what is the formula computing the interest rate on an investment?
Homework Answers
Assume an investment of I at the beginning of the period.
Let r be the rate of interest per compounding period and N be the number of years
Then, the amount A at the end of the compounding period after N years
A = I *(1+r)^N
Where Compond Interest , CI = A - I
Interest Rate on the investment , r = (A / I)^1/N -1
The formula for computing the risk premium is the: The formula for computing the risk premium...
The formula for computing the risk premium is the: The formula for computing the risk premium is the: a. security's return plus the risk-free rate. b. expected return plus the risk-free rate. c. security's return minus the market rate. d. market rate minus the inflation rate. e. expected return minus the risk-free rate.
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount...
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount of the allocation base - Estimated total manufacturing overhead cost True or False True False
11. What is the required rate of return of this investment using the CAPM formula? a....
11. What is the required rate of return of this investment using the CAPM formula? a. Risk free rate of 5 year treasury bills is 2.5% b. Market return is 7.2% c. Beta of the investment is 1.6 d. What if the Beta is .6 instead?
Use the compound interest formula A P(1 ry to find the annual interest rate, r, if...
Use the compound interest formula A P(1 ry to find the annual interest rate, r, if in 2 years an investment of $6,000 grows to $7,260 The rate is %.
Exhibit: Saving, Investment, and the Interest Rate 1 Saving. S Real interest rate, Desired investment S...
Exhibit: Saving, Investment, and the Interest Rate 1 Saving. S Real interest rate, Desired investment S Saving investment The economy begins in equilibrium at point E, representing the real interest rate at which saving S; equals desired investment Is What will be the new equilibrium combination of real interest rate, saving, and investment if the government cuts spending, holding other factors constant? O point A O point O point D O point B
Computing Future Investment Value Problem Description: Write a method that computes future investment value at a...
Computing Future Investment Value Problem Description: Write a method that computes future investment value at a given interest rate for a specified number of years. The future investment is determined using the following formula: 12 futurelnvestmentValue investmentAmountx(1+ monthlylnterestRate) Use the following method header: publie static double futureInvestnentValue double investnentAmount, double monthlyInterestRate, int years) For example, futur Investmentvalue( 1eeee, อ.es/12, 5) returns 12833.59 Write a test program that prompts the user to enter the investment amount (e.g. 1000) and the interest...
If the rate of inflation is 4.4%, what nominal interest rate is necessary for you to earn a 3.9% real interest rate on your investment?
If the rate of inflation is 4.4%, what nominal interest rate is necessary for you to earn a 3.9% real interest rate on your investment?
D. equal to the market rate of interest when an investment is made. 49. Compounding refers...
D. equal to the market rate of interest when an investment is made. 49. Compounding refers to the A. calculation of after tax interest returns. B. internal rate of return a firm ears on an investment. C. real interest return after taxes. D. process of earning interest on both the principal and the interest of an investment. 50. Which formula below best expresses the real interest rate, (c)? A. i = r - Te B. r= i + Tre C....
What is the real interest rate if the current inflation rate is 5% and your investment...
What is the real interest rate if the current inflation rate is 5% and your investment pays 12.2%? PLEASE TRY TO BE A SIMPLE AS POSSIBLE, preferably using excel!
What is the Investment element in Aggregate Demand? What role does the interest rate play in...
What is the Investment element in Aggregate Demand? What role does the interest rate play in determining the level of Investment?
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total amount of the allocation base - Estimated total manufacturing overhead cost True or False True False
11. What is the required rate of return of this investment using the CAPM formula? a. Risk free rate of 5 year treasury bills is 2.5% b. Market return is 7.2% c. Beta of the investment is 1.6 d. What if the Beta is .6 instead?
Use the compound interest formula A P(1 ry to find the annual interest rate, r, if in 2 years an investment of $6,000 grows to $7,260 The rate is %.
Exhibit: Saving, Investment, and the Interest Rate 1 Saving. S Real interest rate, Desired investment S Saving investment The economy begins in equilibrium at point E, representing the real interest rate at which saving S; equals desired investment Is What will be the new equilibrium combination of real interest rate, saving, and investment if the government cuts spending, holding other factors constant? O point A O point O point D O point B
Computing Future Investment Value Problem Description: Write a method that computes future investment value at a given interest rate for a specified number of years. The future investment is determined using the following formula: 12 futurelnvestmentValue investmentAmountx(1+ monthlylnterestRate) Use the following method header: publie static double futureInvestnentValue double investnentAmount, double monthlyInterestRate, int years) For example, futur Investmentvalue( 1eeee, อ.es/12, 5) returns 12833.59 Write a test program that prompts the user to enter the investment amount (e.g. 1000) and the interest...
D. equal to the market rate of interest when an investment is made. 49. Compounding refers to the A. calculation of after tax interest returns. B. internal rate of return a firm ears on an investment. C. real interest return after taxes. D. process of earning interest on both the principal and the interest of an investment. 50. Which formula below best expresses the real interest rate, (c)? A. i = r - Te B. r= i + Tre C....
Most questions answered within 3 hours.
-
An object is located 7.10 cm in front of a mirror. The virtual
image is located...
asked 8 minutes ago -
Write a program in python that lets the user play the game Rock,
Paper, Scissors against...
asked 1 hour ago -
A car starts from rest on a curve with a radius of 150 m and
tangential...
asked 3 hours ago -
In Star Wars both the Storm Troopers and Droid Army are
notoriously bad shots. In order...
asked 7 hours ago -
when buffers react with h+ or oh-, do the ratio of conjugate
base to acid and...
asked 7 hours ago -
A population of values has a normal distribution with μ=207.3
and σ=35.8. A random sample of...
asked 7 hours ago -
An unknown solution was treated with H2SO4 and refluxed for 2
hours. The mixture was then...
asked 7 hours ago -
Let x be the age of a licensed driver in years. Let
y be the percentage...
asked 8 hours ago -
System.out.print( "Barrel\t"+"of"+"Laughs" );
asked 8 hours ago -
Need a 1,000 word self explanatory essay on how
characteristics of the functional, matrix & bureaucracy...
asked 8 hours ago -
(Could you explain how I can answer the question and what the
equation I will use)....
asked 8 hours ago -
The ΔGf0 values for HCO3- (aq),
CO32-(aq), and H+(aq) are -587.06,
-528.10 and 0 kJ mol-1,...
asked 8 hours ago