Question 3 (1 point) Calculate the Effective Annual Rate (EAR): $500 today invested in a financial...
Calculate the Effective Annual Rate (EAR): $500 today invested in a financial tool with a rate of return of 12% that compounds 12 times a year for 8 years. 3 6 12.0000% 1.0046% 9 1.0000% 12.6825% Question 4 (1 point) Calculate the future value (FV); Yearly payments of $50 starting on year 1 in a financial tool with a rate of return of 10% that compounds 1 times a year for 5 years. $330.78 $305.26
Question 1 (1 point) Calculate the future value (FV) of: $1,250 today invested in a financial tool with a rate of return of 8% that compounds once a year for 5 years. $1,858.89 $1,353.25 $1,836.66 $1,350.00 Question 2 (1 point) Calculate the future value (FV) of: $500 today invested in a financial tool with a rate of return of 12% that compounds 12 times a year for 8 years. 20 PWPXO
Question 2 (1 point) Calculate the future value (FV) of: $500 today invested in a financial tool with a rate of return of 12% that compounds 12 times a year for 8 years. $1,299.64 $1,237.98 $563.00 $1,947.99
Your answer: Question 8 (CHAPTER 6) The EAR, or the effective annual rate, for a bank's savings account is 8%. The interest compounds daily. The APR, or the stated rate, equals: (a) 7.77% (b) 7.72% (c) 7.70% (d) 5.87% (e) 5.84% In general, the lower the compounding per year, the higher the APR. This statement is: (a) True (b) False
Question 4 (1 point) Calculate the future value (FV): Yearly payments of $50 starting on year 1 in a financial tool with a rate of return of 10% that compounds 1 times a year for 5 years. $330.78 $305.26 $380.78 $260.20
Tom invests $500 at an effective annual discount rate of 6%. The inflation is 3% every year. Calculate the purchasing power (measured in dollars) in 10 years. Question 4 Tom is interested in buying a U.S. Treasury Bill matured in 180 days with a quoted discount of 1.2%. If the face value of the bill is $100, calculate the price of the bill assuming a 360-day year.
9) Twelve thousand dollars is invested today. If the annual inflation rate return on investment (constant dollars) (i) is 10%, what will be the approximate future value of the investment, adjusted for inflation (actual dollars), in five years? a) $25,800 b) $32,200 c) $42,000 d) $43,100 is 6% and the effective annual
1. Seven years ago, you put $500 in a bank account earning 6%/year. What is the bank account balance today? 2. You want to double your money in 5 years. What rate of return do your need to earn? 3. At 4% per year, how long does it take for $500 to grow to $750? 4. What is the present value of an annuity due that pays $1000 per month for two years if the interest rate is 6%/year compounded...
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...
1) Simple interest is akin to the effective annual rate (EAR) and compound interest is akin to the annual percentage rate (APR). True False 2) If you were required to estimate the average return for one category of securities for the coming year, history tells us that you should have the greatest degree of confidence estimating which of the following? a) small-company stocks b) large-company stocks c) long-term government bonds d) 3 month treasury bills 3) Evidence from the 50...