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

Question

1 Approved Answer

Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he invests your money for one month

Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he invests your money for one month and keeps all of the proceeds before investing it for you. If your advisor makes and keeps a 1% return on your investment, what is his EAR if the earnings rate could be extrapolated for one year?

A) 1.00%

B) 12.00%

C) 12.68%

D) 126.82% PLEASE SHOW WORK !

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Real Estate Finance And Investments

Real Estate Finance And Investments

Authors: William Brueggeman, Jeffrey Fisher

13th Edition

0073524719, 9780073524719

More Books

Students also viewed these Finance questions

Question

★★★★★
What is the rationale for the payback method? According to the payback criterion, which project(s) should be accepted if the firms maximum acceptable payback is 2 years, if Projects L and S are...

Answered: 1 week ago

Question

★★★★★
The Employee Benefit Research Institute (EBRI) issued a news release (Saving in America: Three Key Sets of Figures) on October 25, 2005. In 2005, about 69% of workers said they have saved for...

Answered: 1 week ago

Question

★★★★★
4. The following is a description of the causal relationship between storms, the behavior of burglars and cats, and house alarms: Stormy nights are rare. Burglary is also rare, and if it is a stormy...

Answered: 1 week ago

Question

★★★★★
Crane is a partner in the Cardinal Partnership. A dispute arose with the partnership regarding his share of current earnings. The partnership contends that the amount is $75,000, while Crane believes...

Answered: 1 week ago

Question

★★★★★
Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he invests your money for one month and keeps all of the proceeds before investing it for you. If your...

Answered: 1 week ago

Question

★★★★★
Perform all computations in the script below. Only display the output requested below (suppress display of all other computations). Consider the data file, DFWtemps.dat (Even though you can't see...

Answered: 1 week ago

Question

★★★★★
Prompt: Watch Vignette 1 - Introduction to a Preventive Services Visit (located in the Multimedia Resources folder). An African Adolescent is seeking counseling services related to his current mood....

Answered: 1 week ago

Question

★★★★★
Angela Paulino, a native of Cebu, is a graduate of culinary arts and works as a baker in Chicago, USA. After working for ten years she was able to save P500,000. She decided to go back to Cebu and...

Answered: 1 week ago

Question

★★★★★
Polly Peyrotte started designing and decorating fine china plates more than 100 years ago. As her artistry caught on, she became famous. She also had good business sense and what started as one...

Answered: 1 week ago

Question

★★★★★
Suppose you're asked to evaluate the outcomes of your chosen EBP intervention on your client, Paula, from Week 1. Paula Cortez was diagnosed with HIV, Bipolar Disorder, and is pregnant. She quit...

Answered: 1 week ago

Question

★★★★★
Current Attempt in Progress The partnership of Marigold, Swifty, and Nash engaged you to adjust its accounting records and convert them uniformly to the accrual basis in anticipation of admitting...

Answered: 1 week ago

Previous Question Next Question