Question

DEF Problem - You have found three investment choices for a one-year deponit: 10% APR compounded monthly, 10% APR compounded

Please do this in excel and show work.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Using excel formula

A B
1 APR(1) 10%
2 Compounding Periods 12
3 APR(2) 10%
4 Compounding Periods 1
5 APR(3) 9%
6 Compounding Periods 365
excel formula
EAR(1) 10.47% (1+B1/12)^12-1
EAR(2) 10.00% B3
EAR(3) 9.42% (1+B6/365)^365-1
Add a comment
Know the answer?
Add Answer to:
Please do this in excel and show work. DEF Problem - You have found three investment...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • airements 1 In cell D11, by using cell references, calculate the monthly interest rate of the current credit card (1...

    airements 1 In cell D11, by using cell references, calculate the monthly interest rate of the current credit card (1 pt.). 2 In cell D12, by using cell references, calculate the interest payment on the current credit card (1 pt). Note: The output of the expression or function you typed in this cell is expected as a positive number. 3 In cell D13, by using cell references, calculate the monthly interest rate of the new credit card (1 pt.) 4...

  • A: I need the answers to the question in the black square. B: I need clarification...

    A: I need the answers to the question in the black square. B: I need clarification on how the answers where found (in the blue cells) And the most important is (What is the excel formula used to find the answer in the blue cells?) . . And Its better if you solve it in Excel sheet then upload the picture here STCWTE all all & 31 11:53 STC X Problem 5-4 You are considering two ways of financing a...

  • Please include cell references. Problem 6-12 Suppose a 10-year, $1,000 bond with an 8% coupon rate...

    Please include cell references. Problem 6-12 Suppose a 10-year, $1,000 bond with an 8% coupon rate and semiannual coupons is trading for $1,034.74 Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the...

  • Problem 5-21 You have just sold your house for $1,000,000 in cash. Your mortgage was originally...

    Problem 5-21 You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 1872 years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? Complete the steps below using cell references to given data or previous...

  • plz do it through excel, thank you X == General Times New Roman - 14 -...

    plz do it through excel, thank you X == General Times New Roman - 14 - AA BIU - OA . Paste Wrap Text Merge & Center - EE $ -% Number Conditional Format as Cell Formatting Table Styles Styles Clipboard Font Alignment GH Problem 5-21 You have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800.000. The mortgage is currently exactly 1872 years old,...

  • Problem 8-18 Professor Wendy Smith has been offered the following deal: A law firm would like...

    Problem 8-18 Professor Wendy Smith has been offered the following deal: A law firm would like to retain her for an up- front payment of $50,000. In return, for the next year the firm would have access to eight hours of her time every month. Smith's rate is $550 per hour and her opportunity cost of capital is 15% per year. What does the IRR rule advise regarding this opportunity? What about the NPV rule? Complete the steps below using...

  • . BIU Alignment Font mat Painter Sard - XE Problem 6-19 Suppose that General Motors Acceptance Corporation issued a...

    . BIU Alignment Font mat Painter Sard - XE Problem 6-19 Suppose that General Motors Acceptance Corporation issued a bond with 10 years until maturity, a face value of $1,000, and a coupon rate of 7% (annual payments). The yield to maturity on this bond when it was issued was 6%. Assuming the yield to maturity remains constant, what is the price of the bond immediately before it makes its first coupon payment? Complete the steps below using cell references...

  • You have found three investment choices for a​ one-year deposit: 9.6% APR compounded​ monthly, 9.6% APR...

    You have found three investment choices for a​ one-year deposit: 9.6% APR compounded​ monthly, 9.6% APR compounded​ annually, and 8.7% APR compounded daily. Compute the EAR for each investment choice.​ (Assume that there are 365 days in the​ year.) ​(Note: Be careful not to round any intermediate steps less than six decimal​ places.) The EAR for the first investment choice is ____%. ​(Round to three decimal​ places.)The EAR for the second investment choice is _____%. ​ (Round to three decimal​...

  • You have found three investment choices for a one-year deposit: 11% APR compounded monthly, 12% APR...

    You have found three investment choices for a one-year deposit: 11% APR compounded monthly, 12% APR compounded annually, and 9% APR compounded daily. Compute the EAR for each investment choice. (Assume that there are 365 days in the year.) For the case of 11% APR compounded monthly the EAR IS %. (Round to three decimal places.) For the case of 12% APR compounded annually the EARS %. (Round to three decimal places.) For the case of 9% APR compounded daily...

  • You have found three investment choices for one year deposit: 9.5% APR compounded monthly, 9.5% APR...

    You have found three investment choices for one year deposit: 9.5% APR compounded monthly, 9.5% APR compounded annually and 8.8% APR compounded daily ((365) days. Compute the EAR for each investment choice.

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT