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I am currently in a finance class and assistance is needed. Please help For each of the following, compute the present value (Do not round
I am currently in a finance class and assistance is needed. Please help
For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value $ Years Interest Rate Future value 12 6% $ 15,951 3 12 56,557 28 13 891,073 30 10 555,164 a. Compute the future value of $1,000 compounded annually for 20 years at 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) $ Future value b. Compute the future value of $1,000 compounded annually for 15 years at 8 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ c. Compute the future value of $1,000 compounded annually for 25 years at 7 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Future value $ First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually. If you made a $68,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Difference in accounts $ Wilkinson Co. has identified an investment project with the following cash flows: Year 1 2 3 4 Cash Flow $ 810 1,110 1,370 1,500 If the discount rate is 11 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ If the discount rate is 17 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ If the discount rate is 25 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Present value $ Suppose a stock had an initial price of $68 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $80. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Total return % You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 14 percent, -14 percent, 16 percent, 26 percent, and 10 percent. Suppose the average inflation rate over this period was 3.5 percent, and the average T-bill rate over the period was 4 percent. a. What was the average real return on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Average real return % b. What was the average nominal risk premium on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) Average nominal risk premium % What is the present value of $13,850 to be received 4 years from today if the discount rate is 4.75 percentStep by Step Solution
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