What's the future value of $10,000 after 10 years if the appropriate interest rate is 10%, compounded monthly? You are not required to show calculations but you must list the inputs used such as N, PV, FV, etc. O $25,937.42 O $27,070.41 O $10,000
Q: why must financial institutions be regulated?
A: Financial institution operations are governed by laws and regulations known as financial…
Q: The problem describes a debt to be amortized. (Round your answers to the nearest cent.) Sean Lee…
A: We will use present value of ordinary annuity formula to calculate size of quarterly payment.
Q: Nikita Enterprises has bonds on the market making annual payments, with seven years to maturity, a…
A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…
Q: Stock in Road Pave Zambia has a beta of .85. The market risk premium is 8 percent, and the Bank of…
A: Data given: Beta=0.85 Market risk premium =8 % Risk free rate = 5% (Zambia treasury bills are…
Q: Compute for the effective interest rate per seminannual. Nominal rate = 7.43% compounded bi-monthly
A: Nominal rate = 0.0743 Number of compounding = 6 Effective interest rate per semiannual = ?…
Q: Fegley, Incorporated, has an issue of preferred stock outstanding that pays a $6.55 dividend every…
A: Annual dividend = $6.55 Price = $91 Required return = ?
Q: The TLC Yogurt Company has decided to capitalize on the exercise fad and plans to open an exercise…
A: NPV is defined as the sum of the present values of all future cash inflows less the sum of the…
Q: Sara again sells Popsi, a new illegal drug (?), for 3.75 dollars per bottle. Its variable cost per…
A: Data given: Selling price=$ 3.75 per bottle Variable cost =$ 1.16 per bottle. Fixed operating costs…
Q: Problem #2 Temporary Employee Time Card Name: Eugene Mueller Dept: Sales Note: No Overtime Rate…
A: Calculation of temporary employee total pay is given below.
Q: You own 300 shares of Finance Inc’s preferred stock which currently sells for $30.00 per share and…
A: The preferred stock is a hybrid instrument with the characteristics of both bonds and shares. It…
Q: ABC Corporation plans to issue pieces of 12%, 2-year, P1,000 face value notes that pays quarterly.…
A: Here, To Find: Part A. Yield to maturity =? Part B. Interpolation method =?
Q: d. Find the amount of 32,100 invested for 4 years and 3 months at 18% compounded: aa). monthly bb).…
A: Here, Invested amount (PV) = 32,100 Time period (NPER) = 4.25 years Interest rate (RATE) = 18%…
Q: A Treasury bill has a bid yield of 2.79 and an ask yield of 2.77. The bill matures in 175 days.…
A: Here, Bid yield = 2.79% Ask yield = 2.77% Maturity period = 175 days Face value = $1,000 To Find:…
Q: I love South Africa, I really do. I love everything from the beautifully crisp beaches to the…
A: South Africa, the land which abodes colorful culture is known for its pristine beauty. On the…
Q: Question 8 What is the future value of a lump sum of $4,351 invested for 7 years at 5.4 percent…
A: Initial investment (I) = $4,351 Interest rate (r) = 0.054 Period (n) = 7 Years Future value = ?…
Q: uppose that Nintendo Co., Ltd. (NTDOY) is currently trading at $180 per share. Mark buys 200 shares,…
A: Brokers provide margins to client for trading and so that they can trade more and so that client and…
Q: strengths and weaknesses of public financial management at the local government level.
A: The collection, management, and use of public funds across an economy are referred to as public…
Q: What is the present value of $1,400 a year at a discount rate of 8 percent if the first payment is…
A: Annual payment (P) = $1400 Discount rate (r) = 8% Number of annual payments (n) = 25 First payment…
Q: Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your…
A: Principal (P) = $15,900 Rate (r) = 0.02 Time (t) = 11 Years Amount (FV) = ? Interest = ? We will…
Q: pose that after the 6-month grace period after you graduate college, you have $63,0 dent loan debt.…
A: As there is more compounding than there is going to be more effective interest rate and more is the…
Q: Company Miami just paid annual dividend of $25 today. The dividend is expected to grow at 8% for the…
A: Solution:- Dividend Discount Model (DDM) is the model to calculate stock price of a company by…
Q: a. Use the appropriate formula to find the value of the annuity. b. Find the interest. Periodic…
A: Future value The sum of money to be paid at a certain time in the future is known as future value.…
Q: Use the following information for Smith Brothers, Inc: EBIT / Revenue 15.00% Government Tax Rate…
A: Return on Asset: A sort of return on investment indicator called return on assets (ROA) gauges a…
Q: Calculate what $890 would grow to at 7.5% per year compounded daily for 6 years. (Use the Table…
A: To calculate the future value we will use the below formula Future value = PV*(1+(r/m))n*m Where…
Q: The following information relates to three potential investment projects that are being considered…
A: Project A Project B Project C Initial cost £ 1,75,000.00 £ 1,95,000.00 £…
Q: You have just purchased shares in the Hi-Tech Long-Term Bond Fund, a mutual fund that invests in…
A: In the world of investing mutual funds play an important role when it comes to accumulation of…
Q: What is the effective rate for Investment A? Answer as a percent, rounded to two decimal places.…
A: Information Provided: Investment A rate = 7.35% compounded semi-annually Investment B rate = 7.4%…
Q: Evaluate three commonly used approaches to qualifying financial risks.
A: Risk management is the process of assessing risk and then based on the assessment, develop…
Q: The stated interest rate on your account is 8%, interest compounded monthly. If you deposit $50 each…
A: Future Value Annuity is the technique of determining the furure value of a series of regular…
Q: Which of the following statements regarding unsystematic risk is accurate
A: Unsystematic Risk: It is the risk related to a particular investment and thus, is also called…
Q: Gregory invested an amount of $12,000 in a mutual fund. After 3 years and 3 months the accumulated…
A: Semi annual period means a period of 6 months. Hence there are two semiannual periods in a year.
Q: You are interested in investing in a company that expects to grow steadily at an annual rate of 7.9…
A: The maximum price you are willing to pay is the PV of all future dividends. This is also called as…
Q: Ratios Current Ratio Quick Ratio Receivable Turnover Inventory Turnover Debt Ratio Return on Assets…
A: Concept. Financial ratios of the company are used by lenders and investors for making decisions with…
Q: The Lee family is buying a new 3,500-square-foot house in Muncie, Indiana, and will borrow $237,100…
A: The periodic payment is the equal amount of payment at regular intervals. The periodic payment…
Q: If the company chooses to drill today, what is the project's net present value?
A: The formula to calculate the PV of cash inflows is as follows: PV of cash inflows = CF1 - (1+r)-nr…
Q: Find the future value of an ordinary annuity of $8,000 semiannually for eight years at 7% annual…
A: Given The periodic annuity payment is $8000 Term is 8 years Annual rate is 7% compounded semi…
Q: A portfolio has 80 shares of Stock A that sell for $37 per share and 115 shares of Stock B that sell…
A: A portfolio refers to a collection of investments that are held by an investor. The portfolio weight…
Q: June 2019 Mexican peso futures contract has a price of $0.05182 per MXN. You believe the spot price…
A: Future contracts is one of the contract under which agreement is made to purchase stock or security…
Q: A brand-new car has a list price of ₱850, 000. The car dealer is giving a trade discount of 10% and…
A: Car Price = ₱850,000 Trade discount = 10% Down Payment = 20% Time Period = 5 Years Interest Rate =…
Q: Isn't the final payment going to be $144.78? How did you get final payment of $138.51
A: Table showing the final payment: Snapshot:
Q: Bates Limited is considering investing in two capital investment projects. The expected capital…
A: This is a typical capital budgeting question. We have to find the IRR of two projects and assess…
Q: The stated interest rate on your account is 12.5%, interest paid monthly. Your effective rate of…
A: Nominal interest rate is 12.5% paid monthly Compounding frequency "n" is 12 To Find: Effective…
Q: ABC Ltd.'s bonds sell for 90% of their face value (assume face value = $100). These bonds come with…
A: Solution:- Yield to maturity (YTM) means the rate of return earned by the bondholder if he hods the…
Q: Find the sales charge and sales charge percent for one share of AAGSX mutual fund stock if the stock…
A: Sales charge is the commission to the broker to execute or to buy the mutual fund. It is also known…
Q: What are the expected return and standard deviation of your client's portfolio?
A: Given, expected rate of return of 19% standard deviation of 30% The T-bill rate is 4%.
Q: A plant erected to manufacture sock has a first cost of P10,000,000.00 with an estimated salvage…
A: A method for depreciating an asset while earning enough cash to replace it when its useful life is…
Q: (a) Suppose you decide to short sell some GameStop shares. Their cu rent price is $5, and you have…
A: Long position means that you think prices will go up and going short means you believe that prices…
Q: What is the expected rate of return for the company A's bond if the return is 10% for one-fourth of…
A: Expected Return - It is the return from investment in shares/bonds considering the various…
Q: You run a nail salon. Fixed monthly cost is $5,419.00 for rent and utilities, $5,913.00 is spent in…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Can you explain the answer without excel please? Thanks.
A: Cost of Car is $52000 Interest rate is 6% Time period is 5 years Monthly Interest rate "rate" is…
Step by step
Solved in 2 steps
- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. O A. $2742.53 B. $2632.45 O C. $1967.25 OD. $2572.50 O E. None of the above is a possible number.
- How much money you must invest today in order to withdraw P 2,000 per year for 10 years, if the interest rate is 12%? P 11201 P 11501 P 11301 O P114012. An investment promises to pay a perpetuity of $100 per year starting from today. If the discount rate is 10% per year, how much should you pay for this investment? A $90.9091 B $190.9091 C $1,000 D $1,100How much will you pay for an investment if you expect to receive $7.000 end of each years for 5 years and if the appropriate interest rate is 4.5%? $27,831.47 $29,851.84 O $29,083.89 O $30,729.84 $38,294.97 O $8,723.27
- What is the total future value ten years from now of $400 received in 1 year, $350 received in 2 years and $900 received in 8 years if the interest rate is 5% per year? O a $2,047.15 O b. $2,100.11 Oc $2,299.15 Od. $2,129.89 O e. $2.254.44What is the present value of $14,000 to be received in one year if the interest rate is 8% p.a.? a. $6000 b. $15120 c. $12963 d. $22000Suppose you wish to have $18500 in 5 years. use the present value formula to find out how much you should invest now at 9% interest, compounded semiannually, in order to have $18,500, 5 years from now. Then calculate the interest. The possible answers are: a. 6587.34 b. 8325.00 c. 10175.00 d. 11912.66 I understand how to do the present value formula but after that I don't understand how to calculate the interest, please help!
- Find the present value of the given future amount. $31,000 for 9 months at 8% simple interest What is the present value? $ (Round to the nearest dollar as needed.)What's the future value of $1,300 after 5 years if the appropriate interest rate is 6%, compounded monthly? Select one: a. $1,683.36 b. $1,928.86 c. $1,385.27 d. $1,753.51 e. $1,841.18How much will you pay for an investment if you expect to receive $3,500 end of each year in perpetuity and if the appropriate interest rate is 5%? $50.000.00 $60,000.00 $300,000.00 O $150,000.00 $70,000.00 O $350,000.00 O $200,000.00 Cannot compute. Not enough information