if a security currently worth 9200 will be worth 11,193.21 5 years in the future what...
if a security currently worth 9200 will be worth 11,193.21 5 years in the future what is the implied interest rate the investor will earn on the security assuming that no additional deposits or withdrawls are made.
Homework Answers
The equation connecting Present value, PV and Future Value, FV of a security, assuming that no additional deposits or withdrawls are made, is given by
PV = FV / (1+ R)N
where R = interest rate and N is the period.
Hence, 9,200 = 11,193.21 / (1 + R)5
Hence, R = (11,193.21 / 9,200)1/5 - 1 = 4.00%.
Hence, the implied interest rate the investor will earn on the security = R = 4.00% per annum.
Add Answer to:
if a security currently worth 9200 will be worth 11,193.21 5
years in the future what...
4. Finding the interest rate and the number of years The future value and present value...
4. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $16, 124.31 three years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 8.00% 6.40% 7.94% 1.26% for this...
4. Finding the interest rate and the number of years
4. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $2,000 will be worth $3,427.65 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 8.00% 6.40% 1.71% 5.83%
Attempts: Average be number of years 4. Finding the interes Aa The future value and pre...
Attempts: Average be number of years 4. Finding the interes Aa The future value and pre correspond to present and quations also help in finding the interest rate and the number of years that value calculations. If a security currently worth $12,800 will be worth $18,807.40 five years in the future, what is the implied interest rate the investor will earn on the setsrity-assuming that no additional deposits or withdrawals are made? O O 8.00% 0.29% 1.47% 6.40% If an...
10. Finding the interest rate and the number of years The future value and present value...
10. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $10,000 will be worth $14,693 five years in the future, assuming that no additional deposits or withdrawals are made, what is the Implied interest rate the investor will earn on the security? O 4.80% O 6.00% O 6.40% O...
MInbox (X HubSpoX M BYOB SLX M BYOBB X J Home X Assignex Mind Tax ng...
MInbox (X HubSpoX M BYOB SLX M BYOBB X J Home X Assignex Mind Tax ng Cengage Cortatic/b/g/eve in he doggy Inted 5565224521/09347990 2 8 SEN CENGAGE MINDTAP Assignment: Chapter 04. Time Value of Money 6. Finding the interest rate and the number of years Аа Аа аа The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations If a security currently worth...
What is the future worth of a series of equal year-end deposits of $3,500 for 11...
What is the future worth of a series of equal year-end deposits of $3,500 for 11 years in a savings account that earns 13% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? Click the icon to view the interest factors for discrete compounding when i = 13% per year. (a) The future worth of a series of equal year...
What is the future worth of a series of equal year-end deposits of $2.900 for 10...
What is the future worth of a series of equal year-end deposits of $2.900 for 10 years in a savings account that earns 7% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? Click the icon to view the interest factors for discrete compounding when i: 7% per year. (a) The future worth of a series of equal year-end deposits...
What is the future worth of a series of deposits of $1,123 for 25 years into...
What is the future worth of a series of deposits of $1,123 for 25 years into a savings account that receives 8% annual interest?
A security is currently worth N$62 million. An investor plans to purchase this asset in two...
A security is currently worth N$62 million. An investor plans to purchase this asset in two years and is concerned that the price may have risen by then. To hedge this risk, the investor enters into a forward contract to buy the asset in two years. Assume that the risk-free rate is 4.75 percent. Four months into the contract, the price of the asset is N$59.2 million. Calculate the gain or loss that has accrued to the forward contract.
A)What is the present value of a security that will pay $45,000 in 20 years if...
A)What is the present value of a security that will pay $45,000 in 20 years if securities of equal risk pay 6% annually? Do not round intermediate calculations. Round your answer to the nearest cent. B)if you deposit $7,000 in a bank account that pays 5% interest annually, how much will be in your account after 5 years? Do not round intermediate calculations. Round your answer to the nearest cent. C)Your parents will retire in 24 years. They currently have...
4. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $16, 124.31 three years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 8.00% 6.40% 7.94% 1.26% for this...
4. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $2,000 will be worth $3,427.65 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 8.00% 6.40% 1.71% 5.83%
Attempts: Average be number of years 4. Finding the interes Aa The future value and pre correspond to present and quations also help in finding the interest rate and the number of years that value calculations. If a security currently worth $12,800 will be worth $18,807.40 five years in the future, what is the implied interest rate the investor will earn on the setsrity-assuming that no additional deposits or withdrawals are made? O O 8.00% 0.29% 1.47% 6.40% If an...
10. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $10,000 will be worth $14,693 five years in the future, assuming that no additional deposits or withdrawals are made, what is the Implied interest rate the investor will earn on the security? O 4.80% O 6.00% O 6.40% O...
MInbox (X HubSpoX M BYOB SLX M BYOBB X J Home X Assignex Mind Tax ng Cengage Cortatic/b/g/eve in he doggy Inted 5565224521/09347990 2 8 SEN CENGAGE MINDTAP Assignment: Chapter 04. Time Value of Money 6. Finding the interest rate and the number of years Аа Аа аа The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations If a security currently worth...
What is the future worth of a series of equal year-end deposits of $3,500 for 11 years in a savings account that earns 13% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? Click the icon to view the interest factors for discrete compounding when i = 13% per year. (a) The future worth of a series of equal year...
What is the future worth of a series of equal year-end deposits of $2.900 for 10 years in a savings account that earns 7% annual interest if the following were true? (a) All deposits are made at the end of each year? (b) All deposits are made at the beginning of each year? Click the icon to view the interest factors for discrete compounding when i: 7% per year. (a) The future worth of a series of equal year-end deposits...
Most questions answered within 3 hours.
-
The Cost of Equity and
Flotation Costs
Messman Manufacturing
will issue common stock to the public...
asked 1 minute ago -
a) summarize the challenges facing New Britain today
b) identify some of its strengths
c) suggest...
asked 3 minutes ago -
**86 at 40 not 88. please show how got Tr in calculations thank
you
2) The...
asked 4 minutes ago -
McGlaun Company pays its employees every two weeks. The firm
last paid its employees on September...
asked 17 minutes ago -
You have been gifted a Mogwai as a pet and decide to do a little
online...
asked 22 minutes ago -
given the standard of 200 mg/dl and the absorbance of that
standard is 0.640. What is...
asked 25 minutes ago -
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 33 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 34 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 1 hour ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 47 minutes ago -
Under normal use conditions, the Mean Time To Failure of a
heating coil can be modeled...
asked 1 hour ago -
Consider the probability that fewer than 34 out of 116 CDs will
be defective. Assume the...
asked 1 hour ago