Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.How long will it take for a lump-sum investment to triple in value at an interest rate of 1.5% per six-months, compounded continuously? 2.Describe reinvestment

1.How long will it take for a lump-sum investment to triple in value at an interest rate of 1.5% per six-months, compounded continuously?

2.Describe reinvestment risk

3.Explain what is risk financing

4.Using graphs describe yield curve, what are the uses.

5.Determine the periodic deposit and how much of the financial goal comes from deposits and how much comes from interests

periodic deposit: $? At the end of every 3 months

4.5% compound quarterly

Time: 6 years

Financial goal: $15,000

6.You plan to work for 40 years and then retire using a 25-year annuity. You want to arrange a retirement income of $5000 per month. You have access to an account that pays an APR of 6.0% compounded monthly. This requires a nest egg of $776,034.32.

What monthly deposits are required to achieve the desired monthly yield at retirement?

7.Holly purchased a house for $325,000. She made a down payment of 25.00% of the value of the house and received a mortgage for the rest of the amount at 5.72% compounded semi-annually amortized over 20 years. The interest rate was fixed for a 5 year period.

a.Calculate the monthly payment amount.

b.Calculate the principal balance at the end of the 5 year term.

c.Calculate the monthly payment amount if the mortgage was renewed for another 5 years at 5.32% compounded semi-annually?

8.You are planning to invest $500 at 12% compounded annually. How much money would you have after 10year

9.Jane needs a short-term loan to buy a new washing machine. She needs to borrow $1500 at 20% compounded annually and plans to have it paid off in 1 year. Jane writes the formula 1500(1.2)t and finds out that this loan will cost her $1800. Which equation shows how Jane can rewrite the formula to find the annual percentage rate that would cost her the same amount if it compounded semi-annually?

10.You plan to invest $350 in a growth fund that has a rate of 1.5% compounded quarterly. How much money will this investment be worth after 50 years?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Payroll Accounting

Authors: Bernard J. Bieg, Judith Toland

21st Edition

1111531056, 978-1111531058

More Books

Students also viewed these Accounting questions

Question

could you explain how to make a package diagram for a subsystem?

Answered: 1 week ago

Question

Go, do not wait until I come

Answered: 1 week ago

Question

Make eye contact when talking and listening

Answered: 1 week ago