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FV= PV(1+ R/(n*100))^n
R= annual rate of interest=0.08
n= number of compounding periods i.e 1 in our case because compounded annually
FV= Future value
PV= Present Value i.e 5546
therefore:
FV= 5546*(1+0.08)^7.8 = 10,108.46
Please adhere to the rounding instructions(in red) for calculations and final answer. If the answer is...
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 2 0.5 pts What is the future value in 12 years of $604 invested in an account with a stated annual interest rate of 6.3%, compounded semi-annually? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation
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| Question 4 0.5 pts What is the future value in 6 years of $8899 invested in an account with a stated annual interest rate of 6.3%, compounded continuously? (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Discounted Cash Flow Valuation
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calculations and final answer. If the answer is not exact, it will
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Question 3 0.5 pts What is the future value in 5 years of $7605 invested in an account with a stated annual interest rate of 5.9%, compounded monthly? (Round answer to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation
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calculations and final answer. If the answer is not exact, it will
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D | Question 10 1 pts A prestigious investment bank has designed a new security that pays a quarterly dividend of $2.81 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the stated annual interest rate is 7.27%, compounded quarterly? (Round answer to 2 decimal places. Do not...
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calculations and final answer. If the answer is not exact, it will
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Question 8 1 pts First National Bank charges 11.20 % compounded monthly on its business loans. First Unit Bank charges 11.73%, compounded semiannually Calculate the EAR for First United Bank. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation ed
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D | Question 7 1 pts First National Bank charges 11.13 % compounded monthly on its business loans. First United Bank charges 11.53%, compounded semiannually. Calculate the EAR for First National Bank. (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations). Topic: Discounted Cash Flow Valuation
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D | Question 6 2 pts Investment X offers to pay you $2910 per year for 15 years, whereas Investment Y offers to pay you $8660 per year for 3 years. Both investments have a discount rate of 12.3%. Calculate the present value for Investment Y. (Round answer to 2 decimal places. Do not round intermediate calculations)...
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
D | Question 5 2 pts Investment X offers to pay you $1332 per year for 14 years, whereas Investment Y offers to pay you $6694 per year for 3 years. Both investments have a discount rate of 8.9%. Calculate the present value for Investment X. (Round answer to 2 decimal places. Do not round intermediate calculations)....
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 6 2 pts Investment X offers to pay you $2910 per year for 15 years, whereas Investment Y offers to pay you $8660 per year for 3 years. Both investments have a discount rate of 12.3%. Calculate the present value for Investment Y. (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Discounted...
Please adhere to the rounding instructions(in red) for
calculations and final answer. If the answer is not exact, it will
be incorrect. Thanks!
Question 6 2 pts Investment X offers to pay you $2910 per year for 15 years, whereas Investment Y offers to pay you $8660 per year for 3 years. Both investments have a discount rate of 12.3%. Calculate the present value for Investment Y. (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Discounted...