ASAP 2. Suppose $5,000 is invested for three years at 8% per annum (year). Calculate the...
2. Determine the future value amount of $400 invested at 6% per annum compounded quarterly for three years and five months. 3. A demand loan of $10,000 is repaid by payments of $5000 in one year, $6000 in four years, and a final payment in six years. Interest on the loan is at 10% per annum compounded quarterly during the first year, 8% per annum compounded semi-annually for the next three years and 7.5% per annum compounded annually for the...
(a) Suppose that you can invest with a continuously compounded rate of 5.25% per annum. (i) If you invest $50,000 today, how many years will it take for your investment to be worth $1 million? (ii) If you want your investment to grow to be $1 million in 10 years, how much do you need to invest today? (iii) Compute the equivalent effective 1-year rate
Question (2): (1x5-5 Marks) 1- Calculate the future value of $12,000 invested today for 3 years if your investment pays 8% compounded semiannually (1.0 Mark) 2- Calculate the present value of $9,000 received 6 years from today if your investment pays 12% compounded quarterly. (1.0 Mark) (3.0 Marks) 3- Calculate the present value of the following annuity stream: a) Ordinary annuity of $5,000 received each year for 5 years if your investment pays 5% (Imark) compounded annually. b) Ordinary annuity...
8. $1000 is invested in a saving account with an annual interest rate 4%. Find the balance of the account after 15 years in the following situations (round each answer to its nearest 100th): (i) The interest is compounded annually. (ii) The interest is compounded monthly. (iii) The interest is compounded continuously.
An investment of $3200 earns interest at 4.5% per annum compounded semi-annually for three years. At that time the interest rate is changed to 4.9% compounded monthly. How much will the accumulated value be one-and-a-half years after the change? The accumulated value is $] (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
The three-year zero rate is 7% per annum and the four-year zero rate is 8% per annum (both continuously compounded). What is the forward rate for the fourth year with continuous compounding? Answer as a percent with two decimal place accuracy.
The three-year zero rate is 7% per annum and the four-year zero rate is 8% per annum (both continuously compounded). What is the forward rate for the fourth year with continuous compounding? Answer as a percent with two decimal place accuracy.
1. Calculate the real interest rate per annum using the full Fisher equation if the nominal interest rate is 6% per annum and the inflation rate is 2% per annum. A. 3.92% B. 4.00% C. 8.00% D. 8.12% 5. Calculate the simple interest rate per to a nominal interest rate of 4% compounded monthly over a 24 period. A. 3.33% B. 4.00% C. 4.16% D. 6.67% 6. Michael made a deposit of $13,000 exactly 5 years ago into an account...
(Related to Checkpoint 5.2) (Future value) To what amount will $5,000 invested for 8 years at 9 percent compounded annually accumulate? $5,000 invested for 8 years at 9 percent compounded annually will accumulate to $. (Round to the nearest cent.)
Question 2 i. How many years will it take for an investment of $7,500 to grow to $23,000 if it is invested at 8% annually? At what rate of interest must your savings of $10,000 be compounded annually for it to grow to $22,000 in 8 years? ii. (2.5+2.5-5 marks) Question 2 i. How many years will it take for an investment of $7,500 to grow to $23,000 if it is invested at 8% annually? At what rate of interest...