2- You buy a financial security at 3,000 dollars paying five times each year for 6 years. Your bank states interest...
2- You buy a financial security at 3,000 dollars paying five times each year for 6 years. Your bank states interest rate at 12 percent p.a. (20 points) What is the effective rate? What is the future value of this asset?
20 An investment paying $1000 in 1 year, $2000 in 2 years and $7000 in 3 years returning 10% p.a. has a present value of: a. $8129.39 b. $6002.54 c. $7210.20 d. $7821.19 21. An investment paying $2000 in 2 year, $6000 in 4 years and $5000 in 12 years at an interest rate of 5% p.a. has a present value of: a. $7906.86 b. $6505.29 c. $7354.21 d. $12 090.49 22 Cash flows of $5000 in 2 years and...
4) Nandana invests $500 at the start of each year for 20 years in a bank account paying interest at the effective annual rate i. She takes the interest paid at the end of each year and invests it in a different account paying an effective annual rate i/2. The effective annual rate she earns on her combined investments is 6% a) How much money does she have at the end of 20 years? (Total of both accounts.) b) What...
Nandana invests $500 at the start of each year for 20 years in a bank account paying interest at the effective annual rate i. She takes the interest paid at the end of each year and invests it in a different account paying an effective annual rate i/2. The effective annual rate she earns on her combined investments is 6%. a) How much money does she have at the end of 20 years? (Total of both accounts.) b) What is...
If 3000 dollars is invested in a bank account at an interest rate of 6 per cent per year, find the amount in the bank after 12 years if interest is compounded annually Find the amount in the bank after 12 years if interest is compounded quaterly Find the amount in the bank after 12 years if interest is compounded monthly Finally, find the amount in the bank after 12 years if interest is compounded continuously
You just received a bonus of $3,000. a. Calculate the future value of $3,000, given that it will be held in the bank for 6 years and earn an annual interest rate of 6 percent. b. Recalculate part (a) using a compounding period that is (1) semiannual and (2) bimonthly. c. Recalculate parts (a) and (b) using an annual interest rate of 12 percent. d. Recalculate part (a) using a time horizon of 12 years at an annual interest rate...
Given an interest rate of 9 percent, compute the year 6 future value if deposits of $3,000 and $4,000 are made in years 2 and 3, respectively, and a withdrawal of $975 is made in year 5. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Find Future Value Please answer correctly. Thank you!
Math Interest Theory/ Financial Math Please Use Formulas 6. (3pts) A perpetuity paying 100 at the end of each 4-month period has a present value of 5000. What is the present value of an annuity paying 100 at the end of every 3 year for 30 years, assuming the same effective interest rate? (Answer: 426.33) 7 (2nts) There is $10 000 in a fund which is c l etin 40/ -
You wish to buy a house five years from now, which will expectantly cost $550,000 after five years. You will pay parts of this price from your personal deposit. You will cover the rest of the purchase price by taking two types of loans at the time of purchase: a 4-year fixed-interest personal loan of $20,000 - a 25-year fixed-interest house loan for the rest of the house price (.e. after paying from the personal deposit and the $20,000 taken...
1. What's the future value of $55,000 after 20 years if the appropriate interest rate is 3%, compounded semiannually? 2. Tucson Bank offers to lend you $50,000 at a nominal rate of 12%, compounded monthly. The loan (principal plus interest) must be repaid at the end of the year. Phoenix Bank also offers to lend you the $50,000, but it will charge an annual rate of 10.8%, with no interest due until the end of the year. How much higher...