If Penny bought a stock for $80 dollars and could sell it 15 years later for 4 times what she originally paid, what is Penny’s return on owning this stock? (Enter your answer as a whole percentage (e.g. .35 should be entered as 35).

Q: Suzie is 20 and want to retire at the age of 50. If she invests a $100,000 inheritance at 8.4%…

A: The amount at the end of 50 years can be calculated with the help of future value function.

Q: The Total Return on an investment is the relative change in the investment value: Ending…

A: Total Return=Final Value-Initial ValueInitial ValueTotal Return=12500-1600016000=-0.21875

Q: If Maria wants to be a millionaire ($1,000,000) by the time she retires (45 years from now), how…

A: Future value (FV) = $1,000,000 Interest rate = 8% Semi annual interest rate (r) = 8%/2 = 4% Period =…

Q: Suppose Julie's salary went from $35,000 to $150,000 in 12 years. a. Assuming she got the same…

A: given, pv = $35000 fv=$150,000 n =12

Q: Abby purchased 100 shares of her dad’s favorite stock for $25.80 per share exactly 1 year ago,…

A: Computation of total amount will receive in next year: Answer: The total amount that Abby will…

Q: You have decided that you want to be a millionaire when you retire in 45 years.   a. If you can…

A: Present Value(PV) is value of a future amount at current point of time. It is done by discounting…

Q: James and Terry buy 100 shares of Verizon Stock. Over the last twenty years the stock has increased…

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

Q: Isabella started saving for her retirement 15 years ago. If she invested $30,000 in a stock fund…

A: Time value of money states that the value of money depreciates over time due to certain factors like…

Q: For her 1st birthday, Ruth's grandparents invested $1400 in an 18-year certificate for her that pays…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: Hayley recently invested $31,000 in a public utility stock paying a 6 percent annual dividend.…

A: Qualified Dividend: Generally speaking, qualified dividends are dividends received from shares of…

Q: Suppose you inherited $935,000 and invested it at 8.25% per year. How much could you withdraw at the…

A: Annuity refers to an amount or stream of equal cash flows (CF) paid or received periodically.…

Q: Brooke invested $4,500 in the stock market with the expectation of earning 6.25 percent.She actually…

A: Given, Actual Return earned = 7.15% Expected Return = 6.25%

Q: Jennifer has just finished high school and is deciding whether to start working or go to college.…

A:

Q: 20 years old and inherit $60,000 from your grandmother. If you wish to purchase a $88,150 boat to…

A: In this question, following parameters are given: n- number of periods PV- present value FV- future…

Q: rate

A: Formula for rate of return: Rate of return = Ending value of investment - Beginning value of…

Q: Sarah Wiggum would like to make a single investment and have ​$2.0million at the time of her…

A: Amount required in 35 years or future value (FV) = $2,000,000 Period (p) = 35 years Rate of return…

Q: Carmen Santiago decided to invest $12,000 in shares of the AT&T company that pays her 5% in…

A: Internal rate of return (IRR) is a value at which PV of inflows is equal to the PV of outflows, or…

Q: Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money…

A: Amount invested to earn return is known as investment. Investment offers two types of return. One is…

Q: Abby purchased 100 shares of her father’s favorite stock for $27 per share exactly 1 year ago,…

A: Reinvestment is a process of using the earned income on previous holdings in a new investment in…

Q: If Penny bought a stock for $80 dollars and could sell it 15 years later for 4 times what she…

A: Given: Purchase price = $80 --------------------- Sale value = Purchase price * Increased Sale value…

Q: Tao would like to purchase a stock priced at $80. The stock is not expected to pay any dividends in…

A: Return on stock is the ratio between the net capital gain and the amount invested. Net capital gain…

Q: One year ago, Richard purchased 40 shares of common stock for $10 per share. During the year, he…

A: In two ways investors can earn returns from the stock , dividend capital gains capital gains are…

Q: Conrado bought 100 shares of a stock for P50,840.00. A year later, he sold the stock for P490.20 a…

A: Time Deposit Maturity Value = Initial Investment x (1+i) Stock Investment Net Sale Value = Sale…

Q: You are 20 years old and inherit $70,000 from your grandmother. If you wish to purchase a $112,400…

A: Calculate the rate as follows: Rate = (Future value/Present value)^(1/years) -1   Number of years =…

Q: Hannah wants to have $ 1500 to help pay for a new deck in 10 years. If she wants to put her money…

A: Time has been valuable in all aspects but in terms of finance, time has a money value. The worth of…

Q: Imagine that Homer Simpson actually invested the ​$160,000 he earned providing Mr. Burns…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: Evelyn pays $5,000 for shares in a new company. She sells the shares 10 years later for $19,500.…

A: Future Value = Present Value * (1+rate)^ years

Q: How much money are Dean's investments worth at the end of 41 years?

A: Future Value of Annuity: It shows the worth of the payments made periodically over a certain point…

Q: Abby purchased 100 shares of her father’s favorite stock for $27 per share exactly 1 year ago,…

A: Return on investment shows the return or earnings on the investment. The return on investment is the…

Q: Lenda earns P720,000.00 annually and is able to place 1/3 of this in savings. If she uses 50% of her…

A: Annual earnings = 720000 Savings = 1/3 of Annual Earnings Investment in stocks = 50% of Savings

Q: Jane has been given an opportunity to receive 20,000, six years from now. If she can earn 10% on her…

A: Present value is the current value of a future cash flow discounted to the present terms at a…

Q: Tara invests $3000 today and another $1,500 a year from now until 5 years. She stops investing from…

A: Calculation of Future worth of Investment 5 years from now Future value = ($ 3,000 X Future value…

Q: An engineer planning for her retirement will deposit 10% of her salary each year into a stock found.…

A: Solution- Year 0 =20000 Year 1 =12000 Salery to increase at 5% so her saving will increase by 5% for…

Q: Justine is thinking about purchasing an investment from RCBC Capital. If she buys the investment,…

A: The present value of an annuity due is the current worth of a cash flow occurring at the begging of…

Q: Claire Gerber wants to buy 100 shares of Google, which is selling in the market for $548.66 a share.…

A: Margin is amount we deposit with the broker for buying securities

Q: Carmen Santiago decided to invest $12,000 in shares of the AT&T company that pays her 5% in…

A: Here, Investment Amount is $12,000 Dividend is 5% each ear Value after 5 years is 1% increase in the…

Q: s to buy the stock on margin by borrowing 40% of the total investment from her broker, How many…

A: In this we need to calculate the margin required and than calculate the number of shares can buy.

Q: Justine is thinking about purchasing an investment from RCBC Capital. If she buys the investment,…

A: present value of annuity=A×1-11+RMM×NRM A=ANNUITY R=RATE OF INTEREST M=FREQUENCY OF COMPOUNDING…

Q: After graduating from Baruch, Amal plans on investing $8,000 every year beginning age 25 to…

A: Note: assuming payments are made at the end of age 25 till end of age 64 then value at the beginnig…

Q: Garth has $50,000 to invest for retirement, how much money will he have after 20 years if he buys a…

A: Calculation of amounted needed in future: Answer: Amount needed after 20 years is $246,340.14

Q: A grandfather is giving two options to his grandson either take an investment of $100,000 today and…

A: Future value = present value * (1+r)^n Where, r= rate of interest i.e. 12% or 0.12 n= no. of…

Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of…

A: As per the question, the initial cost of investment was $ 25000Kathy expects a 13% rate of return on…

Q: Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate…

A: The investors try to earn profits by investing in a company. The investors main confusion will be…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.