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As much help as possible would be greatly appreciated! You want to double your money in 5 years. What is the required return to accomplish
As much help as possible would be greatly appreciated!
You want to double your money in 5 years. What is the required return to accomplish this if the investment compounds quarterly? Solution: Solution: 4 DETERMINE the price of a bond RATE NPE PMT PV TYPE GUESS 5 \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ DETERMINE PV } \\ \cline { 2 - 2 } RATE & \\ \cline { 2 - 2 } NPER & \\ \cline { 2 - 2 } PMT & \\ \cline { 2 - 2 } PV & \\ \cline { 2 - 2 } PV & \\ \cline { 2 - 2 } TYPE & \\ \cline { 2 - 2 } GUESS & \\ \cline { 2 - 2 } & \\ \hline \end{tabular} Text: A bond has a maturity value of $1,000 in 5 years. The stated rate is 4% but pays interest semiannually. Your cost of capital is 6%. Price the bond. Solution: Text: Reconcile your answer in \#4 by reconciling the present value of the interest payments and the present value of the maturity payment. PV of interest Solution: PV of $1,000 Solution: Add Text: You are buying land that cost $120,000 and need to make quarterly payments to the bank. The term is 5 years and their interest rate is 12%. Text: You are buying land that cost $120,000 and need to make quarterly payments to the bank. The term is 5 years and their interest rate is 12%. What will your quarterly payment be? Solution: 13 DETERMINE required rate of return RATE NPER PMT PV FV TYPE \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} 14 \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ DETERMINE required per } \\ \hline RATE & \\ \hline NPER & \\ \hline PMT & \\ \hline PV & \\ \hline FV & \\ \hline TYPE & \\ \hline GUESS & \\ \hline \end{tabular} Text: You are investing $25,000 in a lump sum in a ten year investment and your goal is to have a future value of $75,000. What is the required, average annual return required to accomplish this? Solution: Text: Continuing with question \#13 above, you are told that the rate required is not predictable over a 10 year period. How many years would it take to achieve the $75,000 goal at a more conservative rate of 8%. Solution: Text: You are investing $25,000 in a lump sum in a ten year investment and your goal is to have a future value of $75,000. What is the required, average annual return required to accomplish this? Solution: Calculate estimated profit per project under con: 1. Calculate the present value of the cash flows a 8.0% 2. Calculate profit per project: PV of cash flows minus outlay. 16 \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ DETERMINE } & yr & CD rate & \\ \hline RATE & & 1 & 5.0% & \\ \hline NPER & & 2 & 4.5% & \\ \hline PMT & & 3 & 4.5% & \\ \hline PV & $10,000.00 & 4 & 4.0% & FV of CD after four (4) years. \\ \hline \multicolumn{5}{|l|}{FV} \\ \hline \multicolumn{5}{|l|}{ TYPE } \\ \hline GUESS & & & & \\ \hline \end{tabular} You want to double your money in 5 years. What is the required return to accomplish this if the investment compounds quarterly? Solution: Solution: 4 DETERMINE the price of a bond RATE NPE PMT PV TYPE GUESS 5 \begin{tabular}{|l|l|} \hline \multicolumn{2}{|l|}{ DETERMINE PV } \\ \cline { 2 - 2 } RATE & \\ \cline { 2 - 2 } NPER & \\ \cline { 2 - 2 } PMT & \\ \cline { 2 - 2 } PV & \\ \cline { 2 - 2 } PV & \\ \cline { 2 - 2 } TYPE & \\ \cline { 2 - 2 } GUESS & \\ \cline { 2 - 2 } & \\ \hline \end{tabular} Text: A bond has a maturity value of $1,000 in 5 years. The stated rate is 4% but pays interest semiannually. Your cost of capital is 6%. Price the bond. Solution: Text: Reconcile your answer in \#4 by reconciling the present value of the interest payments and the present value of the maturity payment. PV of interest Solution: PV of $1,000 Solution: Add Text: You are buying land that cost $120,000 and need to make quarterly payments to the bank. The term is 5 years and their interest rate is 12%. Text: You are buying land that cost $120,000 and need to make quarterly payments to the bank. The term is 5 years and their interest rate is 12%. What will your quarterly payment be? Solution: 13 DETERMINE required rate of return RATE NPER PMT PV FV TYPE \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} 14 \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ DETERMINE required per } \\ \hline RATE & \\ \hline NPER & \\ \hline PMT & \\ \hline PV & \\ \hline FV & \\ \hline TYPE & \\ \hline GUESS & \\ \hline \end{tabular} Text: You are investing $25,000 in a lump sum in a ten year investment and your goal is to have a future value of $75,000. What is the required, average annual return required to accomplish this? Solution: Text: Continuing with question \#13 above, you are told that the rate required is not predictable over a 10 year period. How many years would it take to achieve the $75,000 goal at a more conservative rate of 8%. Solution: Text: You are investing $25,000 in a lump sum in a ten year investment and your goal is to have a future value of $75,000. What is the required, average annual return required to accomplish this? Solution: Calculate estimated profit per project under con: 1. Calculate the present value of the cash flows a 8.0% 2. Calculate profit per project: PV of cash flows minus outlay. 16 \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ DETERMINE } & yr & CD rate & \\ \hline RATE & & 1 & 5.0% & \\ \hline NPER & & 2 & 4.5% & \\ \hline PMT & & 3 & 4.5% & \\ \hline PV & $10,000.00 & 4 & 4.0% & FV of CD after four (4) years. \\ \hline \multicolumn{5}{|l|}{FV} \\ \hline \multicolumn{5}{|l|}{ TYPE } \\ \hline GUESS & & & & \\ \hline \end{tabular}
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