FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mr Rolf Weasley has recently purchased $12,000 worth of shares in Perloins Ltd. Given the relative risk exposure of Perloins Ltd., Rolf expects an annual

Mr Rolf Weasley has recently purchased $12,000 worth of shares in Perloins Ltd. Given the relative risk exposure of Perloins Ltd., Rolf expects an annual rate of return on the investment of 9% p.a. compounded at regular intervals of 4 months. Approximately how much would Rolf expect to realise from the sale of his investment in 5 years from now? Show formulae and workings step by step.


Step by Step Solution

★★★★★

3.39 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

This can be solved using the Future value formula Future value Present value or I... 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

Step: 3

blur-text-image

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

Introduction to Accounting An Integrated Approach

Introduction to Accounting An Integrated Approach

Authors: Penne Ainsworth, Dan Deines

6th edition

78136601, 978-0078136603

More Books

Students also viewed these Accounting questions

Question

★★★★★
How does rate of return on an investment differ from return on investment? What are the advantages of using a rate of return on investment when choosing among alternative investments?

Answered: 1 week ago

Question

★★★★★
a. Calculate the approximate annual rate of return on investment of the following cash discount terms: 1. 1/15, n30. 2. 2/10, n60. 3. 1/10, n90. b. Which of these terms, if any, is not likely to be a...

Answered: 1 week ago

Question

★★★★★
Table indicates that the average annual rate of return on common stocks over many years has exceeded the return on government bonds in the United States. Why do we observe this pattern? Security...

Answered: 1 week ago

Question

★★★★★
What is your debt payments-to-income ratio if your debt payments total $684 and your net income is $2,000 per month?

Answered: 1 week ago

Question

★★★★★
Every year the residents of a historical town gather to determine how much to spend on their park, 10 percent or 15 percent of the budget. If everyone votes for the same percentage, they will spend...

Answered: 1 week ago

Question

★★★★★
Provide a buy vs. build decision and rationale for three of the components from the video game system of Exercise 2.1. Include at least one buy item and one build item. Data in Exercise 2.1 You have...

Answered: 1 week ago

Question

★★★★★
=+b) Explain what the coefficients of the bran cereal dummy variables mean.

Answered: 1 week ago

Question

★★★★★
Alden Co.s monthly sales and cost data for its operating activities of the past year follow. Management wants to use these data to predict future fixed and variable costs. Required 1. Prepare a...

Answered: 1 week ago

Question

★★★★★
HarrisCorporation produces a single product. Last year, Harris manufactured 27,970 units and sold 22,200 units. Production costs for the year were as follows: Fixed manufacturing overhead $335,640...

Answered: 1 week ago

Question

★★★★★
h) I proceed to study the short-run dynamic of the changes in gold price (LGPRICE) and inflation (INF) and estimated a VAR model. Write down the VAR(1) model using the notation LGPRICE and INF? (j)...

Answered: 1 week ago

Question

★★★★★
Check each of the following that apply. What is true about how stars affect the appearance of life? A. Higher-mass stars are long-term incubators of life. B. Lower-mass stars are long-term incubators...

Answered: 1 week ago

Question

★★★★★
Question 1-9 marks One of the most popular buzzwords in business today is the word "Kaizen". It is a Japanese word meaning "incremental improvement. Kaizen was formalized by the Toyota Production...

Answered: 1 week ago

Question

★★★★★
As strategic partners, how human resource managers approach change management, based on organizational structure, culture? Also, how knowing different functional areas of an organization (e.g.,...

Answered: 1 week ago

Question

★★★★★
Per case, Obermeyer s initial production commitment is at least 1 0 , 0 0 0 units. To get some more understanding, we\'ll change this slightly, to 1 2 , 0 0 0 units. Which styles should be produced...

Answered: 1 week ago

Question

★★★★★
Using the ACHE well-managed healthcare foundations for operations management, and the reading from A Comprehensive Guide to Value-Based Care for Primary Care...

Answered: 1 week ago

Question

★★★★★
Fanning moone. What would be the company's ROI in this scenario? EXERCISE 11-7 Contrasting Return on Investment (ROI) and Residual Income [L01, L02] Rains Nickless Ltd. of Australia has two divisions...

Answered: 1 week ago

Question

★★★★★
Exercise 1 0 - 8 ( Algo ) Straight - Line: Recording bond issuance and premium amortization LO P 3 Wookie Company issues 6 % , five - year bonds, on January 1 of this year, with a par value of $ 1 0...

Answered: 1 week ago

Question

★★★★★
The figure shows six containers, each of which is filled from the top. Assume that water is poured into the containers at a constant rate and each container is filled in 10 seconds. Assume also that...

Answered: 1 week ago

Question

★★★★★
As of January 2, 2012, you have just completed a discounted cash flow analysis on a $ 250,000 invest-ment. You calculated after- tax cash flows ( including the following tax shield). You then...

Answered: 1 week ago

Question

★★★★★
Peterson, Inc. sold 260,000 units last year, which was 20 percent less than expected. Its average selling price was $ 6 per unit, which was 20 percent higher than planned. What are the sales price...

Answered: 1 week ago

Question

★★★★★
Refer to CA5.1. Prepare a spreadsheet that proves using the economic order quantity minimizes total inventory ordering costs plus inventory carrying costs. Use Exhibit 5.3 as a guide. Do not round...

Answered: 1 week ago

Question

★★★★★
The professor teaching the Introductory Statistics class discussed in Exercise 55 wonders whether performance on homework can accurately predict midterm scores. In Exercise 55 a) To investigate it,...

Answered: 1 week ago

Question

★★★★★
Returning to the results of Exercise 2, write a sentence to explain the meaning of the standard error of the slope of the regression line, SE (b1) = 0.0053.

Answered: 1 week ago

Question

★★★★★
Consider again the relationship between the population and ozone level of U.S. cities that you analyzed in Exercise 47. In Exercise 47 a) Give a 90% confidence interval for the approximate increase...

Answered: 1 week ago

Previous Question Next Question