Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j 2 = 3.2% from 1/7/2021 to 30/9/2021 and j2 = 4.83% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places.Question 11 Answer a. 3037.527 b. 3038.404 с. 3038.048 d. 3039.408
Q: You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of…
A: Price of the share can be determined by discounting the expected dividend growth with the cost of…
Q: Compute the future value in year 7 of a $2,200 deposit in year 1, and another $1,700 deposit at the…
A: Future value is cumulative amount that can be calculated by using the below formula.Future value =…
Q: Originally attributed to A Tribe Called Quest, American rapper Meek Mill has stated “Scared money…
A: Meek Mill's statement, "Scared money don't make no money," reflects the idea of the risk premium in…
Q: Graft Hair Salon has three barbers to provide service in a neighborhood of downtown Santa Fe.…
A: 1. L\=μλWhere:* λ\\lambdaλ = Arrival rate (customers per hour)* μ\\muμ = Service rate…
Q: Listen An example of the no-arbitrage principle holding would be when all risk-free investments…
A: In a scenario where the no-arbitrage principle holds, risk-free investments should offer investors…
Q: Suppose an individual invests $24,000 in a load mutual fund for two years. The load fee entails an…
A: The annual return on the mutual funds over the two years investment period is 10.234 %Explanation:…
Q: Lukow Products is investigating the purchase of a piece of automated equipment that will save…
A: Net present value:The net present value is the popular concept which also refers to the net present…
Q: Suppose you have saved $216 each month for the last 7 years to make a down payment on a house. The…
A: The objective of the question is to calculate the total amount in the savings account after 7 years…
Q: Teahna's announced that its next annual dividend will be $1.80 per share and all future dividends…
A: GivenNext Annual Dividend (D1)= $1.80Growth (g) = 4% i.e. 0.04Rate of return (r) = 11% i.e. 0.11To…
Q: You owe $24,000 on student loans at an interest rate of 5.45% compounded monthly. You want to pay…
A: Given loan amount is Interest Rate is Time period since number of payments is monthly total number…
Q: A stock's returns have the following distribution: Demand for the Company's Products Probability of…
A: Probability weak = p1 = 0.1Probability below average = p2 = 0.2Probability average = p3 =…
Q: Beacon Company is considering automating its production facility. The initial investment in…
A: "NPV can be utilized to evaluate a project's viability. A project with a positive NPV can be…
Q: The probability distribution of the returns of two assets, A and B, are shown in the table below.…
A: The combined variability of two variables is described by covariance. When there is a positive…
Q: Suppose you found your dream house and you intend to buy it with a $197,705, 16-year, 5% APR…
A: Loan Balance at the End of Year 2Here's how to calculate the loan balance at the end of the year 2…
Q: Answer the following complete solution: The committee decided to secure a loan of $2,400,000 for the…
A: Simple Interest: Throughout the loan duration, simple interest is computed on the initial principal…
Q: As an analyst at an investment bank, you are asked to compare the monthly returns of the two stocks…
A: The objective of the question is to compare the monthly returns of Tesla and Apple Inc. stocks from…
Q: Madetaylor Inc. manufactures financial calculators. The company is deciding whether to introduce a…
A: The objective of the question is to calculate various financial metrics related to a new project…
Q: Washington Mutual was a US Bank which went bankrupt at the end of 2008 due to a number of risk…
A: The objective of this question is to understand the concept of credit risk from both an individual…
Q: The U.S. system of accounting for worldwide income is not the norm in the rest of the world. Do you…
A: The U.S. system of taxing worldwide income for its citizens and residents is a complex issue with…
Q: Investment X offers to pay you $5,300 per year for eight years, whereas Investment Y offers to pay…
A: Solution for Present Value (PV) of Investments X and YWe will solve this using both Excel formulas…
Q: If you invest $3000 today at 7% per year, how much will it be worth in 30 years? PLEASE SHOW WORK IN…
A: The objective of the question is to calculate the future value of an investment of $3000 at an…
Q: Tanaka Machine Shop is considering a four-year project to improve its production efficiency. Buying…
A: Cost of machinery: $429,000Pretax cost savings: $161,000Salvage value: $62,000Inventory intial…
Q: Celestial Crane Cosmetics is considering an investment that will have the following sales, variable…
A: The net present value for a project will highlight the probable addition to the value of the company…
Q: YIELD TO CALL Seven years ago the Templeton Company issued 20-year bonds with an 11% annual coupon…
A: Variables in the question:nper=7Coupon rate=11%pv=Par value=$1000pmt=Par value * Coupon rate=$1000…
Q: Cabaret Co. has issued stock options (warrants) to its employees, some of which will come to…
A: The objective of the question is to calculate the effect on Earnings Per Share (EPS) after the stock…
Q: The situation where more reduction of risk could be achieved by spreading the investment across two…
A: The objective of the question is to identify the correlation scenario that would result in the…
Q: ind the present values of the following cash flow streams at a 7% discount rate. Do not round…
A: Present Value:It is the current value of a future sum of money or stream of cash flows given a…
Q: Which one is not an incentive for a bank to securitize its mortgage loans? Reduce insurance premium…
A: The objective of the question is to identify which among the given options is not a reason for a…
Q: If you are creating an option play that benefits from a VOLATILITY strategy, you expect the stock…
A: The objective of the question is to understand the expected movement of the stock price when an…
Q: You want to have $5 million when you retire in 30 years. You feel that you can save $750 per month…
A: The objective of this question is to find out the Annual Percentage Rate (APR) that needs to be…
Q: How much will I receive when I redeem my CD before it's maturity date? $33,500 current balance,…
A: Face value of CD=$33500Interest rate=5.15%Three months
Q: As chief investment officer of a small endowment fund, you are considering expanding the fund's…
A: A concept that is derived from investment management which highlights how the available funds must…
Q: sing the data in the following table, and the fact that the correlation of A and B is 0.06,…
A: Standard deviation is the measure of risk and volatility of the stock it should be measured as…
Q: A project requires an increase in inventories, accounts payable, and accounts receivable of…
A: Net Present Value (NPV) is a financial metric that calculates the difference between the present…
Q: 1) Today is your 30th birthday and you must choose between two retirement options. The first option…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: The following table summarizes prices of various default-free zero-coupon bonds (expressed as a…
A: Bonds are a type of debt instrument that helps organizations and governments borrow money in the…
Q: Suppose you are planning to buy a house with a $223,420, 24-year, 9% 6/1 Hybrid loan, where interest…
A: The objective of the question is to calculate the monthly payment for a 6/1 Hybrid loan after the…
Q: Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 30 percent for the next…
A: As per dividend discount model price of stock will be equal to the present value of the future…
Q: Suppose a firm has 16.5 million shares of common stock outstanding and six candidates are up for…
A: In cumulative voting, shareholders are allowed to cast all their votes for a single candidate or…
Q: Information about three securities appears next. Stock 1 Stock 2 Bond 1 Beginning-of-Year Price $…
A: The holding period return is the rate of return on an investment over a period.The holding period…
Q: Calculate the P/E ratio Baxter has a retention ratio of 62%, a ROE of 17%, and a discount rate of…
A: Rentention ratio (b) = 62% or 0.62Return on Equity (ROE) = 17% or 0.17Discount rate (k) = 13% or…
Q: Calculate the monthly payments of a 3030-year fixed-rate mortgage at 6.006.00 percent for $136…
A: Mortgage loan=$136200Period= 30 yearsInterest rate=6%
Q: Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4%…
A: The objective of this question is to calculate the required rate of return for Mudd Enterprises. The…
Q: Micro, Inc., started the year with net fixed assets of $76,175. At the end of the year, there was…
A: b. $35,685 (Not in the right choices, the correct amount in the explanation field.)Explanation:Step…
Q: Four mutually exclusive projects are being considered for a new 2-mile jogging track. The life of…
A: The Benefit-Cost Ratio (B/C Ratio) is a financial metric used to evaluate the profitability or…
Q: Select and consider real-world assets and their correlation. Identify and discuss two assets or…
A: The objective of this question is to identify and discuss two pairs of assets or variables, one pair…
Q: Find the face value of the zero-coupon bond. 20-year bond at 6.67%; price $8150 The face value of…
A: A zero coupon bond is the bond that does not pay the coupon payment and the face value of the bond…
Q: Consider the following two machines a company can purchase. The following table provides the costs…
A: Net present value (NPV) is a financial metric used to evaluate the profitability of an investment or…
Q: Consider the CAPM. The expected return on stock a with a beta of 1.5 is 26% The stock with a boto
A: CAPM is the capital assets pricing model which gives the required rate of return based on the beta…
Q: Stock R has a beta of 1.5, Stock S has a beta of 0.85, the required return on an average stock is…
A: The objective of the question is to find out the difference in the required returns of two stocks…
Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j 2 = 3.2% from 1/7/2021 to 30/9/2021 and j2 = 4.83% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places.
Question 11 Answer a. 3037.527 b. 3038.404 с. 3038.048 d. 3039.408
Trending now
This is a popular solution!
Step by step
Solved in 1 steps with 2 images
- If 90,000 is invested in a fund on December 31, 2019, and 5 equal annual withdrawals of 23,138.32 are made starting on December 31, 2020, that will deplete the fund, what is the interest rate being earned if interest is compounded annually?Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j2=3.59% from 1/7/2021 to 30/9/2021 and j2=3.93% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places. Question Answer a. 3034.806 b. 3032.925 c. 3033.446 d. 3033.714Today is 1/7/2021, John plans to deposit $500 at the beginning of each month into an investment fund. The first deposit will be deposited today. John predicts that the return rate of this fund will be j2=2.23% from 1/7/2021 to 30/9/2021 and j2=4.3% from 1/10/2021 to 31/12/2021. What will be balance amount of this account on 31/12/2021? Round your answer to three decimal places. a. 3032.601 b. 3033.695 c. 3032.335 d. 3031.814
- Anne wants to accumulate $25,000 by December 31, 2019. To accumulate that sum, she will make twelve equal quarterly deposits of $1,616.66 at the end of March, June, September, and December, beginning on March 31, 2016, into a fund that earns interest compounded quarterly. What annual rate of interest must the fund provide to yield the desired sum? 4.5% 26% 6.5% 18%4) Ashley deposits $500 into an investment fund each January 1 starting in 2005 and continuing to 2014 inclusive. If the fund has an average annual growth rate of ji = 10%, how much will be in her account on January 1, 2019?John Goodheart wishes to provide for 6 annual withdrawals of $3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits?
- David wants to accumulate at least $40,000 by depositing $1,000 at the end of each month into a fund that earns interest at 5.75% compounded monthly. a. How many deposits does he need to make in order to reach his goal? Round to the next payment b. How long will it take David to reach his goal? year(s) month(s) Express the answer in years and months, rounded to the next payment periodThe Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $100,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?Baxter desires to purchase an annuity on January 1, 2023, that yields him five annual cash flows of $11,000 each, with the first cash flow to be received on January 1, 2026. The interest rate is 10% compounded annually. The cost (present value) of the annuity on January 1, 2023, is ________. (Use spreadsheet software or a financial calculator to calculate your answer. Round intermediary calculations two decimal places and round your final answer to the nearest dollar.) Group of answer choices $55,000 $28,481 $45,869 $34,462
- You decided to take a study abroad for the Spring 2023 semester. You decided to save $200 each month from July 2022 to December 2022 (6 months). You can deposit the funds in a bank account at the beginning of each month. The fund is expected to earn 7% per year. Under these conditions, how much will you have at the end of December 2022?Sam Hart decides to invest $70,000 in a fund that will earn 6% annual interest, compounded semiannually. How much will his investment be worth in three years? Draw a timeline to illustrate the problem. What is the future value of your investment? (Use the present value and future value tables, a financial calculator, a spreadsheet or the formula method for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.)Cindy Medavoy will invest $6,740 a year for 23 years in a fund that will earn 5% annual interest. If the first payment into the fund occurs today, what amount will be in the fund in 23 years? If the first payment occurs at year-end, what amount will be in the fund in 23 years? First payment today First payment at year-end