2. If $14,000 had been invested in the Fictious Fund on June 30, 1995, then on June 30, 2005 theinvestment would have been worth $55,177.52. What interest rate compounded annually would thisinvestment have earned? Round to the nearest hundredth of a percent.а.14.70%b.39.41%С.29.41%d.13.71%е.29.41%3. A credit card bill due on April 5 showed a balance of $263. The card holder forgot to pay the bill untilthe 20th of the month, but paid the full amount of $263 at that time. In the mean time, the card wasused to make purchases of $138 on the 10th of the month and $74 on the 20th of the month. What wasthe average daily balance for the billing period?а.$362.50b.$95.97с.$166.07d.$184.27

“Hey, since there are multiple questions posted, we will answer first question. If you want any…

2. If $14,000 had been invested in the Fictious Fund on June 30, 1995, then on June 30, 2005 the investment would have been worth $55,177.52. What interest rate compounded annually would this investment have earned? Round to the nearest hundredth of a percent. a. 14.70% b. 39.41% C. 29.41% d. 13.71% е. 29.41%

2. If $14,000 had been invested in the Fictious Fund on June 30, 1995, then on June 30, 2005 the investment would have been worth $55,177.52. What interest rate compounded annually would this investment have earned? Round to the nearest hundredth of a percent. a. 14.70% b. 39.41% C. 29.41% d. 13.71% е. 29.41%

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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iR=25 R=4
Multiple choice: If for five years, the cash inflows are uniform at P120,000 which present value of annuity factor are you going to use to covert the inflows into the present value assuming that the cost of capital is 12%? • 0.56743• 1.56743• 3.60478• 2.40188
1.An investment that has a maturity value of $3,400 and is discounted 5 years and 6 months before maturity at 4.80% compounded semi-annually. a. Calculate the discounted value of the investment. $0.00 Round to the nearest cent b. Calculate the amount by which the money is discounted.
(3) It is known that an investment of P5,000 will increase to P40,000 at the end of 30 years. Find the sum of the present values of three payments of P 100,000 each which will occur at the end of 20, 40, and 60 years. Find first 1 + i then v¹ = (1+i) fort=20, 40, 60.
QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819 $????????? invested annually at the end of the year. Required Computations: $12,648.91 $72,648.92 $33,3333.33 $11,927.43
Q1/ Ipswich Corporation is considering an investment opportunity with the expected net cash inflows of $300,000 for four years. The residual value of the investment, at the end of four years, would be $70,000. The company uses a discount rate of 14%, and the initial investment is $290,000. Calculate the NPV of the investment. Present value of an ordinary annuity of $1: 12% 13% | 14% | 15% 0.893 0.885 0.877 0.87 2 1.69 |1.6681.647 1.626 32.402 2.361 2.322 2.283 43.037 2.974 2.914 2.855 3.605 3.517 3.4333.352 Present value of $1: 12% 13% | 14% | 15% 0.893 0.885 0.877 0.87 20.797 0.783 0.769|0.756 30.712 0.6930.675 0.658 40.636 0.6130.592|0.572 50.567 0.543 0.519|0.497
You invest $4200 for a period of 7 years. At the end of 7 years your investment has grown to $7200. What is the annual rate of return on this investment? O a. 6.18% b. 10.20% O c. 8.00% O d. 71.43%
Bha
QUESTION 41 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819 One single deposit of $???????? for 30 years. Required Computations: $166,666.66 $174,110 $175,933.83 $126,489
An investment becomes P 4,500,000 four years from now and becomes P 5,250,000 thirteen years from now. a. Assuming rate of compounded interest remains constant through time, what was the investment's value on the present time? b. What rate of interest compounded quarterly is equivalent to the interest rate of the given investment? c. What rate of interest compounded monthly is equivalent to the interest rate of the given investment?

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