Answered: QUESTION 81 The annual percentage rate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Chapter 5 Question 8
Intro The quoted interest rate is 4.3% (APR with quarterly compounding). Part 1 What is the quarterly rate? 4+ decimals Part 2 What is the effective annual rate (EAR)? 4+ decimals
Problem 5-6 Present Value of an Annuity Due (LG5-6)If the present value of an ordinary, 6-year annuity is $5, 600 and interest rates are 7.5 percent, whats the present value of the same annuity due?Note: Round your percentage answer to 2 decimal places (i. e.. 0.1234 should be entered as 12.34).
ces Problem 6-13 Unbiased Expectations Theory (LG6-7) Suppose we observe the following rates: 1R₁ = 10%, 1R2 = 12%. If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(21)? Note: Do not round intermediate calculations. Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34). Interest rate %
62 > > 63 65 66 68 > > You purchase a certificate of deposit that earns an advertised rate of 1.75% interest per year. What is your real rate of return if the actual inflation rate is 1.9%? 3.65% -0.15% 1.75% 0.15%
QUESTION 8 Given a 3 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,400, $1,600, $1,600, and $1,900, respectively. (Do not round intermediate calculations and round your final answer to 2 decimal places.) FUTURE VALUE?
Question 5 Determine the interest rate in % compounded annually if the compound amount factor is 1.969 for a period of 8 years. Express your answer in 3 decimal places.
13 When interest is calculated for periods shorter than a year, the formula to calculate interest is: Multiple Choice I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = number of months. I = P × R × T, where I = interest calculated, P = principal, R = annual interest rate, and T = (number of months ÷ 12). I = P × R × T, where I = interest calculated, P = principal, R = monthly interest rate, and T = (number of months ÷ 12). I = (MV − P)/T, where I = interest calculated, MV = maturity value, P = principal and T = number of months.
Present Value What is the present value of a $3,200 deposit in year 3 and another $3,700 deposit at the end of year 7 if interest rates are 8 percent? Multiple Choice О $4,026.08 $4,699.18 О $4,783.24 О $3,036.00
Q 23
Question 22 If the annual interest rate is 5%, what is the rate for each quarter? Your answer: O 5% O 1.5% O 1.25% Clear answer Back Next
Question 19 What is the effective semi-annual interest rate of a loan 8.45% quoted annual interest rate compounded monthly? %4.23 4.545% 6.25% 4.3%

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QUESTION 81 The annual percentage rate of interest on terms 4/8, net 28 is 73%. TRUE OR FALSE?