You deposit $1,000 in an account earning 9.3% interest compounded daily . How much will you have in the account in 15 years? Use 360 days for a year. Round your answer to the nearest penny.
Q: (Related to Checkpoint 9.4) (Bond valuation) A bond that matures in 16 years has a $1,000 par value.…
A: After the purchase of the bond by the investor Bond buyers become the issuer's debtors and are…
Q: Assume that a $1,000,000 par value, semiannual coupon U.S. Treasury note with four years to maturity…
A: A treasury note is a kind of debt security issued by the government and private companies to the…
Q: o offer scholarships to children of employees, a company invests $14,000 at the end of every three…
A: Annuity refers to periodic payments that are provided in exchange for a lump sum payment. Annuities…
Q: Max is thinking about purchasing a new car. However, he is nearing his goal to purchase a home and…
A: Solution:Total debt to income ratio refers to the percentage of debt amount to the income.So, total…
Q: The expected return on stock A is 11.15 percent. The expected return on stock B is 8.30 percent.…
A: Capital Asset Pricing Model (CAPM) is an alternative model to find out the expected return or cost…
Q: The risk-free rate is usually approximated by. O the return on Treasury bills the return on bank…
A: Risk free rate -It is the rate of return of an investment that carries zero risk.
Q: A stock just paid a dividend of $1.89. The dividend is expected to grow at 28.89% for five years and…
A: Current price of stock is the price which can be paid for purchase of the stock. It is also called…
Q: A new computer system will require an initial outlay of $20, 500, but it will increase the firm's…
A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…
Q: Design a spreadsheet similar to the one below to compute the value of variable growth rate firm over…
A: The concept of present value asserts that a sum of money is worth more now than it will be in the…
Q: NCP bank extend a $400,000, 20-year mortgage at 5%. The interest rate increases to 6% soon after…
A: Banks are subjected to interest rate risk because increase in interest rate would cause bank to…
Q: A bank pays an interest of 6.8% for a 6 month term deposit. Calculate the amount that Stacy must…
A: Interest=$480.47Rate=6.8%Time=6 monthsRequired:Principal amount of investment =?
Q: Barton Industries estimates its cost of common. equity by using three approaches: the CAPM, the band…
A: The equity cost can be referred to as the cost expressed in percentage terms which depicts the cost…
Q: Bellinger Industries is considering two projects. have for inclusion in its capitul budget, and you…
A: Net present value refers to the difference between the present value of cash inflows and cash…
Q: Bellinger Industies is considering two projects. for inclusion in its capital budget, and you Both…
A: Solution:Excel formula:Payback period = Prior period + (Cashflow of prior period / Cashflow of later…
Q: Charisma, Inc., has debt outstanding with a face value of $5.1 million. The value of the firm if it…
A: Debt outstanding = $5,100,000Value of equity = $22,000,000Outstanding Stock = 370,000Price Per Share…
Q: A company has a 12% WACC and is considering two mutually exclusive investments (that camnot ·be…
A: The IRR Rule aids businesses in making project decisions.According to the IRR rule, if the IRR is…
Q: Storage and insurance costs on gold are $10.1 per month per ounce and have just been paid. The spot…
A: Here,SpotPrice of Gold is $1879.28Risk Free Rate is 4.21%Storage and Insurance Cost is $10.1 per…
Q: Suppose you are the money manager of a $4.48 million investment fund. The fund consists of four…
A: CAPM refers to the relationship between the expected return of the stock and the risk associated…
Q: What is the investor's risk aversion coefficient?
A: Risk and return are essential financial principles. The term “risk” refers to the uncertainty and…
Q: iRobot has total sales of $380.000, costs are $270,000, and depreciation is $30,000. The tax rate is…
A: Sales$380,000Cost$270,000Depreciation$30,000Tax 25%Required:Operating Cash flow =?
Q: A full time school teacher recognized a $6000 loss in 2020 from his part time farming activities.…
A: For a full time farming business, complete farming losses can be claimed as a non- capital loss of…
Q: An investment project costs $15,600 and has annual cash flows of $3,900 for six years. a. What is…
A: YearsCash flows0($15,600)1$3,9002$3,9003$3,9004$3,9005$3,9006$3,900Required:a) Discounted Payback @…
Q: (4B-1) FV Continuous Compounding If you receive $15,000 today and can invest it at a 6% annual rate…
A: The present value concept refers to the current worth of a future sum of money, considering the time…
Q: Project X has an upfront $3.5 lion capital which is converted into an equivalent seven year annuity…
A: Annualized capital cost refers to the total cost of an investment or asset spread out over the…
Q: An S corporation earns $4.7 per share before taxes. The corporate tax rate is 35%, the personal tax…
A: In S corporation is a type of business format in which the income is directly transferred to the…
Q: When you purchased your house 4 years ago, you took out a 300000, 30 year FRM loan at 7.5%. You also…
A: Mortgage loans are secured loans and these loans make buying of home easy because paid by equal…
Q: 48. 50. Tanner and Angela want to open a custom skateboard shop as a partnership business. They have…
A: The break-even point refers to the level of revenue of the company which just covers the costs of…
Q: Which if the following would you prefer to be buying based on yield to maturity (assume n = 25)? A)…
A: Yield to maturity is the income of the individual who holds the bond till its maturity in a…
Q: (4B-6) Continuous Compounding You have $11,572.28 in an account that has been paying an annual rate…
A: The concept of time value of money will be used here. As per the concept of time value of money the…
Q: Problem 1: You take out an amortized loan for $10,000. The loan is to be paid in equal installments…
A: The time value of money (TVM) is a fundamental financial concept that recognizes the idea that a sum…
Q: Your father helped you start saving $25 a month beginning on your fifth birthday. He always made you…
A: Here,Monthly Savings is $25Future Value of Savings is $6,528.91Time Period of Savings is 15…
Q: A bank obtains an 8-month T-bill at a discount rate of 8%. What is the simple interest rate?
A: The T-bill is referred to as the debt obligation having a maturity of one year or less and is backed…
Q: You are considering a project with cash flows of $44,500, $28,000, and $33,000 at the end of each…
A: Cash Flow for Year 1 = cf1 = $44,500Cash Flow for Year 2 = cf2 = $28,000Cash Flow for Year 3 = cf3 =…
Q: Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking…
A: The NPV of a project measures the profitability of the project by discounting its cash flow to the…
Q: You have been given the following return information for a mutual fund, the market index, and the…
A: The Treynor ratio and the Sharpe ratio are similar in that they both quantify the excess return…
Q: A customer repays a loan of 22,000 that has an effective annual interest rate of 5.15% by making…
A: We take loans to buy large ticket items that otherwise we cannot afford. The loan is then repaid by…
Q: Today, you purchased $5300 on a credit card that charges an APR rate of 22.9 percent, compounded…
A: Monthly payment refers to an amount to be paid every month for the repayment of a loan amount by the…
Q: Your uncle has said that if you agree to finish college he will give you equal payments of $3,500 at…
A: Present value is an estimate of the present value of future cash values that may be received at a…
Q: You decide to make monthly payments into a retirement fund earning 4.75% compounded monthly. Note:…
A: The concept of time value of money will be used here. As per the concept of time value of money the…
Q: A portfolio is made up of share A and share B. Share A has a standard deviation of 16% and has a…
A: Rate of return of the portfolio is the average rate of return of each security comprised in the…
Q: Sales COGS Accounts Receivables Inventory 91, 500 80,000 30,000 15,000 Accounts Payables What is the…
A: Cash conversion cycle is the period required from begining to end to receive cash amount from…
Q: Develop an amortization schedule for the loan described. (All answers should be entered in dollars.…
A: Amortization schedule refers to the format maintained for providing the loan to the borrower by the…
Q: Complete the following for the present value of an ordinary annuity. (Use Table 13.2.) Note: Do not…
A: An ordinary annuity is a series of fixed payments received or paid at a fixed interval for a defined…
Q: The hypothesis holds that future price movements are unpredictable: O A. rational expectations OB.…
A: Price movement refers to the shift in the price of any asset or security. It is caused due to many…
Q: Consider a forward contract which allows you to buy/sell a non-dividend paying stock in three…
A: Here,CurrentStock price (PV) is $99.41Risk Free Interest Rate (r) is 5.4%Time Period (t) is 3 months
Q: Compute the (1) net present value, (2) profitability index, and (3) internal rate of return for each…
A: Net present value is determined by deducting the current value of cash flows from the initial…
Q: If the market value of a capital improvement project is $1,447,024, and the bank will lend you 87.9%…
A: Capital is a term for financial asset, such as funds held in deposit accounts and/or funds obtained…
Q: Michael and Ellie plan on retiring 32 years from today. At that time, they plan to have saved the…
A: A deposit is a reserve amount of money that an individual keeps aside on a periodic basis to achieve…
Q: You find the following corporate bond quotes. To calculate the number of years until maturity,…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: You own a portfolio that has a total value of $250,000 and it is invested in Stock D with a bets of…
A: Stock D beta: 0.79Stock E beta: 1.46Total value: $250,000
You deposit $1,000 in an account earning 9.3% interest compounded daily . How much will you have in the account in 15 years? Use 360 days for a year. Round your answer to the nearest penny.
Step by step
Solved in 3 steps with 1 images
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityUse the tables in Appendix B to answer the following questions. A. If you would like to accumulate $4,200 over the next 6 years when the interest rate is 8%, how much do you need to deposit in the account? B. If you place $8,700 in a savings account, how much will you have at the end of 12 years with an interest rate of 8%? C. You invest $2,000 per year, at the end of the year, for 20 years at 10% interest. How much will you have at the end of 20 years? D. You win the lottery and can either receive $500,000 as a lump sum or $60,000 per year for 20 years. Assuming you can earn 3% interest, which do you recommend and why?You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the fifth year. B. Use the future value of $1 table in Appendix B and verity that your answer is correct.
- Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate $2,500 over the next 4 years when the interest rate is 15%, how much do you need to deposit in the account? B. If you place $6,200 in a savings account, how much will you have at the end of 7 years with a 12% interest rate? C. You invest $8,000 per year for 10 years at 12% interest, how much will you have at the end of 10 years? D. You win the lottery and can either receive $750,000 as a lump sum or $50,000 per year for 20 years. Assuming you can earn 8% interest, which do you recommend and why?You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how much will you have in the bank after one year? Calculate the amount you will have in the bank at the end of year two and continue to calculate all the way to the end of the third year. B. Use the future value of $1 table In Appendix B and verify that your answer is correct.Calculating interest earned and future value of savings account. If you put 6,000 in a savings account that pays interest at the rate of 3 percent, compounded annually, how much will you have in five years? (Hint: Use the future value formula.) How much interest will you earn during the five years? If you put 6,000 each year into a savings account that pays interest at the rate of 4 percent a year, how much would you have after five years?
- You deposit 200$ each month into an account earning 8% interest compounded monthly. Round to the nearest vent as needed. How much will you have in the account in 25 years? How much total money will you put into the account? How much total interest will you earn?You deposit $400 each month into an account earning 3% interest compounded monthly. Round to the nearest cent as needed. a) How much will you have in the account in 30 years? $ b) How much total money will you put into the account? c) How much total interest will you earn? $You deposit $320 each month into an account earning 2% interest compounded monthly. Use the TVM Solver on the TI calculator. Round to the nearest cent (two decimal places). a) How much will have accumulated in the account in 20 years? $ b) How much money will you have deposited in the account during this time? $ c) How much of the amount in the account will be interest?
- You deposit $5000 each year into an account earning 6.8% interest. How much will you have in the account in 15 years? Round your answer to the nearest cent as needed.You deposit $400 each month into an account earning 6% interest compounded monthly. How much will you have in the account in 25 years? How much total money will you put into the account? How much total interest will you earn?You deposit $2000 in an account earning 8% interest, compounded quarterly. How much will you have in the account after 11 years? Round your answer to the nearest cent.