Hello admin, i have some questions from Finance 1a please help me solve it thank you so much.
1. Use the gure (the determinants of the equilibrium rate of interest) to finish the following table indicating how would each scenario change the real rate of interest. (3 marks) B 1119mm- mmwlemlti.) commasintamstmes gomancllonci'lg becomeemoreprotaue. mmtmmod andtr)'snrateat mmmmma MCI-Haws\" rn' desirodlovold boncw'mgt). Nb amntlty at landlnybommng In the economy (3) b Curve to be affected Direction the curve Changes in the real (Demand/Supply) to be shift to interest rate left/ri . ht increase/decrease A major breakthrough in technolo- An increase in individual tax RBA buys covemment bond An increase in com an tax 2. What is the difference between direct financing and indirect nancing? Identify the main players using direct nancing and indirect nancing. Given your reasons why they prefer that method. (3 marks) 3. If the nominal rate of interest is 7.5 percent and the real rate is 4 percent, what is the expected ination premium using the full version of sher equation? (Round your answer to 0.01%.) (2 marks) 4. Company A plans to make a one-year loan to a main client. The company asks you to work out the reasonable interest rate to charge the client. The expected ination for next year is 7.5%. The real rate of interest is 4%. What rate should the company charge for the one-year loan using the simplied sher equation? (Round your answer to the 0.01 %.) (2 marks) 5. You have an opportunity to invest $2,500 today and receive $3,000 in three years. What will be the return p.a. on your investment? (Round your answer to the 0.01%.) (2 marks) 6. You invest in a mutual fund today that pays 9 percent interest annually. How long in years will it take to double your money? (Round your answer to 2 decimal places.) (2 marks) 7. A printing rm needs $50,000 in 2 years to purchase a new poster printing machine. The managers consult 2 banks. Under the current market condition, Bank A offer a 3.5% per annum compounded half yearly on the company's saving account and Bank B offer a 3.2% per annum compounded quarterly, based on your calculation, which bank should the company choose to make a deposit today? (Correct to the nearest cent) (2 marks) 8. You have been offered with two investment opportunities, A and B. Both investments will provide you with the same accumulated value in 3 years' time. For option 1, you need to investment $50,000, today and earn an interest rate 6.5% per annum compounded monthly. How much should you invest in Option B today, if the interest rate you can earn is 5% per annum compounded semi-annually? (Correct to the nearest cent.) (3 marks) 9. An amount of $10,000 is invested in a bank account for three and a half year. The account pays interest of 6% per annum compounded monthly for the rst 2 years, then at a 7% per annum compounded monthly for 18 months. How much is the account at the end of this time if no withdrawals are made? (Correct to the nearest cent.) (3 marks) 10. Your parents planned to invest in a house in Sydney Western area for $1,000,000, however, they decided to postpone the investment for two years, and instead they are going to deposit the $1,000,000 into a bank account and earn an interest rate 4% per annum compounded monthly for the rst year and 4.5% per annum compounded monthly for the second year. After two year, what will be the highest house price that your parents can afford