19. Amount of $1.00 at 5.5% Compounded Daily, 365-Day Year Day 21 22 23 24 25 Amount 1.00316 |1.00331 1.00347 1.00362 1.00377 Day 31 32 33 34 35 Amount 1.00468 1.00483 1.00498 1.00513 1.00528 Day 21=1.00316 Use Figure 5.2. Alana Geltner deposited $2,225 in a savings account that pays 5.5% interest compounded daily. How much interest did she earn after 21 days?

19. Amount of $1.00 at 5.5% Compounded Daily, 365-Day Year Day 21 22 23 24 25 Amount 1.00316 |1.00331 1.00347 1.00362 1.00377 Day 31 32 33 34 35 Amount 1.00468 1.00483 1.00498 1.00513 1.00528 Day 21=1.00316 Use Figure 5.2. Alana Geltner deposited $2,225 in a savings account that pays 5.5% interest compounded daily. How much interest did she earn after 21 days?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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What's the rate of return you would earn if you paid $1,480 for a perpetuity that pays $90 per year? O a. 6.47% O b. 3.04% O c. 6.08% O d. 12.95% O e. 12.16%
ok D Int = Print Compute the annual dollar changes and percent changes for each of the following accounts. (Decreases should be indicated with a minus sign. Round percent change to one decimal place.) 0 ferences # Short-term investments Accounts receivable Notes payable Percent Change = Short-term investments Accounts receivable Notes payable Type here to search Esc fo F1 1 X F2 $ Current Year $ 378,252 100,583 @ 2 0 Horizontal Analysis - Calculation of Percent Change Numerator: 1 Current Year F3 20 #m Prior Year $ 236,897 104,503 91,702 3 378,252 $ 100,583 F4 0 S4 Prior Year $ 236,897 104,503 91,702 F5 $ % 5 Denominator: Dollar Change F6 111,355 (3,920) (91,702) DELL F7 A Percent Change 29.4 % (26.7) % (100.0) % 6 F8 & 7 0 F9 * a 8 F10 9
Janine is 40 and has a good job at a biotechnology company. Janine estimates that she will need $953,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $25,500 a year. (She expects that Social Security will pay her an additional $18,500 a year.) She currently has $5,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 8 percent, and she plans to leave it untouched until she retires at age 65. How much will Janine's IRA be worth when she needs to start withdrawing money from it when she retires? Use Exhibit 1-A. (Round time value factor to 3 decimal places and answer to 2 decimal places.) Future value of IRA
FL R %24 林 N 4. 3. %23 144 OL 米 91 ア」 f5 dp al 5 of 11 < Prev account? (Round your answer to the nearest cent.) deposits an additional $60,000 at 6% interest compounded semiannually. At the end of six years, what is the balance in Moxie's Moxie Fox deposited $30,000 in a savings account at 6% interest compounded semiannually. At the beginning of year 4, Moxie Moxie's account balance
Present Value of $1 Periods 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 2 0.980 0.961 0.943 0.907 0.907 0.890 0.873 0.857 0.842 0.826 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 Present Value of Ordinary Annuity of $1 Periods 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 3 2.941 2.884…
Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $172,120 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $79,000, with associated expenses of $27,000. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegience's tax rate is 30 percent. (Hint: The $172,120 advertising cost is an expense.) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising program's net present value, assuming an after-tax hurdle rate of 10 percent. (Round your intermediate calculations and final answer to the nearest whole dollar.) 1. Payback period 2. Net present value years
Future values. Fill in the future values for the following table, a. Use the future value formula, FV=PVX (1+r)^. b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. using one of the three methods below:
Face value (principal) $ TABLE 7-1 50,400 Day of month 1 2 3 4 Rate of interest 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 25 26 27 28 29 30 31 31 Jan. 9% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Exact days-in-a-year calendar (excluding leap year)" Length of note 90 days 28 Feb. 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 31 Mar. 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 30 Apr. Maturity value 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 31 May 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 30 31 31 30 June July Aug. Sept. 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 Date of note January 12 189 190 191…
K t 1 ences Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final answers to the nearest whole dollar.) Annual Deposit Rate of Return $ $ $ $ 1,200 1,200 1,200 1,200 4% 7% 6% 9% Number of Years 10 10 30 30 Investment Value at the End of Time Period Total Amount of Investment Total Amount of Earnings
Calculate the present value assuming an annual discount rate of 12.00%? Years: CFs: O $436.99 O $541.87 O $450.10 O $371.44 $493.80 0 1 2 3 $0 $75 $225 $0 $300
A B D F 1 Loan (PV) $ 300,000.00 2 APR 4.50% 3 Monthly Rate 4 NPER 5 Monthly Payment 0.38% 360 $1,520.06 6 7 Payment Number Beg Balance Interest Principal 8 1 ? ? 10 3 ? 11 4 12 ? 13 6 14 7 ? 15 8. ? 16 9 ? 17 10 18 11 19 12 ? 20 21 Cumulative Totals after Year 1 22 Interest 23 Principal Paid 24 25 What if the goal is $1,400 monthly payment? 26 Monthly Payment 27 Monthly Rate Needed ? 1,400.00 28 APR Needed .....c.

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