Suppose you invest $5,000 into a mutual fund that is expected to earn a rate of return of 7%. The amount of money you will have in 10 years is closest to which of the following? The amount you will have in 25Lyears is closest to which of the fóllowing? O 1) $53,500; $802,500 O 2) $2,552.56; $3,257.79 3) $9,835.76; $27,137.16 O 4) $3,138; $ 1,311,892 O 5) None of the answers are correct
Q: For any given interest rate and compounded frequency, there is always an equivalent compounded rate.
A: Effective annual compounding rate can be calculated for any given interest rate or compounding frequ...
Q: If the support and resistance levels of a stock are $15.15 and $15.60 and there has not been a break...
A: The support level refers to the lowest level of the stock price that it has not broken in a long tim...
Q: MC Corporation’s current free cash flow is $400,000 and is expected to grow at a constant rate of 5%...
A: Data given: Free cash flow (FCF) = $400,000 Expected growth at a constant rate (g)= 5% WACC= 12% ...
Q: An annuity-immediate has 3 annual payments of $200, followed by a perpetuity of $300 starting in the...
A:
Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...
A: Present value(PV) is Php3,500,000 Future value(FV) is 3,500,000 Time Period is 13 years Compounding ...
Q: What are some market conditions that may favor companies listed in the S&P 500 communication sector?
A: Communication sector : Communication sector mainly comprises from media to internet companies. This...
Q: Consider the following schedule: (Same Schedule as problem 8, repeated again here) number of years· ...
A: N = 10 Interest rate = 6% Annual Withdrawal = 500 Deposit at year 1 = 10,000 Deposit at year 5 = 15,...
Q: Sungsam Electronics has to choose between two investment options Each alternative involves an initia...
A: Initial Investment = 100,000 Cash Flows: Year Cash Flow - A Cash Flow - B 0 -100,000 -100,000 ...
Q: A margin account requires an initial margin of 50% and a margin call will occur if the stock price d...
A: Initial price = $20 Margin call price = $13.33 Initial margin = 50% Let the maintenance margin = x
Q: 2. I) Identify the concept of an optimal capital structure for a business firm. II) Analyse TWO (...
A: The question is based on the concept of capacity to the borrowing of a firm based on the concept of ...
Q: Southern Tours is considering acquiring Holiday Vacations. Management believes Holiday Vacations can...
A: maximum Southern Tours should pay today to acquire Holiday Vacations = present value of future cash ...
Q: For items 1-10, refer to the following: The owner of Dawn Winery decided to lend kegs of wine amount...
A: Loan is a value which is borrowed from third party like banks for a certain period and this amount i...
Q: Please view the following video before answering this question. Video Solution: 03.03-PROO4 Click he...
A: Data given: Par value = $10,000 Coupon rate =8% p.a. (payable quarterly) n=3 years Period = 3*4 = 12...
Q: In 1975, interest rates were 7.83% and the rate of inflation was 12.42% in the United States. What ...
A: The real interest rate is the actual interest that a lender receives after it has been adjusted for ...
Q: B) WWE CORP. needs to replace an old machine with a new, more efficient model. The new machine bein...
A: In the computation of NPV of such proposal, we should consider the annual cash flow post-tax and sho...
Q: A man borrowed P12,000 and agreed to repay it with P4,650.70 interest. If the interest is 6% compoun...
A: Borrowed amount (PV) = P12000 Interest amount = P4650.70 Future value (FV) = 12000+4650.70 = P16650....
Q: You need a new car and the dealer has offered you a price of $20,000, with the following payment o...
A: The net present value is a method of discounting cash flows and adding them to find the value of the...
Q: How will a decrease in time preferences affect the loanable funds market? A. There will be an...
A: Decrease in time preferences tells us that individuals in the economy are more patient and more incl...
Q: 15. Scarlet Knight Corporation's bonds have a face value of $1.000 anda 9% coupon paid semiannually:...
A: The current yield of the bond is the Annual return paid by the bond divided by its current market pr...
Q: You have just received a bonus of $10,000 and are looking to deposit the money in a bank account for...
A: Value after a period can be calculated as: = Principal * (1 + Periodic Interest rate)^number of conv...
Q: Your firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000; ...
A: For the purpose of computing the cash flow from operations: 1. Any non-cash income or expense needs ...
Q: Walgreen Company (NYSE: WAG) is currently trading at $48.75 on the NYSE. Walgreen Company is also l...
A: Arbitrage is the simultaneous buying and selling of securities at different markets, at different pr...
Q: November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares outsta...
A: market capitalization = Number of shares outstanding × Market price per share
Q: Only two zero bonds are traded. Both zero bonds are repaid at their face value of 100 EUR. The one-y...
A: Par value of bond is EUR 100 One year Zero bond trading at a price of EUR 97.09 Forward rate for tw...
Q: A solar lighting system is to be purchased and installed for 310,000. This system will save approxim...
A: The present worth of a project is the net value added by undertaking a certain project. This is comp...
Q: Candy Company had sales of $320,000 and cost of goods sold of $112,000. What is the gross profit mar...
A: Gross profit margin helps in assessing how much the company has after paying all the costs which are...
Q: What is the indicated value of the subject property using direct capitalization, rounded to the near...
A: Direct Capitalization Method: This method computes the value by dividing the net operating income re...
Q: The board of directors of SSS Inc., have declared a dividend of P18,000,000. The company has 40,000 ...
A: Dividend declared = 18,000,000 Number of preferred shares = 40,000 Dividend per preference share = 6...
Q: Scenario Analysis and Portfolio Risk. The common stock of Leaning Tower of Pita Inc., a restaurant c...
A: Scenario analysis-It is a process of analyzing all possible events that could happen in the future ...
Q: Juancho is required to pay P1,800 at the beginning of each quarter for the next 3 years for his loan...
A: Due to compounding the interest on the increase with increase in compounding. So effective rate is m...
Q: Mountain Peaks applies overhead on the basis of machine hours and reports the following information:...
A: Since you have posted a question with more than three sub-parts, we will solve the first three for y...
Q: An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%, ...
A: Monthly payment (M) = $890 n = 9 years = 108 months r = 8.13% per annum = 0.6775% per month
Q: Mr. Bienvenido Bautista needs a fund of Php1,000,000 to renovate his house. To provide for this, he ...
A: Future value required (FV) = Php1,000,000 Interest rate = 12% Monthly interest rate (r) = 12%/12 = 1...
Q: a. Calculate Big Door's WACC. (Round your answer to 2 decimal places.) WACC b. Calculate Big Door's ...
A: WACC: Weighted Average Cost of Capital represents the firm's total cost of capital. It is computed b...
Q: You won a lottery of $1,000,000. Office offered two options: the first one you can take it today a ...
A: The series of equal payment which is made over indefinite period of time is called as perpetuity. Th...
Q: Figure 1.1 | Seller Net Worksheet Vorksheet Seller Net Worksheet Using the information provided, com...
A: As per the information provided : Seller Net Worksheet Various Issues to consider
Q: QUESTION: 2. What is the fair value for a six-month European call option with a strike price of $135...
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for...
Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...
A: The nominal rate of investment can be found using the RATE function in excel. RATE = (NPER, PMT, PV,...
Q: In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 91.33 million shares out...
A: Price per share = $39.20 Number of shares = 91.33 million Market value of equity = Price*Number of s...
Q: Year 1 Year 2 Year 3 Year 4 Year 5 $100,000 $20,000 $330,000 $450,000 $750,000 The CFO of the compan...
A: Calculate the present value of the cash flows of $100,000, $20,000, $330,000, $450,000 & $750,00...
Q: Mr. Darden is selling his house for $200,000. He bought it for $164,000 ten years ago. What is the a...
A: The annual rate reflects the rate by which the investment increases each year. This is also known as...
Q: Elgin Battery Manufacturers had sales of $1,000,000 in 2015 and their cost of goods sold is $700,000...
A: Income taxes is the amount of taxes and obligations which needs to be paid by the individual or busi...
Q: You are offered an investment opportunity in which you will receive $25,000 in one year in exchange ...
A: Given Information : Amount to be paid today = $23,750 Cash flow received in 1 year = $25,000 Annual...
Q: Find the compound interest if $2000 is invested for 12 years at 8% compounded quarterly. $3036 $1920...
A: Compound interest is the amount of interest which is charged or received on the principal or interes...
Q: Suppose you have three personal loans outstanding to your friend Elizabeth. A payment of $1,000 is d...
A: Payment Due today is $1,000 Payment Due one year from now is $500 Payment Due two year from now is $...
Q: At 6% simple discount, find the present value of $300 which is due at the end of 90 days. What is th...
A: Discount rate (d) = 6% Amount (P) = $300 n = 90 days
Q: Assume the ASX 200 forward earnings yield is 6 percent and the 10-year T-note yield is 5.6 percent. ...
A: Forward earnings yield = 6% 10 year Treasury note yield = 5.6%
Q: e of the investment, knowing that inflation is 3% cumulative annually and that the required profitab...
A: The internal rate of return (IRR) is a financial metric for determining the profitability of potenti...
Q: If your goal is to determine how effective a firm in managing its assets, you would examine O Profit...
A: If the goal is to determine firms effectiveness in managing assets, asset management ratios should b...
Q: Find the amount of an ordinary annuity of Php18,450 payable quarterly for 3.5 years at 12% compounde...
A: Answer - The future value annuity formula calculates the value at the end of given period i.e. n ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- 3. If you invest P5,000 in a mutual fund with a total annual return (interest rate) of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a.P3,402.92b.P6,597.08c.P7,000.00d.P7,346.64May I ask for an explanation and solution to the question for a better understanding. Thank you! 3. If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a. P3,402.92 b. P7,346.64 c. P4,629.63 d. P5,400.00If you invest P5,000 in a mutual fund extending a total annual return of 8% and you re-invest the proceeds each year, what will be the value of your investment after five years? a. P3,402.92 b. P7,346.64 c. P4,629.63 d. P5,400.00
- What would be your future account value if you invested $175 each month into a growth mutual fund for 20 years? Assume an average annual rate of return of 13 percent. O $212,675.99 O $246,485.08 O $186,476.36 O $198,317.41Suppose that you initially invested $10,000 in the Stivers mutual fund and $5,000 in theTrippi mutual fund. The value of each investment at the end of each subsequent year isprovided in the table:Year Stivers ($) Trippi ($)1 11,000 5,6002 12,000 6,3003 13,000 6,9004 14,000 7,6005 15,000 8,5006 16,000 9,2007 17,000 9,9008 18,000 10,600Which of the two mutual funds performed better over this time period?You decide to contribute to a mutual fund that averages 3.6% return per year. If you contribute $600 quarterly. Round all answers to the nearest cent as needed. a) How much will be in the account after 20 years? $ b) How much of this money did you deposit? $ c) How much of this money is interest earned? $ Submit Question Question 3
- You deposit the following at the end of each year into a growth mutualfund that earns 11 percent per year:Year Deposit ($)1 4,0002 3,5003 2,5004 2,0005 1,700 ======== $13,700a. How much should the fund be worth at the end of 5 years?b. How much interest have you earned in total?Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Mean annual return (to 3 decimals) % Year Year 1 $10,700 Year 2 $11,900 Year 3 $12,900 Year 4 $13,900 Year 5 $15,000 Year 6 $16,000 Year 7 $17,100 Year 8 $18,100 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi % Stivers Trippi $5,600 $6,400 $7,000 $7,600 $8,600 $9,300 $9,900 $10,700Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Year Stivers Trippi Mean annual return (to 3 decimals) Which mutual fund performed better? $15,000 $16,100 $17,000 $18,000 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi The Trippi mutual fund V ✔ 7.847 % 9.977 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 % $10,500 $11,900 $12,900 $13,900 Hint(s) $5,700 $6,300 $7,000 $7,600 $8,600 $9,200 $9,900 $10,600 Check
- You invest $1000 dollars in a mutual fund with a 2% front-end load, and an expense ratio of 0.5%. If the mutual fund earns an annual rate of return of 12% before fees, how much money will your investment be worth in 10 years? O $2,910.55 O $3,025.50 O $2,775.25 O none of the choicesSuppose you invest $3200 in a mutual fund. Over 5 years, your investment grows in value to $8500. What is your total return? State your answer as a percentage rounded to 1 decimal place. [Only give the numerical answer. Do not enter a percentage sign (%) in the answer box] ◆ Previous hp Not saved Submit Our(Use Calulator or Formula Approach) Suppose you invest $500 in a mutual fund today and $600 in one year. If the fund pays 9% annually, how much will have you in two years? How much will you have in 5 years if you make no further deposits?