Question
Q5) If you deposit $54.00 into an account paying 11.93% annual interest compounded quarterly, how many years until there is $14,743.00 in the account? (1.5
Q5) If you deposit $54.00 into an account paying 11.93% annual interest compounded quarterly, how many years until there is $14,743.00 in the account? (1.5 points) Q6) If you deposit $53,529.00 at 14.16% annual interest compounded quarterly, how much money will be in the account after 15.0 years? (1.5 points) Q7) If you deposit $1,006.00 into an account paying 18.24% annual interest compounded monthly, how many years until there is $23,141.00 in the account? (1.5 points) Q8) What is the value today of receiving a single payment of $12,748.00 in 7.0 years if your required rate of return on this investment is 16.75% compounded semi-annually? (1.5 points) Q9) If you deposit $487.00 at 27.05% annual interest compounded daily, how much money will be in the account after 8.0 years? (Assume that there are 364 days in a year and show your answer to the nearest cent) (1.5 points) Q10) Suppose you deposit $892.00 today, $455.00 in one year, and $752.00 in two years in an account that pays an annual rate of interest of 12.67% . How much money will be in the account after three years? (1.5 points) Q11) Prepare the first row of a loan amortization schedule based on the following information. The loan amount is for $9,702.00 with an annual interest rate of 17.09% . The loan will be repaid over 5.0 years with monthly payments. a) Loan payment (1 point) b) Interest portion (1 point) c) Principle portion (1 point) d) Loan balance after first monthly payment (1 point) Q12) What is the most you would be willing to pay for a investment that will pay you $435.00 in one year, $237.00 in two years, and $867.00 in three years, if your required rate of return for this type of investment is 18.00% ? (1.5 points) Q13) Suppose you signed a contract for a special assignment over the next 10.0 years. You will be paid $8,882.00 at the end of each year. If your required rate of return is 16.47% , what is this contract worth in today? (1.5 points) Q14) You need a loan to purchase new equipment. The loan will be paid off over 3.0 years with payments made at the end of every quarter. If the stated annual rate is 14.19% and quarterly payments are $855.00 , what is the loan amount? (1.5 points) Q15) You would like to purchase a car for $7,402.00 . If the car loan is 7.97% financed over 3.0 years, what will the monthly payments be for this car? (1.5 points) Q16) What is the most that you would pay for an investment that promises to pay $17,271.00 a year forever with the first payment starting one year from now? Assume that your required rate of return for this investment is 18.63% . (1.5 points) Q17) A loan has a stated annual rate of 17.33% . If loan payments are made monthly and interest is compounded monthly, what is the effective annual rate of interest? (1.5 points) Q18) You invest $538.00 at the beginning of every year and your friend invests $538.00 at the end of every year. If you both earn an annual rate of return of 10.02% , how much more money will you have after 11.0 years? (2 points) Q19) You currently have $4,802.00 in a retirement Savings account that earns an annual return of 12.58% . You want to retire in 41.0 years with 1,000,000. How much more do you need to Save at the end of every year to reach your retirement goal? (2 points) Q20) You currently owe $4,735.00 of your credit card that charges an annual interest rate of 18.96% . You make $198.00 of new charges every month and make a payment of $201.00 every month. What will your credit card balance be in three months? (2 points) Q21) You would like to retire in 14.0 years. The expected rate of inflation is 1.08% per year. You currently have a standard of living that requires $5,494.00 of monthly expenses. Assuming you want to maintain the Same standard of living in retirement, what are your monthly expenses expected to be the first year of retirement? (2 points) Q22) You purchases a house for $170,762.00 . You made a down payment of 20,000 and the remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 30 year mortgage with an annual interest rate of 4.05% . Mortgage payments are made monthly. What is the monthly amount of your mortgage payment? (2 points) Q23) A 1,000 par value bond that pays interest annually just paid $87.00 in interest. What is the coupon rate? (1.5 points) Q24) An 5.02% coupon, 19.0 -year annual bond is priced at $919.00 . What is the current yield for this bond? (1.5 points) Q25) What is the price of a 1,000 par value semi-annual bond with 18.0 years to maturity and a coupon rate of 7.52% and a yield-to-maturity of 9.72% ? (1.5 points) Q26) What is the price of a 1,000 par value, 8.0-year, annual bond with a 8.11% coupon rate and a yield to maturity of 7.69% ? (1.5 points) Q27) You bought a 18.0-year, 7.11% semi-annual coupon bond today and the current market rate of return is 6.41%. The bond is callable in 7.0 years with a $80.00 call premium. What price did you pay for your bond? (2.0 points) Q28) A 3.69% coupon, 11.0 -year annual bond has a yield to maturity of 6.98% . Assuming the par value is 1,000 and the YTM does not change over the next year, Compute the following: a) Price of the bond today (1 point): b) Price of the bond in one year (1 point): c) Capital gains yield (1 point): d) Current Yield (1 point):
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