Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An investment has a present value of $4444 and is expected to be worth $5372 in 7 years time. What is the annual compound interest
An investment has a present value of $4444 and is expected to be worth $5372 in 7 years time. What is the annual compound interest rate? (IMPORTANT Please type your answer in decimals e.g. 10.1\% should be shown as 0.101.) Answer: Calculate the present value of a market security that promises to pay $1,000 p.a. forever, assuming an interest rate of 5.5% per annum. Select one: a. $181.82. b. $947.87. c. $1,055. d. $2,871.98. e. $18,181.82. Suppose you deposit $2,500 at the end of the year into a savings account for the next six years. If the bank pays interest at 6.4% p.a. compounded annually over the period, how much will you have in your account at the end of six years? Select one: a. $3,627.35. b. $7,600.17. c. $15,960.00. d. $17,614.88. e. $56,677.38. What is the present value of $97238 that is to be received in 15 years time if you require a 6.2 percent return? (IMPORTANT Please round your answer to the nearest dollar but exclude the $ sign when typing your answer.) You have $10,000 to invest. If you invest it at 6.2% p.a. with interest compounded semiannually for two years, what will be the value of your investment at the end of the two years? If a $2160 investment is returning a continuously compounded return of 13.2% how much will you expect to have at the end of 7 years? (Please round your answer to the nearest dollar but exclude the $ sign when typing your answer.) The earnings of GDP Company have grown from $2.00 per share to $4.00 per share over a nine year time period. Determine the compound annual growth interest rate: Select one: a. 11.1 percent. b. 8 percent. c. 22.2 percent. d. 100 percent. e. 50 percent. How much must be invested today in order to generate a five year annuity with end of the year payments of $10,000 that begins at the end of two years from now if the discount rate is 10% ? Select one: a. $28,742.03. b. $31,328.82. c. $34,461.70. d. $37,907.87. e. $50,918.27. What is the current price of a coupon bond that has a face value of $1,000, a yield of 8 percent, pays an annual coupon payment of $100 and matures in two years? Select one: a. $973.98. b. $1,344.33. c. $1,035.67. d. $1,065.34. e. None of the above. You are trying to determine what a client will need to save each year in order to have $800,000 on their retirement. Your client expects to retire in 7 years and savings will be deposited into an investment fund that earns 8.3% per annum. What is the annual end of year deposit required to meet their goal
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started