If $13,000 had been invested in a certain investment fund on September 30, 2008, it would have been worth $59,102.69 on September 30, 2018. What interest rate, compounded annually, did this investment earn? (Round your answer to two decimal places.)
Q: The bonds of Generic Labs Inc. have a conversion premium of $60. Their conversion price is $25. The…
A: Conversion Premium = $60 Conversion price = $25 Common Stock price = $21 Let face value = $1000
Q: Mr. Kinders has contributed $189.00 at the end of each month into an RRSP paying 3% per annum…
A: Here, Monthly Contribution is $189 Interest Rate is 3% Compounding Period is Annual i.e 1
Q: If $500 is invested at 16% compounded quarterly, what is the interest earned after: a) 5 years…
A: We need use compound interest formula below to calculate interest earned A = P*(1+i)n where A =…
Q: 17,071.63 nearest cent
A: As per the time value of money concept, individuals prefer to receive a sum of money at the earliest…
Q: Over the coming year, Ragwort's stock price will halve to $75 from its current level of $150 or it…
A: The risk-neutral probability of a stock refers to the probability of each outcome of the price of…
Q: How to evaluate the capital structure of Amazon as well as its riskiness?
A: Capital structure are important tool in the decision makings.The mix of debt and equity financing…
Q: Louise plans to save $3,000 a year every year for 10 years, beginning next year, and then stop. Thi…
A: Future value refers to the value of a current asset at some future date affected by interest rates,…
Q: 1. Greta wants to go on a vacation around the world in 4 years. If she puts $50 into an account each…
A: Here, Weekly Deposit (PMT) is $50 Time Period in Years is 4 years Time Period in weeks (n) is…
Q: CleanClothes Corp. growing quickly. Dividends are expected to grow at a 19 percent rate for the next…
A: The dividend growth model is a method of evaluating a company's stock that does not take into…
Q: Kim, Khloe, and Kendall started their own fashion company that is worth $5 million. Kim has 60%…
A: Disability buyout insurance, also known as disability buy-sell insurance or disability business…
Q: Banker’s Acceptances allow corporations in different countries to trade with each other because they…
A: The YTM is the rate of return an investor would experience if they kept the bond till maturity and…
Q: 35- Based on the information in the table, which stock has the greatest systematic risk?…
A: According to bartleby guidelines, if multiple questions are asked, then 1st question needs to be…
Q: Fannie Mae and Freddie Mac play an important role in the mortgage market. True False The…
A: The market for loans used to purchase or refinance real estate is referred to as the mortgage…
Q: The stock of Pills Berry Company is currently selling at $60 per share. The firm pays a dividend of…
A: Stocks in the capital market offer return in two ways. The first way is offering dividends on a…
Q: ABC Corporation has the following capital items and $200,000 in retained earnings too, and an income…
A: The weighted average cost of capital refers to the average rate that is required to pay for…
Q: using the ordinary interest method, find the amount of interest on a loan of $5,000 at 10 1/2%…
A: Loan amount = $5,000 Period of loan = 274 days Interest rate = 10 1/2%
Q: 1-Bahama Resort bonds pay 5.65 percent coupon bonds semiannually. Its yield to maturity of 6.94…
A: Note). As per guidelines we are allowed to answer only first question if the questions asked are…
Q: The shares of the Dyer Drilling Co. sell for $50. The firm has a P/E ratio of 10. Eighty percent of…
A: The calculation of dividend yield involved the variable of dividend and the total price of the…
Q: How much would you need to be deposited into savings account today earning 3.5% compounded annually…
A: The quantum of funds that will lead to a perpetuity of $ 100 a year, needs to be determined.
Q: A debt of $5643.07 is repaid by payments of $1232.89 in 7 months, $1454.55 in 14 months, and a final…
A: Data given: Debt=$5643.07 Payment details: $1232.89 in 7 months $1454.55 in 14 months Final payment…
Q: An investment pays simple interest, and triples in 14 years. What is the interest rate?
A: The sum of money that is charged or gained for the usage of money is known as interest, and it is…
Q: A business loan for $400,000 carries an interest rate of 12% compounded monthly. Suppose that the…
A: A business loan is a type of financial aid that can assist you in covering both anticipated and…
Q: Lululemon needs to raise $115 million and wants to issue 20-year zero-coupon bonds for this purpose.…
A: Amount need to be raise = $115 million Time = t = 20 years Required rate of return = r = 5.4% Face…
Q: Calculate the pre-tax cost of debt for a company that sold 10-year 8% bonds 3 years ago if they are…
A: Pre tax cost of debt has to be found. The debt is in the form of a bond. So, the yield to maturity,…
Q: Calculate the APR of a loan for $9,875, including loan fees of $250, at 11.5% for 4 years. (Do not…
A: Data given: Loan amount=$9875 Rate=11.5% nper=4 Required: APR
Q: You wrote a call option on the stock of PIGN at a strike price was $55.55. The premium you received…
A: Position of call option writer is exactly opposite of call option holder. Seller will receive option…
Q: What are the nominal and effective costs of trade credit under the credit terms of 2/20, net 35?…
A: Credit terms specify the rate of discount a business can obtain when full payment is made within the…
Q: Using the set EBIT CapEx Depreciation Increased working capital Shares outstanding Tax rate WACC…
A: With WACC, constant growth rate (g) and End year value (V), the terminal value is calculated as…
Q: A $98,000 mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.5%…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Four boys, Paul, lan, Asher and Cody saved some money. lan's savings was of the total savings of…
A: Let the savings be as follows Ian = I Paul= P Asher= A Cody= C Ian’s savings=I= $160
Q: The figure below shows graphs of the fixed cost function, total cost function and the total revenue…
A: The total revenue, total cost and the fixed cost functions have been plotted on a graph. The…
Q: An equipment has a fire cost of P140,000 and has a salvage value of P12,000 after 12 years.…
A: Depreciation means reduction in value of asset over asset's life. Under straight line depreciation,…
Q: Four boys, Carl, Peter, Elijah and Ryan saved some money. Peter's savings was of the total savings…
A: Savings are that portion of Income that is not spent. It can be invested to earn future income.
Q: B2b Co. Is considering the purchase of equipment that would allow the company to add a new product…
A: Select financials about a capital project have been provided. Annual net cash flow, payback period…
Q: G i v e a r e a s o n s f o r t h e c h a n g e s i n a c h i e v i n g s h o r t…
A: The variations in accomplishing short- and long-term financial goals can be linked to a number of…
Q: Compare long-term instruments and short-term risks, in terms of the various types of risk to which…
A: Risk Is said to be the uncertainty or the deviation from the actual so this is that part of the…
Q: None of these came as correct on my hoemwork I need a.) Net cash flow b.) incremental cash flow…
A: NPV shows the amount of value generated by the project and is represented in absolute profitability…
Q: Citigroup SmithBarney (Reais). In a report dated June 17, 2003, Citigroup SmithBarney calculated a…
A: Risk free rate = 9.90% Beta = 1.40 Market risk premium = 5.50% As per CAPM, the cost of equity…
Q: An at the money European call option has 3 months until expiration and a strike of $60. You believe…
A: Data given: S=Spot price=$60 K=Strike price=$60 n=3 months Upper limit=$70 Lower limit=$50 Risk free…
Q: You have decided to buy a car that costs $31,000. Since you do not have a big down payment, the…
A: We need to use loan amortisation formula to calculate monthly payment of loan PMT =…
Q: The price for a bike after two successive discounts of 28% and 13% is $234.90. 1. What is the single…
A: The Single Equivalent Rate of Discount (SERD), which is expressed as a percentage, is the sum of all…
Q: An oil company executive is considering investing $11.1 million in one or both of two wells: well 1…
A: Net present value (NPV) is the value of all the cash flow of the investment (positive and negative)…
Q: TD Canada Trust issued a loan of $96,000 at 7.76% compounded semi-annually. The loan was repaid by…
A: Periodic payment refers to an amount being paid at each period for the repayment of loan amount by…
Q: There is a bond with a coupon of 7.4 percent, six years to maturity, and a current price of…
A: DV01 (dollar value of 01 basis point) is a measure used in finance to calculate the price…
Q: The Cartton Corporation has $4 million in eamings after taxes and 1 million shares outstanding. The…
A: According to bartleby guidelines, if question involves multiple sub parts , then 1st sub 3 parts…
Q: Prisha worked in accounting for a large, publicly traded manufacturing company. Last year, she…
A: A whistleblower is a person who exposes wrongdoing or illegal activity within an organization or…
Q: Marco has become charitably inclined since suffering serious health issues. He wants to establish a…
A: Charitable trusts are legal instruments that allow individuals to make charitable gifts while…
Q: The Potters want to buy a small cottage costing $120,000 with annual insurance and taxes of $740 and…
A: Mortgages are a sort of loan that can be used to buy or keep up a house, land, or another piece of…
Q: Evaluate the NPV for a green building with the following cost and savings data. Use a discount rate…
A: The NPV of your cash flows over a specific time frame is the difference between the present values…
Q: You are analyzing the cost of debt for a firm. You know that the firm’s 14-year maturity, 8.6…
A: The cost of debt is the return that the company provides on average to all its debt holders. It…
If $13,000 had been invested in a certain investment fund on September 30, 2008, it would have been worth $59,102.69 on September 30, 2018. What interest rate, compounded annually, did this investment earn? (Round your answer to two decimal places.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- Suppose an investment will pay $7,000 in 44 years from now. If you can earn 6.15% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choicesWhat is the present value of a perpetuity of $8,447 per year given an interest rate of 8.2%, assuming that the first cash flow occurs today (that is, in year 0)? Record your answer as a dollar amount rounded to 2 decimal places , but do not include a dollar sign or any commas in your answer . For example , enter $ 12,327.24987 as 12327.25 .Suppose an investment will pay $21,000 in 19 years from now. If you can earn 16.35% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72.
- An investment will pay you $4,611.9 in 3 years if you pay $1,376.68 today. What is the implied rate of return? (Convert to a percent. Round to 2 decimal places.)Assume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.Suppose an investment will pay $11,000 in 41 years from now. If you can earn 14.55% interest compounded monthly by depositing your money in a bank, how much should you pay for the investment today?Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. A. $31.59 B. $31.30 C. $26.04 D. $25.74 E. $29.25
- An investment will pay $19,691 in 19 years. If the interest rate is 12.24%, how much is it worth today? (Round to 2 decimal places.)Future Value of an Investment Using the future value tables, solve the following. (Click here to access the time value of money tables to use with this problem.) Round your answers to two decimal places. Required: 1. What is the future value on December 31, 2020, of a deposit of $35,000 made on January 1, 2017, assuming interest of 10% compounded annually? 2. What is the future value on December 31, 2020, of a deposit of $10,000 made on January 1, 2017, assuming interest of 16% compounded quarterly? 3. What is the future value on December 31, 2020, of a deposit of $25,000 made on January 1, 2017, assuming interest of 12% compounded semiannually? $Suppose your uncle invested $113,000 in an investment 4 years ago. The investment is worth now $237,500. The annual interest rate (rate of return) on the investment during this period must be % per year. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))
- Suppose you are going to invest $11,000 per year for six years. The appropriate interest rate is 9 percent. What is the future value if the payments are made on the last day of the year? What if the payments are made on the first day of the year? a) $82,756.68; $90,204.78 b) $90,204.78; $82,756.68 c) $49,345.10; $53,786.16 d) $53,786.16; $49,345.10What would be the future value of $7,992 invested annually for nine years beginning one year from now if the annual interest rate is 10 percent? (Round answer to 2 decimal places, e.g., 1,220.25.) Future value . . $If you invest $13,276.21 and want to receive $82,006.97 at the end of 31 years, at what APR must you invest? Enter your answer as percentage with two decimal places but without the percent symbol. For example, if your answer is 90.1234%, enter 90.12