What is the effective annualized rate compounded continuously that is equivalent to 16.000% per annum compounded quarterly? correct answer is 0.1569 i dont understand, can someone show work and explain
Q: What is the value of the Bolivian operations prior to the unexpected change in the spot rate…
A: Prior to the unanticipated spot rate, the value of Bolivian operations was:Information Given, No. of…
Q: Identify all the regional regulatory institutions within the CIBC FirstCaribbean International Bank…
A: CIBC FirstCaribbean International Bank operates within the Caribbean region, and as such, its…
Q: How much of a $50,000 account should a broker invest at 8 percent and how much at 12 percent to 9.5…
A: Let's denote:x = amount invested at 8% y = amount invested at 12%
Q: The trustees of the Danube School of Art and Music, located in Tuttlingen, Germany, are considering…
A: As per the IRR tool of the capital budgeting process, the rate of return on the given cash flows…
Q: Current Attempt in Progress Using the appropriate interest table, answer the following questions.…
A: Future value of annuity is the future equivalent value of periodic payment. It is computed by taking…
Q: £11,700 is invested at time t=0 and a further 8,800 at time t=5. Calculate the value of the fund…
A: The concept of TVM refers to the concept where money received earlier is considered more valuable…
Q: Considering the world economic outlook for the coming year and estimates of sales and earning for…
A: Expected return is the sum of product between the possible returns and their corresponding…
Q: If average daily remittances are $4 million, and "extended disbursement float" adds 8 days to the…
A: Company wants to reduces cash outflow and increase cash inflow because cash money can be invested…
Q: What is the standard deviation given the following information? Probability Possible Returns 24.0%…
A: Probability (P)Possible Returns0.2524.0%0.2036.0%0.559.0%Required:Standard Deviation =?
Q: Assume that you deposit $ 1,310 each year for the next 15 years into an account that pays 15 percent…
A: The FV of an investment refers to the combined value of the cash flows of the investment at a…
Q: The real risk-free rate is 2.5% and inflation is expected to be 2.25% for the next 2 years. A 2-year…
A: Maturity risk premium refers to the additional return that investors demand for holding longer-term…
Q: Devon Harris Company sells 9% bonds having a maturity value of $2,984,000 for $2,661,311. The bonds…
A: Effective interest rate refers to the income that an individual receives by holding onto the bond…
Q: Net present value—unequal lives Project 1 requires an original investment of $375,000. The…
A: NPV means Net present value.It is a capital budgeting technique used for making investment…
Q: Exercise 5-20 (Algo) Deferred annuities; solving for annuity amount [LO5-8,5-9] On April 1, 2024,…
A: Purchased Amount = $1,100Time Period = 18 MonthsAnnual Interest Rate = 24%
Q: The information below relates to a company that makes wooden chairs. For the forthcoming year,…
A: Fixed Cost = fc = £150,000Variable Cost = vc = £300,000Sales = s = £500,000Number of Chairs sold = n…
Q: Earnings per common share of ABC Industries for the next year are expected to be $3.2 and to grow 8%…
A: The dividend discount model or Gordan's Model will be used here. As per the dividend discount model…
Q: DataDyne Company reported EBIT of $590 million for the most recent fiscal year. Interest expense…
A: Free cash flows = Net Income + Depreciation expense - Capital Expense + Decrease in working capital
Q: What interest rate makes this a fair price?
A: We can determine the required return by rearranging the PV of growing perprtuity formula as below:In…
Q: Create an amoritization schedule for a $1,000,000 loan that requires equal annual payments in each…
A: An amortization schedule is a table or chart that outlines the specific details of a loan over time.…
Q: A credit card bill shows a balance due of $750 with a minimum payment of $15 and a monthly interest…
A: The monthly interest rate is 1.62%.
Q: Peter has borrowed $8,600 to pay for his new car. The annual interest rate on the loan is 7.4…
A: We need to use present value of annuity due formula to calculate annual payment of loan.WherePMT…
Q: A project has annual cash flows of $6,000 for the next 10 years and then $9,000 each year for the…
A: Net Present Value (NPV):NPV is a financial metric that calculates the difference between the present…
Q: 8. an annuity ract in 2023 that will pay On March 1, 2023, Don, age 59, paid $75,0 month beginning…
A: Annuity payment begin on March 1, at the beginning of the month. We need to sum up all payments…
Q: Assume the following information: U.S. deposit rate for 1 year U.S. borrowing rate for 1 year New…
A: Money Market Hedging is one of the technique used for hedging purposes. It locks in current…
Q: What tax would need to be assessed on Venita to make the tax horizontally equitable?
A: Horizontal equity in taxation refers to the principle that individuals or entities in similar…
Q: Tony Ring wants to attend Northeast College. He will need $50,000 6 years from today. Assume Tony's…
A: We need to use compound interest formula below to calculate principal deposit today to get desired…
Q: An amount, P, must be invested now to allow withdrawals of $1,200 per year for the next 15 years and…
A: The PV of an investment refers to the combined value of the cash flows assuming that they are…
Q: Cost-Cutting Proposals Tanaka Machine Shop is considering a four-year project to improve its…
A: NPV is also known as Net Present Value. It is a capital budgeting technique which helps in decision…
Q: The most recent financial statements for Bradley, Inc., are shown here (assuming no income taxes):…
A: External financing needs:External financing needs refer to the amount of money that a company must…
Q: The following are examples of old services provided by banks except: O O Carrying out currency…
A: The widespread practice of banks offering personal loans to everyday consumers is more recent in the…
Q: f I want to buy a new house and currently have $45 000 and I need to have a 10% down payment plus an…
A: Information Provided:Amount at hand (Present value) = 45,000Down payment = 10% of house costClosing…
Q: A Japanese company has a bond outstanding that sells for 87 percent of its ¥100,000 par value. The…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: Supernormal Growth Synovec Corp. is growing quickly. Dividends are expected to grow at a rate of 25…
A: Growth Rate for first 3 year = g3 = 25%Growth rate after 3 year = g = 4.5%Required Rate of Return =…
Q: Calculate January Net Cash Flow (Labeled Y Below): January $10,000 $4,000 Sales Current Month…
A: Net cash flow = Total cash receipts - Estimated Cash payments
Q: Suppose that the current price of oil is $ 90 per bbl. Suppose it costs $ 0.5 per bbl per month to…
A: Forward priceThe forward price is referred to as the predetermined price of a commodity at a…
Q: Months Financed Maximum Car Price 48 60 f you finance the car for a shorter period of time, you can…
A: To determine the maximum car price, we need to find the PV of the monthly payment and then add the…
Q: The following figures show the optimal portfolio choice for two investors with different levels of…
A: The red curve is the indifference curve. The green curve is the efficiency frontier and the black…
Q: A non-dividend-paying stock currently is worth $84 and its volatility is 20% per annum. The delta of…
A: A European option is classified as a type of option where there is a restriction on executing the…
Q: In practice, a common way to value a share of stock when a company pays dividends is to value the…
A: Common stock is a financial security that depicts an ownership claim to a corporation. The price of…
Q: A motor cycle tag price is 75,000 cash for 60 days. A buyer wants to pay outright cash on the…
A: Variables in the question:Motor cycle tag price = 75,000n=60 daysSimple interest=12%Note: Assumed…
Q: Consider the following bonds Which of the bonds A to D is most sensitive to a 1% drop in interest…
A: Bonds are debt instruments issued by companies. Bond holders are paid periodic coupons. The value of…
Q: United Distributors normal credit terms to X-Tyres Stores are 30 days but is prepared to allow a 4%…
A: We can determine the cost to X stores using the formula below. Please note we are using 360 days in…
Q: A stock just paid a dividend of $1.86. Going forward, dividends will be paid annually and grow at a…
A: In this example we can use dividend discounting model of constant growth to find out the fair price…
Q: What is the Year 4 cash flow?
A: The net amount of cash that a firm generates or uses over the course of a given time is known as…
Q: Indigo Corporation is considering purchasing a new delivery truck. The truck has many advantages…
A: Payback period-It represents the time period required for recovery of the initial investment in the…
Q: The stock price of Fujita Company is $53.30. Investors require a return of 15 percent on similar…
A: The Dividend Discount Model (DDM) is a financial valuation approach used to estimate the intrinsic…
Q: Question 3 Listen A stock sells for $ 61.98. The next dividend will be $ 3.82 per share. If the…
A: The dividend growth method of valuation is a financial model used to estimate the value of a…
Q: 10) Find the amount of 6 semiannual advance payments of $14,500 if the interest is 19% convertible…
A: We can determine the future value of the annuity using the formula below:r = semiannual interest…
Q: Given the following, what is the individual's net worth?
A: We can determine the net worth using the formula below:
Q: Installing low thermal emissivity windows (low-e windows) on buildings can contribute to energy…
A: The annual worth of the given cash flows which can be expected by an investor from the investment is…
What is the effective annualized rate compounded continuously that is equivalent to 16.000% per annum compounded quarterly?
correct answer is 0.1569 i dont understand, can someone show work and explain
Step by step
Solved in 3 steps with 2 images
- How did you compute the remaining quarterly periods and quarterly rate to come up with an answer of 83%? Can you show me the full process of the solution so that it is easy to understand?How is the accumulated value 12,373.78 if yearly payments of 20,000 are made?Approximately, what is the value of (P) if A=600, n322 years, and i= 21% per year? Select one: O a. 3377 O b. 2814 O c. 2336 O d. 3771
- 11:03 Problem-Set-in-Compound-Interest.pdf 5 C. Finding the Term( answer any 2) 1. How long will it take for P28, 280 amount to 37, 640 if invested at 9.88% compounded quarterly? Semiannually? Monthly?What is the effective annualized rate compounded quarterly that is equivalent to 12.000% per annum compounded continuously?16. What annual rate r compounded continuously is equivalent to a nominal rate of 6% compounded semiannually? A. €1100 B. €1410.26 C. D. €1733.56 €1459.61
- A payment of $5000 that was due 20 days ago and another payment of $4000 that is due 50days from now are to be settled/replaced by a payment of $6000 today and a payment of $X 90-days from today. If r = 11%, what is the value of X using today as the focal date? please show with processb1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e(0.055)(6.25) = $100e(0.3438) = $100(1.4102) = $141.02. If you invest $15000 today, what amount does the formula say you will get back if you leave it for 5 years and 3 months in a savings account paying 4 1/2% annually?Hi, i know how to solve this question, but i was wondering if it was possible to solve #1 using the effective yearly rate. IE. (1+r/n)^n
- Consider two investment opportunities, Investment A and Investment B. Investment A pays interest at the rate of 4% per year, compounded semi-annually. Investment B pays interest at the rate of 3.925% per year, compounded daily. Which investment provides the better return? Investment A Investment B Both provide the same return. There is not enough information provided to answer this question.Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be replaced by a single equivalent amount paid at the focal date of 27 months from today. Money earns 9.6% compounded annually. Using P/Y=C/Y=1 and PMT-0, determine the economically equivalent value for each amount at the focal date and enter the values in the blanks. In your rough work, it may be helpful to draw a timeline with the appropriate focal date for the unknown amount. Round dollar values to 2 decimal places. Moving $730 due today to the focal date: N= A PV= Moving $945 due in 3 months to the focal date: N = A PV= Moving $935 due in 6 months to the focal date: N = A PV= The single amount at the focal date is = A A FV- FV= AFV = E NYou plan to invest in an account which pays 3.5% compounded continuously. If the investment period is for 12 years, then A(P) = P e 0.035 · 12 = P e 0.42 gives the total balance of P dollars. Find a formula for A'(P). Find and interpret A'(4000). Compare the approximation to the actual change. a. b. С. a. A'(P) =| (Type an exact answer in terms of e.) b. A'(4000) = %3D (Round to the nearest cent as needed.) Interpret A'(4000) = 1.52 O A. The future value of a 13 year investment of $4001 will be $ more than the future value of a 13 year investment of $4000. O B. The future value of a 13 year investment of $4000 will be $ more than the future value of a 13 year investment of $4000. O C. The future value of 12 year investment of $4000 at 4.5% will be $ more than the future value of a 12 year investment of $4000 at 3.5%. O D. The future value of a 12 year investment of $4001 will be $ more than the future value of a 12 year investment of $4000. c. A(4001) – A(4000) = dollars per year.…