Your Mark: Problem #10: A person's savings earns an effective annual rate of return of 11%. Income tax is paid on the interest earned at a rate of 40%. If the inflation rate is 4% per year, what is the annual after-tax real rate of return? Problem -10: CU Ciben Answer as a percentage. correct to 2 decimals: om #10 for Grading

Your Mark: Problem #10: A person's savings earns an effective annual rate of return of 11%. Income tax is paid on the interest earned at a rate of 40%. If the inflation rate is 4% per year, what is the annual after-tax real rate of return? Problem -10: CU Ciben Answer as a percentage. correct to 2 decimals: om #10 for Grading

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 22PROB

See similar textbooks

Similar questions

Suppose that a savings account pays an effective rate of interest of 11.7 percent. What is the equivalent annual compound interest rate if interest is compounded semi-annually? Answer = %?
Suppose you invest $1,500 in an account paying 6% interest per year. How much of this balance corresponds to interest on interest earned in the last (7th) period? (Dollar figures should be approximated to the nearest cent of a dollar, while rates should be expressed in percentage terms without using the "%" symbol and approximated to the nearest second decimal place.)
Suppose a savings account has a nominal rate of 3.83% and interest is compounded monthly. What is the account's effective annual yield? 7 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 11 * M D 4 % EEEE 5 hp > 6 no
Assume the average management cost per account per year is $200 and the average fees earned per account per year is $170. The average annual size of account is $1800. What is the average implicit interest rate (round to two decimals)? Select one: a. 4.86% b. 1.67% c. 15% d. -1.67%
8. Computing APY. What would be the annual percentage yield for a savings account that earned $56 in interest on $800 over the past 365 days? pe here to search Cop 17 10 16 40 12 3 7. 4. 96 立 %24 3. %23
You borrow money on a self liquidating installment loan (equal payments at the end of each year, each payment is part principal part interest) Loan amount Interest Rate $632,000 15.5% Life 49 years Date of Loan January 1, 2021 Use the installment method - not straight line Do NOT round any interrmediate numbers. Do NOT turn this into a monthly problem. Do NOT put in minus signs, answer all positive numbers.
A saving account earns a nominal rate i©) = 0.06 . If the income tax of the earnings from this account is at 25%, and suppose the annual inflation is at 2.4%, what is the annual after tax real rate of return? 0.0216 0.0275 0.0205 0.0366
1. If the stated annual rate of interest compounded annually is 8% then what is the equivalent annual rate compounded daily? Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks!
Problem 8. What is the equivalent worth in year 5 of the following series of income and disbursements, if the interest rate is 10% per year? Year Income, S 0 0 1-5 6000 6-8 6000 9-14 8000 Answer: Equation: CFD: Expense, S 9000 6000 3000 5000
Given an interest rate of 4.0% compounded monthly, determine the effective rate of interest. Answer as a percentage rounded to two decimal places. reff = Check %
4. What is the effective annual interest rate i A savings account with 4% annual interest rate compounded monthly?
A year ago, you invested $1,000 in a savings account that pays an annual interest rate of 6%. What is your approximate annual real rate of return if the rate of inflation was 2% over the year? A. 6% B. 4% C. 2% D. 3%