Homework Answers
Ans 25.8926%
| FV = | Future Value |
| PV = | Present Value |
| r = | rate of interest |
| n= | no of period |
| FV = | PV (1 + r )n |
| 20000= | 2000*(1+r%)^10 |
| 10 = | (1+r%)^10 |
| r = | 25.8926% |
Add Answer to:
Problem 34 Intro You have $2,000 in your savings account, and want to buy a car...
Intro You make a one-time investment of $600 and leave it for 5 years, earning an...
Intro You make a one-time investment of $600 and leave it for 5 years, earning an annual interest rate of 9%. B Attempt 1/10 for 8 pts. Part 1 How much interest will you have earned after 5 years? No decimals Submit B Attempt 1/10 for 8 pts. Part 2 If you leave the eitire amount in your account for another 5 years and earn the same interest rate, how much interest will you earn over the second 5-year period?...
Intro You invest $2,000 in a 4-year certificate of deposit (CD) that pays 4% interest, compounded...
Intro You invest $2,000 in a 4-year certificate of deposit (CD) that pays 4% interest, compounded annually Part 1 How much money will you have when the CD matures? 8 - Attempt 1 /10 for 10 pts. No decimals Submit Intro You've just deposited $8,000 in a savings account to save for a new car that you want to buy in 9 years. Part 1 How much money will you have in 9 years if the interest rate is 6%?...
Problem 9 Intro You took out a loan to buy a new car. The monthly interest...
Problem 9 Intro You took out a loan to buy a new car. The monthly interest rate on the loan is 2.5%. You have to pay $280 every month for 60 months. Part 1 B Attempt 1/10 for 8 pts. What is the present value of the cash flows if it's an ordinary annuity? No decimals Submit Part 2 What is the future value of the cash flows if it's an ordinary annuity? 8 - Attempt 1 /10 for 8...
Problem 25 >> Intro You're about to buy a new car for $10,000. The dealer offers...
Problem 25 >> Intro You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $877 3 every month for the next 12 months. Since you pay $8773 12 = $10.528 in total, the dealer claims that the loan's annual interest rate is (10,528-10.000710,000 = 5.28% Part 1 18 Attempt 9/10 for 10 pts. What is the actual effective annual rate? 3+ decimals Submit IB Attempt 7/10 for 10 pts Part 2...
Problem 10 Intro Better Tires Corp. is planning to buy a new tire making machine for...
Problem 10 Intro Better Tires Corp. is planning to buy a new tire making machine for $80,000 that would save it $80,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The appropriate cost of capital for this project is 15% and the tax rate is 21%. Part 1 18 - Attempt 1/5 for 10 pts....
Intro You're about to buy a new car for $10,000. The dealer offers you a one-year...
Intro You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $849.67 every month for the next 12 months. Since you pay $849.67 * 12 = $10,196 in total, the dealer claims that the loan's annual interest rate is (10,196-10,000)/10,000 = 1.961%. Part 1 Attempt 8/10 for 5.8 pts. What is the actual effective annual rate? 4+ decimals Submit Part 2 Attempt 3/10 for 9.8 pts. What rate should the dealer...
ntro You currently don't have a car, but rent a car that's parked just outside your house whenever you need one. Your annual expenditure on rental cars is $2,300. You've now consideri...
ntro You currently don't have a car, but rent a car that's parked just outside your house whenever you need one. Your annual expenditure on rental cars is $2,300. You've now considering purchasing a car that would give you the same level of convenience as your current life style. The car costs $25,000 and can be sold for $5,000 after 10 years. You'd purchase the car with money from your savings account which always earns an interest rate of 6%...
Problem 17 Intro You took out a mortgage for $300,000. You need to pay $2,937 every...
Problem 17 Intro You took out a mortgage for $300,000. You need to pay $2,937 every month for 15 years. Attempt 3/10 for 10 pts. Part 1 What is the monthly interest rate? 4+ decimals Submit
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and...
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and the risk-free asset. Security Stock 1 Stock 2 Risk-free asset E() 0.0881 0.0807 0.04 Beta Investment 1.3 $20,000 1.1 ? You want your portfolio to be as risky as the market overall. Part 1 Attempt 1/5 for 10 pts. What is the expected return of your portfolio? 3+ decimals Submit
Problem 4 Intro Lomack Company's bonds have a 11-year maturity, a 10% coupon, paid semiannually, and...
Problem 4 Intro Lomack Company's bonds have a 11-year maturity, a 10% coupon, paid semiannually, and a par value of $1,000. The market interest rate is 3%, with semiannual compounding. Part 1 What is the bond's price (in $)? B Attempt 1/10 for 10 pts. No decimals Submit Problem 5 Intro A corporate bond has 16 years to maturity, a face value of $1,000, a coupon rate of 4.9% and pays interest twice a year. The annual market interest rate...
Intro You make a one-time investment of $600 and leave it for 5 years, earning an annual interest rate of 9%. B Attempt 1/10 for 8 pts. Part 1 How much interest will you have earned after 5 years? No decimals Submit B Attempt 1/10 for 8 pts. Part 2 If you leave the eitire amount in your account for another 5 years and earn the same interest rate, how much interest will you earn over the second 5-year period?...
Intro You invest $2,000 in a 4-year certificate of deposit (CD) that pays 4% interest, compounded annually Part 1 How much money will you have when the CD matures? 8 - Attempt 1 /10 for 10 pts. No decimals Submit Intro You've just deposited $8,000 in a savings account to save for a new car that you want to buy in 9 years. Part 1 How much money will you have in 9 years if the interest rate is 6%?...
Problem 9 Intro You took out a loan to buy a new car. The monthly interest rate on the loan is 2.5%. You have to pay $280 every month for 60 months. Part 1 B Attempt 1/10 for 8 pts. What is the present value of the cash flows if it's an ordinary annuity? No decimals Submit Part 2 What is the future value of the cash flows if it's an ordinary annuity? 8 - Attempt 1 /10 for 8...
Problem 25 >> Intro You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $877 3 every month for the next 12 months. Since you pay $8773 12 = $10.528 in total, the dealer claims that the loan's annual interest rate is (10,528-10.000710,000 = 5.28% Part 1 18 Attempt 9/10 for 10 pts. What is the actual effective annual rate? 3+ decimals Submit IB Attempt 7/10 for 10 pts Part 2...
Problem 10 Intro Better Tires Corp. is planning to buy a new tire making machine for $80,000 that would save it $80,000 per year in production costs. The savings would be constant over the project's 3-year life. The machine is to be linearly depreciated to zero and will have no resale value after 3 years. The appropriate cost of capital for this project is 15% and the tax rate is 21%. Part 1 18 - Attempt 1/5 for 10 pts....
Intro You're about to buy a new car for $10,000. The dealer offers you a one-year loan where you pay $849.67 every month for the next 12 months. Since you pay $849.67 * 12 = $10,196 in total, the dealer claims that the loan's annual interest rate is (10,196-10,000)/10,000 = 1.961%. Part 1 Attempt 8/10 for 5.8 pts. What is the actual effective annual rate? 4+ decimals Submit Part 2 Attempt 3/10 for 9.8 pts. What rate should the dealer...
ntro You currently don't have a car, but rent a car that's parked just outside your house whenever you need one. Your annual expenditure on rental cars is $2,300. You've now considering purchasing a car that would give you the same level of convenience as your current life style. The car costs $25,000 and can be sold for $5,000 after 10 years. You'd purchase the car with money from your savings account which always earns an interest rate of 6%...
Problem 17 Intro You took out a mortgage for $300,000. You need to pay $2,937 every month for 15 years. Attempt 3/10 for 10 pts. Part 1 What is the monthly interest rate? 4+ decimals Submit
Problem 9 Intro You have $100,000 to invest and want to choose between two stocks and the risk-free asset. Security Stock 1 Stock 2 Risk-free asset E() 0.0881 0.0807 0.04 Beta Investment 1.3 $20,000 1.1 ? You want your portfolio to be as risky as the market overall. Part 1 Attempt 1/5 for 10 pts. What is the expected return of your portfolio? 3+ decimals Submit
Problem 4 Intro Lomack Company's bonds have a 11-year maturity, a 10% coupon, paid semiannually, and a par value of $1,000. The market interest rate is 3%, with semiannual compounding. Part 1 What is the bond's price (in $)? B Attempt 1/10 for 10 pts. No decimals Submit Problem 5 Intro A corporate bond has 16 years to maturity, a face value of $1,000, a coupon rate of 4.9% and pays interest twice a year. The annual market interest rate...
Most questions answered within 3 hours.
-
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 4 minutes ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 20 minutes ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 3 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 4 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 4 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 4 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 4 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 4 hours ago -
A manufacturer of banana chips would like to know whether its
bag filling machine works correctly...
asked 4 hours ago -
Complete the chapter case, "Turnover Analysis".
Chapter Case
Turnover Analysis
You recently completed your company’s new...
asked 4 hours ago -
What is the pH of solutions having the following H3O+
concentrations? Identify each as acidic, basic,...
asked 5 hours ago -
How does over-voltage of the diode usually occur?
asked 5 hours ago