13. Jenny wishes to double her financialn fund and the bank gives her 8% rate of interest annually, how many years does Jenny needs to deposit a money to achieve her goal?

Q: Suppose your parents decide to give you $10,000 to be put in a college trust fund that will be paid…

A: Present value = $10,000 Interest rate per period, r = 1.5% Number of compounding periods, n = 5 × 4…

Q: Gabby is planning to buy a home.  She has some money for a down payment already saved.  She sees a…

A: Step 1). Monthly payment on the borrowing is calculated using following equation Monthly payment =…

Q: 11. Zoe has been depositing $900 every month into her retirement account for 35 years. The annual…

A: Depositing amounts regularly in an interest earning account will accumulate a large amount at the…

Q: Juanita Domingo's parents want to establish a college trust for her. They want to make 16 quarterly…

A: Present Value is the current price of future value which will be received in near future at some…

Q: How much money should Prisha invest today in a fund that earns interest at 4.02% compounded…

A: Here, Semi Annual Payment (PMT) is $7,750 Interest Rate (r) is 4.02% Compounding Period (m) is…

Q: Elizabeth has $31,209.00 in an investment account. Her goal is to have the account grow to…

A: The concept of TVM refers to the interest-earning capacity of money because money earned earlier is…

Q: On a child's first birthday, a parent wishes to deposit enough money so that the child can withdraw…

A: Present Value of annuity = Annual payments * PVAF(rate, number of years) Present Value = Future…

Q: Debbie is 22. She wants to invest part of her monthly salary in order to have $760,000 when she…

A: Compound = Monthly = 12Future Value = fv = $760,000Time = t = (66 - 22) * 12 = 528Interest Rate = r…

Q: Ingrid wants to buy a $22,000 car in 6 years. How much money must she deposit at the end of each…

A: Future Value = $22,000 Time Period = 6 Years Interest Rate = 5.8%

Q: New parents wish to save for their newborn's education and wish to have $37,000 at the end of 18…

A: Given  P=$37,000 r= 7.8% n=1 t=18 years

Q: Brenda Young desires to have $16,500 eight years from now for her daughter’s college fund. If she…

A: Data given: FV= $16500 n=8 years r=12% (compounded annually) Required: what amount should she…

Q: Katy has decided she wants to put money aside for a $8000 downpayment on a house. She figures she…

A: A theory that helps to compute the present or future value of the cash flows is term as the TVM…

Q: To help with a down payment on a home, Jenny is going to invest. Assuming an interest rate of 1.67%…

A: Using excel PV function

Q: Betty wants to invest a monthly sum of money in order to accumulate R100000 in seven years. How much…

A: The PMT function or concept can be used to determine the periodic payments required to accumulate a…

Q: Lily has an account that pays 3.48% simple interest per year and wants to accumulate $4,000 in…

A: Interest per year can be calculated as: = Principal * Rate * Time

Q: Suppose Nicole deposits $50,000 in an account that pays 9% compounded annually. How long does it…

A: Given data; Present value = $50,000 interest rate =9% future value = $ 125,000

Q: nim to receive $3000 each month for 5 years, beginning 18 4.2% p invest the money today in an…

A: Here we will use the concept of time value of money to answer the questions.

Q: Ann would like to have $20,000 saved in 7 years from today and can earn 3.8% on deposits. She plans…

A: we will find future value of each deposits and sum of all future values shall be equal to 20000

Q: Radhika is saving $1600 at the beginning of every six months in a retirement fund. Her goal is to…

A: We need to use NPER function in excel to calculate time to achieve the future goal. The formula is…

Q: month into a fund that earns interest at 4.50% compounded m a. How many deposits does she need to…

A: Future value of annuity includes the amount being deposited and compounding interest accumulated…

Q: Alexandria wants to receive $12,000 a year for 8 years. How much must Alexandria invest today in an…

A: Computation:

Q: Hannah wants to have $ 5500 to help pay for a new deck in 13 years. If she wants to put her money…

A: Future value = fv  = $5500 Time = t = 13 years Interest rate = r = 8%

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.