3- Consider this cash flow (from year 1 to year 4) with the changing interest rates specified. $300 $200 $500 $500 10% interest 4% interest 15% interest 7% interest compounded quarterly compounded monthly compounded continuously 1 2 3 What is the equivalent of this cash flow at the end of year one? (round your final answer to 3 decimal potnt) Note: Interest for year 1: 10% compounded quarterly Interest for year 2: 4% compounded monthly Interest for year 3: 15% compounded continuousły Interest for year 4: 7% Final answer:

3- Consider this cash flow (from year 1 to year 4) with the changing interest rates specified. $300 $200 $500 $500 10% interest 4% interest 15% interest 7% interest compounded quarterly compounded monthly compounded continuously 1 2 3 What is the equivalent of this cash flow at the end of year one? (round your final answer to 3 decimal potnt) Note: Interest for year 1: 10% compounded quarterly Interest for year 2: 4% compounded monthly Interest for year 3: 15% compounded continuousły Interest for year 4: 7% Final answer:

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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Exercise 4. Simple Interest. Calculate the amount of money you will have in the following account after 5 years, assuming that you earn simple interest You deposit $700 in an account with an annual interest rate of 4% Exercise 5. Compound Interest. Use the compound interest formula to compute the balance in the following accounts after the sd period of time, assuming interest is compounded annually: $10.000 is invested at an APR of 4% for 10 years. Ộ1 = P x (1+ APR %3D
DIRECTION: ENCIRCLE THE BEST ANSWER. 4.) This refers to the interest rate per conversion period A Compound interest C Rate of interest B Periodic rate D. Simple interest 5) Thuis nefers to the amount paid or eames for the use of money A Conversion period C. Principal B. Interest D Rate 6) 30 months is equivalent to A 25 years B 2.75 years C 3 years D 3.25 years 1) How much is the simple interest on this financial transaction. P = .000 00. - * 6°.. and / 2 years AP120.00 B P600.00 CP1.300 00 D P6.000.00 6) What is the total number of conversion periods when a certain amount is borrowed are 10°. coupomded mouthly for 5 years? A.12 B 50 C 24 D. 60 How unch was the interest if Sophia borrowed P45.000 90 and paid a total of PS5.500.00 ar the end of the tem A PI0.500 00 CP11.500.00 B P45,000.00 D. P100.500.00 10.) What is the interest rate per conversion period if 125.900 00 was tvested at 3.4. compounded oruually for 4 years and 6 months 0033 C 0.110 B 0.330 D. 0 160 11. Jolu borowed…
4-4 Future values For each of the cases shown in the following table, calculate the future value of the single cash flow deposited today that will be available at the end of the deposit period if the interest is compounded annually at the rate spec- ified over the given period. Case Single cash flow Interest rate Deposit period (years) A 24 200 5% 20 В 4,500 8. C 10,000 9. 10 25,000 10 12 37,000 11 F 40,000 12 9
10) Compute the simple interest and final amount of each loan Principal Rate Time P 400 7% 1 year P 640 9% 3 months P 985 10% 180 days (ordinary time period) 60 days (exact time period) P 850 6% ABCD Interest ? ? ? ? Final amount ? ? ? ?
Problem -1-: If you deposit $45,000 into an account earning 4% interest compounded quarterly per year: 1- How much would you have in 5 years? Underline the right answer $10,978.32 $36,781.88 $54,908.55 2- What is the Effective Annual Interest Rate (EAR)?Underline the right answer: 04% 06% 64%
I. Complete the table. Fil in the blanks of the table involvinga simple interest. PRINCIPAL RATE TIME INTEREST P8,000 1) 7 months P210 P15, 000 4. 8% 2) P300 3) 4. 5% 4 months P500 P1, 000 4) 1 year and 3 months P70 P4, 500 0. 25% 5 and haf year 5)
Find the future value for each of the following scenarios, where m is the periodic deposit and r is the interest rate. m m r $150 4.3% $125 7.4% $475 3.3% $500 3.7% $225 6.1% compounding time future in frequency years annually semiannually quarterly monthly weekly 8 7 10 8 value $ LA $ +A $ interest earned $ LA 111 $ $ $
Assuming a 360-day year, when a $17,100, 90-day, 8% interest-bearing note payable matures, total payment will be Round your answer to the nearest whole dollar. a.$342 b.$17,442 c.$18,468 d.$1,368
Assuming a 14% interest rate, which of the following is closest to the total present value of the following payments? Year 3 $12,000 Year 5 $10,000 Present Value of $1 Periods 14% 1 0.877 2 0.769 3 0.675 4 0.592 5 0.519 0.456 0.400 6 7 8 9 0.351 0.308 10 0,270 $12.978 $13,290 $8,100 O $32,054 Present Value of Annuity Periods 14% 0.877 2 1.647 3 2.322 4 2.914 3.433 3.889 4.288 1 5 6 7 8 9 10 4.639 4.946 5.216
Use the compound interest formula to solve. (Round your answers to the nearest cent.) Time Period Nominal Interest Compound Compound Principal (years) Rate (%) Compounded Amount Interest $800 monthly $ 742.23 $ | 1.5
20.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round your answers to the nearest cent. CompoundAmount Term ofInvestment NominalRate (%) InterestCompounded PresentValue CompoundInterest $36,000 6 years 4 semiannually $ $
Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $230,000 cash on November 1 of the current year by signing a 180-day, 7%, $230,000 note 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity. Complete this question by entering your answers in the tabs below. es Reg 1 Reg 2 and 3 Reg 4 On what date does this note mature? (Assume that Pebruary hac 28 days) On what date does this note mature? Rag 2 and 2 Next>

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