Irene's uncle has given her $6,000 today. She is required to open a savings account today...
Microsoft currently has an annual coupon bond outstanding. A decrease in the market rate of interest will of the bond. Multiple Choice decrease the coupon rate increase the coupon rate increase the market price increase the time period decrease the market price Which of the following statements related to payback and discounted payback is/are correct? I. Payback is a better method of analysis than is discounted payback. II. Discounted payback is used more frequently in business than is payback III....
Emma's family has given her $54021 and today she has decided to put that money in a savings account that yields 4% per year. However, she already knows that one year from today she will have to use part of that money to pay for a $11760 expense, and another expense of $27471 two years from now. If she is planning to collect whatever is left in your savings account 4 years from today, how much money will you be...
Judy has just received $14,444 as an inheritance from her uncle and is considering ways to use the money. Judy's car is one year old, and her monthly payment is $345. She owes 48 more payments. The amount to pay off the loan is $14,400. Judy will save $2,160 in interest if she pays off her car loan now. Judy is also considering investing the $14,444 in a certificate of deposit (CD). She is guaranteed a return of 4% on...
1. Joanne has a $2,800 overdue debt for medical books and supplies at Joe's Bookstore. She has only $900 in her checking account and doesn't want her parents to know about this debt. Joe's tells her that she may settle the account in one of two ways since she can't pay it all now: 1. Pay $900 now and $2,300 when she completes her residency, two years from today. 2. Pay $3,700 one year after completion of residency, three years...
Part A Your sister is celebrating her 30th birthday. As the party winds down she asks you for some help. She wants to start saving for her retirement at age 60. She tells you that ideally she would like to withdraw $50,000 on an annual basis for 20 years starting the year after she retires. She says that she would be comfortable putting aside some money each year in an annuity and believes that she would be able to earn...
Consider the following 5-years investment table of Agus's cash flow with required return rate j=11% (RRR). Discounted is a discount factor based on RRR. Contribution is amount of money that Agus paid to start the business (investment). Whereas, return is amount of money that Agus received from the investment. Furthermore, PV Contrib is present value of Contribution based on RRR, then Net Cash Flow is Return minus Contribution. Moreover, Discounted Cash Flow is present value of Net Cash Flow based...
1. Jennifer purchased 200 shares of stock at $40 using her 70% margin account. Her maintenance margin is 40%. Jennifer has no othersecurities in her account. At what price per share will she receive a margin call? 2. An index consists of the following securities. What is the value-weighted index return? Shares Outstanding Beginning Ending Share Price $28.50 $31.00 Stock Morgan, Inc. 5,000 Taylor, Ltd. 7,500 $25.00 $28.00 A portfolio consisting of four stocks is expected to produce returns of...
5. Your broker promises that if you give her $15,000 today she will return $30,000 to you in five years. To the nearest percent, what annual interest rate is being offered? 6. How much money would you have to put away at the end of each year to have $1,250,000 when you retire 42 years from now if you can earn 5% on your money? 7. How much can be accumulated if $500 per month is deposited for the next...
Today is 1 January 2019. Kim is looking for an investment that will give her $500,000 in 5 years’ time so that she will have a sufficient deposit to purchase a $2.5m house in Sydney. Currently she has saved about $380,000 to contribute to the deposit. She has started looking at Treasury bonds as she thinks they are a relatively low risk investment. However, she did not study finance at University so does not have a good understanding of Treasury...
please help, show work. 5.) Jennifer has been given money for her birthday. She puts her money in a savings account offers an annual interest rate of 4.50%, compounded monthly. What is the effective annual rate (EAR) on the saving account? 6.) An individual invests $10,000 today in an investment that is expected to be worth $20,000 in 6 years. What annualized rate of return is the investor expecting to receive on the investment? 7.) A college graduate just bought...