3.) Suppose that deflation occurs in the U.S. economy and that the CPI (as a measure of f) isexpected to decrease an average of 1% per year for the next five years. A bond with a face (par)value of $10,000 and a life of five years (i.e., it will be redeemed in five years) pays an interest(bond) rate of 4% per year. The interest is paid to the owner of the bond once each year. If aninvestor expects a real rate of return of 3% per year, what is the maximum amount that shouldbe paid now for this bond?

Answered: Image /qna-images/answer/1ff0a83d-2cac-4142-8c66-728f11f18c0d.jpg

Answered: 3.) Suppose that deflation occurs in…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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1. A community experiences linear population growth at a yearly rate of 3%. The population in 2000 was 27,500; what was the population in 1985? Formula = i= n = Amt. = 2. Alan purchased a jeep 20 years ago; today it is worth $500. The jeep depreciates at an annual rate of 10%, compounded annually; how much did Alan pay for the jeep? Formula = n = Amt. = i= 3. Alicia invests $10,000 into a mutual fund that experiences linear grow at an annual interest rate of 7%. What is the value of her investment in 120 months? Formula = i= n = Amt. = 4. A community's population increases monthly as a product of its current population and the periodic growth rate (yearly rate is 3%). The population in 2000 was 27,500; what was the population in 1990? Formula = i= Amt. = 5. Jay deposits $500 into an investment account having a 7% annual rate of interest. Interest is added at the time Jay closes his account (120 months from the time of his deposit) and is based on the amount he deposited. What is the…
11. Rabia invested $9000 per year in a mutual fund that averaged 13% net growth per year with interest compounded annually. How much interest had her investment earned after 8 years? a. $42 815.37 b. $4281.53 c. $13 342.29 d. $66 741.36 nmer
5) Approximately how long would it take to double an investment earning 4.95% nominal interest compounded annually? 15.9 years 15 years 14.8 years 14.3 years 14 years а. b. с. d. e.
2. Suppose your salary in 2014 is $60,000. If the annual inflation rate is 3%, what salary do youneed to make in 2020 in order for it to keep up with inflation?
Sears Holdings Corporation (SHLD) is one of the largest mall-based retailers in the United States. The following year-end data were taken from a recent Sears balance sheet (in millions): December 31 Year 2 Year 1 Current assets $6,045 $5,863 Current liabilities 5,438 5,595 a. Compute the working capital and the current ratio as of December 31, Year 1 and Year 2. (Round your answers to two decimal places.) Year 2 Year 1 Working capital $ fill in the blank 1 $ fill in the blank 2 Current Ratio fill in the blank 3 fill in the blank 4 b. If a company has a current ratio less than 1 and a working capital decline, what does it indicate?
A) If your investments earned 4.5% last year but inflation was 1.0%, the real rate of growtth of your investments was _____%. B) If a new car costs $18,000 and loses value at a rate of 20% per year, its value after 3 years is _______.
Hw.103.
Which of the following statements is TRUE regarding interest rates? O A. The penalty for spending before earning describes the interest rate from the point of view of the debtor. O B. Interest rates in the U.S. were extremely low in the early 1980s because of high maturity premiums. O c. Ceteris paribus, as the frequency of compounding increases, the periodic rate will exceed the EAR by greater and greater amounts. O D. Ceteris paribus, as the frequency of compounding decreases, the EAR will exceed the APR by greater and greater amounts.
If a money market account has a nominal rate of 8.4 percent compounded quar- terly, what is its effective rate? A B C D = 8.7629 percent eff=8.4697 percent " = 8.6683 percent = 8.6421 percent
12. a) Find the present value for the future amount of $42,000 in 7 years at 12% compounded monthly. b) Find the APY corresponding to the nominal rate of 12% compounded monthly.
4. a. Suppose that betwee 401(k) and your employer 8.3%compounded annually dollar, after 18 years?
2. For a 3-year term insurance at age x with death benefit of 1,000 (with death benefit payable at end of year), you are given : i. Px = .97 ii. i= 6% The present value of death benefits at age x is 153. The net level annual premium is 56 (with premium payable in advance for 3 years subject to survival). Calculate px+2 iii. iv.

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