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Round your answers to the nearest cent. PV of investment: $ FV of investment: $ k. Five banks offer nominal rates of 5% on deposits,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Round your answers to the nearest cent. PV of investment: \$ FV of investment: \$ k. Five banks offer nominal rates of 5% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D 1. What effective annual rate does each bank pay? If you deposit $4,000 in each bank today, how much will you have i 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annu 3. Suppose you don't have the $4,000 but need it at the end of 1 year. You plan to make a series of deposits - annuall 4. Even if the five banks provided the same effective annual rate, would a rational investor be indifferent between the b It is more likely that an investor would prefer the bank that compounded ] frequently. I. Suppose you borrow $15,000. The interest rate is 6%, and it requires 4 equal end-of-year payments. Set up an amortiza Choose the correct graph that shows how the payments are divided between interest and principal repayment over time. The correct graph is a. Find the FV of $1,000 invested to earn 8% after 5 years. Round your answer to the nearest cent. $ b. What is the investment's FV at rates of 0%,4%, and 30% after 0,1,2,3,4, and 5 years? Round your answers to the nearest cent. Choose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 4%, and grey line is for 30% The correct graph is A. Repayment of Principal (\$) Interest (\$) Repayment of Principal (\$) Interest (\$) Repayment of Principal (\$) Interest (\$) B. D. Repayment of Principal (\$) Interest (\$) c. Find the PV of $1,000 due in 5 years if the discount rate is 8%. Round your answer to the nearest cent. $ d. A security has a cost of $1,000 and will return $2,000 after 5 years. What rate of return does the security provide? Round your answer to two decimal places. % years PV of ordinary annuity: \$ FV of ordinary annuity: \$ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: \$ FV with semiannual compounding: \$ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 10 years with a PV of $1,000 and an interest rate of 6%. Round your answers to the nearest cent. Round your answers to the nearest cent. PV of investment: \$ FV of investment: \$ k. Five banks offer nominal rates of 5% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D 1. What effective annual rate does each bank pay? If you deposit $4,000 in each bank today, how much will you have i 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annu 3. Suppose you don't have the $4,000 but need it at the end of 1 year. You plan to make a series of deposits - annuall 4. Even if the five banks provided the same effective annual rate, would a rational investor be indifferent between the b It is more likely that an investor would prefer the bank that compounded ] frequently. I. Suppose you borrow $15,000. The interest rate is 6%, and it requires 4 equal end-of-year payments. Set up an amortiza Choose the correct graph that shows how the payments are divided between interest and principal repayment over time. The correct graph is a. Find the FV of $1,000 invested to earn 8% after 5 years. Round your answer to the nearest cent. $ b. What is the investment's FV at rates of 0%,4%, and 30% after 0,1,2,3,4, and 5 years? Round your answers to the nearest cent. Choose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 4%, and grey line is for 30% The correct graph is A. Repayment of Principal (\$) Interest (\$) Repayment of Principal (\$) Interest (\$) Repayment of Principal (\$) Interest (\$) B. D. Repayment of Principal (\$) Interest (\$) c. Find the PV of $1,000 due in 5 years if the discount rate is 8%. Round your answer to the nearest cent. $ d. A security has a cost of $1,000 and will return $2,000 after 5 years. What rate of return does the security provide? Round your answer to two decimal places. % years PV of ordinary annuity: \$ FV of ordinary annuity: \$ g. How will the PV and FV of the annuity in part f change if it is an annuity due rather than an ordinary annuity? Round your answers to the nearest cent. PV of annuity due: $ FV of annuity due: \$ FV with semiannual compounding: \$ PV with semiannual compounding: $ i. Find the annual payments for an ordinary annuity and an annuity due for 10 years with a PV of $1,000 and an interest rate of 6%. Round your answers to the nearest cent

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