $650 in one year? Does your answer depend on when you need the…

A: a. Having $200 today is equivalent to having 650 × 1.036 = $673.4 in one year. future value =…

Q: What would be the annual percentage yield for a savings account that earned $60.00 in interest on…

A: Annual Precentage Yield = (Annual interest / Principal amount ) x 100Note : 365 days = 1 year

Q: If you invest at 1.59% APY, how many years will it take to turn $1 into $9?

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: If there is a deflation rate of 2% and your account is earning a nominal interest rate of 1.75%,…

A: Deflation rate (d) = 2% Nominal interest rate (r) = 1.75%

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A: Due to inflation prices increase but if the interest rate do not increase in the proportion than…

Q: If you have this offer "you will invest $200 per month for the first 45- months, where the first…

A: Internal rate of return is the exact returns that will be received from an investment. it Is…

Q: What is the present value of $1,200 due in 14 years at a 5 percent interest rate and 11 percent…

A: The PV of an investment is based on the concept of the Time Value of Money which states that money…

Q: What’s the present value of a perpetuity that pays $1500 per year if the appropriate  interest rate…

A: Cash flow per year is $1500 The interest rate is 15% To Find: the present value of a perpetuity

Q: In calculating insurance premiums, the actuarially fair insurance premium is the premium that…

A: Insurance premium refers to the premium paid by the insurer to the insurance company for the purpose…

Q: Assuming interest rates are at 6%, what is the fair value of this offer?

A: Fair value or present value can be calculated using the present value concept.  1. Find the value of…

Q: What amount today

A: Step 1: Given Value for Calculation Future Value = fv = $100Time = t = 1 YearsOpportunity Cost = r =…

Q: According to the CAPM, the correlation coefficient between a perfectly diversified portfolio and the…

A: A portfolio is a group of investments in which an investor has invested funds or money. A portfolio…

Q: Your firm is considering two​ one-year loan options for a $506,000 loan. The first carries fees of…

A: A loan is an agreement where a party forwards a sum to another party in return for that sum being…

Q: Imagine you borrow $600 from your roommate, agreeing to pay her back $600 plus 7 percent nominal…

A: Fisher Equation defines the relationship between the real rate of interest and the nominal rate of…

Q: Consider an investment which pays 1.05 times your original payment (which is not returned) after two…

A: The return on any investment is given by  R = (F - P)/P  * 12/n Where P = value invested F = value…

Q: Your bank is offering a term deposit that will earn investors an EAR of 10.70%. Your manager asks…

A: EAR stands for the effective annual rate. It is the rate which takes into consideration the impact…

Q: A borrower gets a $75,000, 25 year, 13% loan with 4 points.  What is the true interest rate?

A: Given Information: Loan amount is $75,000 Number of years is 25 Interest rate is 13% 4 points on…

Q: Which do you​ prefer: a bank account that pays 9% per year​ (EAR) for three years or a. An account…

A: Future value refers to the value of the current asset at some future date due to inflation,…

Q: if a bank has 100Mn loan, 200Mn deposit, 10Mn capital and 100Mn investment in Government bond, the…

A: Bank's Balance SheetAssets:Loans: $100 millionInvestments (Government Bonds): $100 million(Since the…

Q: The Maybe Pay Life Insurance Company is trying to sell you an investment policy that will pay you…

A: Payment = p = $36,000Required Rate of Return = r = 5.8%Time = Forever

Q: What is the present value of RM9,070 to be received 5 years from today if the discount rate is 16…

A: Using the PV function in excel

Q: What is the future value of a $12,500 investment, earning eight-percent interest per period, after…

A: Given details are : Present value of investment = $12500 Interest rate = 8% Time period = 3 years…

Q: What is the present value of RM4,500 to be received 10 years from today if the discount rate is 6…

A: Using PV function in excel

Q: A: How long will it take for money to triple when invested at 7.2% compounded monthly? B: How long…

A: Data given: A: rate=7.2% compounded monthly B: rate=7.2% monthly rate

Q: If you want to earn 7% annual simple interest on an investment, how much should you pay for a note…

A: Simple interest is the type of interest that is calculated on the original amount, It is calculated…

Q: What is the most you would be willing to pay for an annuity that provides you with $13,700 at the…

A: Here,Annuity Received  (PMT) is $13,700Interest Rate (r) is 5.5%Time Period (n) is 3 years

Q: If a bank was offering a nominal rate of return of 12% compounded monthly, what is the annual…

A: Formula: Annual effective rate = ( 1 + r / N )N - 1 R = rate of return N = Period

Q: A person invests Rs 2,00,000 at 6% Rs 50000 at 7% and 25000 at 8% . What is the average return on…

A: Return on Investment: It measures and evaluates the profitability of any investment made by a firm.

Q: Future Value. How much will you have in 24 months if you invest $71 a month at 6% annual interest?

A: This question require us to calculate the Future Value using financial calculator from the following…

Q: A broker wants to sell a customer an investment costing $100 with an expected payoff in one year of…

A: Investment cost = $100Expected payoff = $106Borrowings = $90Interest on loan = 4%To find: Customer's…

Q: Calculate the DTI ratio (as a percent) for a borrower who has a gross monthly income of $5,330 and…

A: DTI ratio compares a person's or a household's total debt payments to their gross income. This is…

Q: 12. If a financial contract promises you to pay $110 next year and $121 the year after that, and if…

A: Year 0 cash flow = -$200 (i.e you pay $200 now)Year 1 cash flow = $110Year 2 cash flow = $121

Q: Suppose that you want to take out a loan and that your local bank wants to charge you an annual real…

A: Compute the nominal interest rate: Nominal interest rate is calculated by using following formula:

Q: How long will it take for a lender to discount ₱75,000 by 11.45% in order to gain ₱10,500 as his…

A: Simple interest is simple interest without compounding of interest and in discount we use the simple…

Q: Calculating Rates of Return Suppose an investment offers to quadruple your money in 12 months (don’t…

A: The time value of money is a fundamental idea in finance that states that money received today is…

Q: what is present value of perpetuity if annual coupon is $1,000 and discount rate is 10%

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: Your client is invested in a registered indexed-linked annuity (RILA). The RILA contains a 7% floor,…

A: Year 1:The S&P 500 return is 12%.The cap rate is 10%, so the credited interest rate is capped at…

Q: What long will it take a $100 investment to double to $200 if the interest rate is 6%?

A: As per the concept of time value of money the worth of money changes with passage of time as money…

Q: How low will take for a deposit of P3,105,000 to earn P515,750 if invested at the rate of 15 1/4%?

A: The future value of the annuity is the future worth of a cash flow series at a certain rate of…

Q: An investment will pay $100 at the end of each of the next 3 yrs, $200 at the end of yr 4, $300 at…

A: Given information: Cash inflow for next three years is $100 Cash flow for year 4 is $200 Cash flow…

Q: If you were given a choice of investing in an account that paid quarterly interest and one that paid…

A: Effective annual rate is the actual rate an investment generates after taking all the compounding…

Q: j. Find the PV and the FV of an investment that makes the following end-of-year payments. The…

A: Information provided: Interest rate = 10% Year 1 Payment = $100 Year 2 Payment = $300 Year 3…