Homework Answers
Answer(19): Initial Investment is the correct option.
Initial investment is the amount that is invested initially, interest and dividend are given on that. That investment amount grows based on time value of money.
Answer(20): False.
If investor wants to invest into a risky security and he is ready to take higher risk, his return will also be higher. High risk, high gain. Low risk, low gain.
Answer(21): 10 year CD.
Certificate deposit is offered by commercial banks and credit unions. Individual gives his lump sum amount to bank and they provide interest over it. Long term CDs provide higher interest.
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Question 19 2.5 pts The dollar amount that is an account which is earning interest or...
Q10: Which is not a measure to help evaluate and select among projects? PI YTM PBP...
Q10: Which is not a measure to help evaluate and select among projects? PI YTM PBP IRR Q11: Let cells A1 to A3 contain:Risk-Free Rate (A1), beta of the investment (A2), Market Risk Premium (A3). The Capital Asset Pricing Model (CAPM) can be calculated as: =A1+A3 =A1-A3 =A1+A2*A3 =A1-A2*A3 Q12: Which is not a procedure of constructing a frequency distribution? Assign observations to the appropriate interval Calculate the absolute frequency Define the intervals Count the observations Q13: You have a...
1. Calculate the compound amount when S1500 is deposited in an account earning an annual interest...
1. Calculate the compound amount when S1500 is deposited in an account earning an annual interest rate of 5%, compounded monthly, for 18 months. 2, How much money should be invested in an account that earns 6% annual interest, com- pounded monthly, in order to have $15, 000 in 5 years? 3. How much interest is earned on a $2000 deposit for 2 years at a 0.12% monthly interest rate. compounded daily?
Question 2. (12 pts) You have extra $5,000 to invest. You do not need the money...
Question 2. (12 pts) You have extra $5,000 to invest. You do not need the money now but will need it after 3 years, so you plan to cash your investment at the end of 3 year. Usually your investments earn 7% annual interest compounded annually and you'd like to consider it as your minimum acceptable rate of return. You are considering several investment opportunities: Option 1. Depositing your money on the high interest savings account that earns 0.58% interest...
QUESTION 2 You deposit $10,000 in an account earning 5% interest compounded weekly. How much will...
QUESTION 2 You deposit $10,000 in an account earning 5% interest compounded weekly. How much will you have in the account after 17 years? How much of the amount was interest earned?
If Jackson deposits $100 at the end of each month in a savings account earning interest...
If Jackson deposits $100 at the end of each month in a savings account earning interest at a rate of 3%/year compounded monthly, how much will he have on deposit in his savings account at the end of 6 years, assuming he makes no withdrawals during that period? (Round your answer to the nearest cent.)
1. [4 pts) Find the present value of an investment that is worth $19,513.75 after earning...
1. [4 pts) Find the present value of an investment that is worth $19,513.75 after earning 3% simple interest for 2. [4 pts] Mr. Clopu buys an 18-month CD that pays 42% simple interest for $5,000. Find the value of the CD at the end of its term. 3. [4 pts) Find the maturation value of $2600 borrowed at 3.9% simple interest for 200 days. 4. The table below shows the activity on the credit card statement of Miss Pepper...
Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when...
Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when you buy a certificate of deposit than it does when you invest it in a regular savings account. Most certificates eam interest compounded daily. The annual yield is the rate at which your money earns simple interest in one year. INTEREST EARNED - AMOUNT - ORIGINAL PRINCIPAL INTEREST FOR ONE YEAR PRINCIPAL ANNUAL YIELD - Use the table below to answer the problems. AMOUNT...
4 pts The principal represents an amount of money deposited in a savings account subject to...
4 pts The principal represents an amount of money deposited in a savings account subject to compound Interest at the given rate. Find how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was earned. Au p(2.5) Principal: $3500 Rate: 4.5% Compounded: monthly Time: 4 years amount in account: $3552.2; interest earned: $52,80 amount in account: $4865.38; interest earned: 5673.82 amount in account: $3660.79; interest earned:...
1) You plan to deposit $200 each month into an IRA earning 0.25% interest monthly. How...
1) You plan to deposit $200 each month into an IRA earning 0.25% interest monthly. How much will you have in your account in 10 years? 2) You just graduated from college and landed your first "real" job, which pays $68,000 a year. In 9 years how much will you need to earn to maintain the same purchasing power if inflation is 0.75% per year? 3) Calculate the future value of $13,000 earning 9% for 35 years. 4) You have...
D Question 28 3 pts Your 5 year bank Certificate of Deposit just matured and the...
D Question 28 3 pts Your 5 year bank Certificate of Deposit just matured and the account balance is $4,701.58. If the account earned 6.5% interest compounded continuously for the entire 5 year period what was the amount of your initial investment?
1. Calculate the compound amount when S1500 is deposited in an account earning an annual interest rate of 5%, compounded monthly, for 18 months. 2, How much money should be invested in an account that earns 6% annual interest, com- pounded monthly, in order to have $15, 000 in 5 years? 3. How much interest is earned on a $2000 deposit for 2 years at a 0.12% monthly interest rate. compounded daily?
Question 2. (12 pts) You have extra $5,000 to invest. You do not need the money now but will need it after 3 years, so you plan to cash your investment at the end of 3 year. Usually your investments earn 7% annual interest compounded annually and you'd like to consider it as your minimum acceptable rate of return. You are considering several investment opportunities: Option 1. Depositing your money on the high interest savings account that earns 0.58% interest...
QUESTION 2 You deposit $10,000 in an account earning 5% interest compounded weekly. How much will you have in the account after 17 years? How much of the amount was interest earned?
If Jackson deposits $100 at the end of each month in a savings account earning interest at a rate of 3%/year compounded monthly, how much will he have on deposit in his savings account at the end of 6 years, assuming he makes no withdrawals during that period? (Round your answer to the nearest cent.)
1. [4 pts) Find the present value of an investment that is worth $19,513.75 after earning 3% simple interest for 2. [4 pts] Mr. Clopu buys an 18-month CD that pays 42% simple interest for $5,000. Find the value of the CD at the end of its term. 3. [4 pts) Find the maturation value of $2600 borrowed at 3.9% simple interest for 200 days. 4. The table below shows the activity on the credit card statement of Miss Pepper...
Certificates of Deposit and Effective Annual Yield Your money earns interest at a higher rate when you buy a certificate of deposit than it does when you invest it in a regular savings account. Most certificates eam interest compounded daily. The annual yield is the rate at which your money earns simple interest in one year. INTEREST EARNED - AMOUNT - ORIGINAL PRINCIPAL INTEREST FOR ONE YEAR PRINCIPAL ANNUAL YIELD - Use the table below to answer the problems. AMOUNT...
4 pts The principal represents an amount of money deposited in a savings account subject to compound Interest at the given rate. Find how much money will be in the account after the given number of years (Assume 360 days in a year.), and how much interest was earned. Au p(2.5) Principal: $3500 Rate: 4.5% Compounded: monthly Time: 4 years amount in account: $3552.2; interest earned: $52,80 amount in account: $4865.38; interest earned: 5673.82 amount in account: $3660.79; interest earned:...
D Question 28 3 pts Your 5 year bank Certificate of Deposit just matured and the account balance is $4,701.58. If the account earned 6.5% interest compounded continuously for the entire 5 year period what was the amount of your initial investment?
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