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Please see attached. Any help would be greatly appreciated. For Chapter 5....I did the last part of question 3 and all of question 4. Can

Please see attached. Any help would be greatly appreciated.

For Chapter 5....I did the last part of question 3 and all of question 4. Can you please check my work?

Thank you!

image text in transcribed Chapter 5 Question 1 Input area: Interest rate Deposit # of years Output area: Simple interest per year Total simple interest $ $ - FV with simple interest $ - Compound interest Difference $0.00 $ - Simple Interest versus Compound Interest [LO1] 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 deposit of $9,000 in each bank, how much more money would you earn from your Second City Bank account at the end of seven years? Calculating Future Values [LO1] For each of the following, compute the future value: $ $ $ $ Present value 1,975.00 6,734.00 81,346.00 192,050.00 Years Interest rate Future value 11 13% 7 9% 14 12% 8 6% Chapter 5 Question 3 Calculating Present Values [LO2] For each of the following, compute the present value: $ $ $ $ Present value 5,039.79 39,332.59 1,730.78 3.37 Years Interest rate Future value 13 9% $ 15,451 4 7% $ 51,557 29 24% $ 886,073 40 35% $ 550,164 Chapter 5 Question 4 Calculating Interest Rates [LO3] Solve for the unknown interest rate in each of the following: Present value $ 181 335 48,000 40,353 Years 4 18 19 29 Interest rate Future value 13.18% $ 297 6.72% 1,080 7.37% 185,362 9.30% 531,618 the following: Annuity Period [LO1] As you increase the length of time involved, what happens to the present value of an annuity? What happens to future value? Calculating Loan Payments [LO2, 4] You want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? Valuing Bonds [LO2] Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 23 years to maturity, and a coupon rate of 5.8 percent paid annually. If the yield to maturity is 4.7 percent, what is the current price of the bond? Valuing Bonds [LO2] Union Local School District has a bond outstanding with a coupon rate of 3.7 percent paid semiannually and 16 years to maturity. The yield to maturity on this bond is 3.9 percent, and the bond has a par value of $5,000. What is the price of the bond? Stock Values [LO1] The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. If investors require a return of 10.5 percent on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? What will the price be in three years? In 15 years? Stock Valuation [LO1] Suppose you know that a company's stock currently sells for $63 per share and the required return on the stock is 10.5 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share? Stock price Required return Output area: Next year's dividend $ - Current dividend $

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