17- Assume that 12t = 0.15% and that 11t = 0. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then it+1*e i equal to OA. 5.90% OB. 6.20% OC. 5.15% OD. 5.60%
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- Sally will eam S33,000 this year and $42,000 next year. The real interest rate is 25% between this year and next year; she can borrow or save at this rate. She has no wealth at the start of this year and plans to finish next year having consumed everything she possibly can. She would like to consume the same amount this year as next year. How much should Sally save (or borrow) this year? save $4500 O save $4000 O borrow $4500 O borrow $40008. For a given procedure, F = 0.7, and the discount rate of 4%, for all 4 years solve for the QALY given: year 1 q 0.2 year 2 q = 0.3 year 3 q 0.5 year 4 q 0.7 discount of 4% (used as (1/(1.04)year ) will equal: year 1 = 0.96 year 2 = 0.92 year 3 = 0.89 year 4 = 0.86 Solve for the QALY number of years. Round-off to the nearest integer. O 2 0 1 0 4 0 3Four years ago, Zaldy Nevarez invested P23 900 compounded bimonthly at 12%. How much is his money now? A. P38 578.00 B. P38 578.01 C. P38 578.02 D. P38 578.03 B O A OD Find the interest earned at the end of 4 years if P36 700 is invested at 12% compounded bimonthly. A. P22 309.04 B. P22 429.04 C. P22 539.04 D. P22 359.04 O A
- 19:14 O E N{ 57% A project requiring an initial investment of $10 000 is guaranteed to produce a return of $13 000 in 5 years. 2. Use NPV method to determine whether this investment is worthwhile if the market rate is 5% compounded annually. ing anial produceatum of o determine wete IIJacob manages a cloth manufacturing firm. He is deciding whether or not to invest In new machinery, The machinery costs $45,000 today and is expected to Increase cash lows in the first year by $25,000 and in the second year by $30,000. The firm's accrued fixed costs are $2800. If the interest rate (cost of capital) is 15% then whal is the net present value of the investment? 26.09 O 1840.09 2826.09 -576.5612:42 Expert Q&A Done e bond wi e wth S en and dd 1 y Howuh wod an be wilngt pay r ths bonda5 pr yr y d con te e the intrt and annly to d compunding when p yea The urnt worh ofhend oundt the ) Azero coupon bond will be worth $15,000 when it matures and is redeemed after 13 years. How much would an investor be willing to pay now for this bond if a 3% per year yield is desired? Click the icon to view the Interest and annuity table for discrete compounding when = 3% per year. The current worth of the bond is (Round to the nearest dollar)
- Suppose you are offered the alternative of receiving either $2,500 at the end of 6 years or $1,200 today. What interest would make you indifferent to your choice between $1,200 and the promise of $2,500 at the end of sixyears? OA 6% OC 13% OD 12% QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r 3 and ending at the end of year 12? The interest rate is 20% compounded annually. 12 $600 44 4 4 44444 QUESTION 10 What single payment at the end of year 8 is equivalent to an equal annual series of payments Of $600 beginning at the end of yea r3 and ending at the end of year 12? The interest rate is 20% compounded annually $600 12 OA S4,347 OB 55216 OC S7511 OD S0.250How much would be in your account in 8 years after depositing $2000 now? The annual interest rate is 8%. Оа. $4317.8 O b. $6211.7 О с. $4952.0 O d. $3701.9is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. The present value of a loan in which $1000 is to be paid out a year from today with the interest rate equal to 1% is $. (Round your response to the neareast two decimal place) If a loan is paid after two years, and the amount $1000 is to be paid then with a corresponding 2% interest rate, the present value of the loan is $. (Round your response to the neareast two decimal place) Next 11:41 AM
- 1. you are earning 7% annually and contributing the max allowable each year: if you want to have at least $1,000,000 in your IRA by age 60, what is the latest age you can start investing? b. Suppose you invest $3,000 and earn 7% interest per year on this investment. How many years will it take for your total investment to be worth $6,000 c. imagine the interest rate on your savings account was 0.5% per year and inflation was 2% per year. After one year, your ability to buy something with the money in this account with be: Question options: more than today less than today exactly the same impossible to sayThe YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). (Round the final answers to 2 decimal places.) a. Suppose that today you buy an 9.2% annual coupon bond for $1,180. The bond has 19 years to maturity. What rate of return do you expect to earn on your investment? Expected rate of return % b-1. Two years from now, the YTM on your bond has declined by 1%, and you decide to sell. What price will your bond sell for? (Omit $ sign in your response.) Bond price $ b-2. What is the HPY on your investment? HPY %▼ Cash Flow Present Discounted Value Interest Rate is based on the notion that a dollar paid in the future is less valuable than a dollar paid today. Part 2 The present value of a loan in which $3000 is to be paid out a year from today with the interest rate equal to 3% is $enter your response here. (Round your response to the neareast two decimal place) Part 3 If a loan is paid after two years, and the amount $3000 is to be paid then with a corresponding 1% interest rate, the present value of the loan is $enter your response here. (Round your response to the neareast two decimal place)
