a) True b) False highe 19. What is the Present Value of a stream of quarterly cash flows of $55m lasting for ten years? The payments are made in each successive quarter. Assume a nominal annual discount rate of 7.25% a) $1,214.68m b) $1,555.24m c) $1,782.73m d) $963.44m 20. A deposit placed in a savings account earning 8% a year will double in value in years? a) 5 years b) 6 years c) 17 years

a) True b) False highe 19. What is the Present Value of a stream of quarterly cash flows of $55m lasting for ten years? The payments are made in each successive quarter. Assume a nominal annual discount rate of 7.25% a) $1,214.68m b) $1,555.24m c) $1,782.73m d) $963.44m 20. A deposit placed in a savings account earning 8% a year will double in value in years? a) 5 years b) 6 years c) 17 years

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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Similar questions

a. The future value of a $560 savings deposit after eight years at an annual interest rate of 3 percent. b. The future value of saving $2,600 a year for five years at an annual interest rate of 4 percent. c. The present value of a $6,800 savings account that will earn 3 percent interest for four years.
With an initial deposit of 200 dollars, the balance in a bank account after t years is f(t) = 200(1.05)t dollars. What are the units of the rate of change of f(t)? Find the average rate of change over [0,1]
Find the size of the monthly bank payment: P=$75,000 interest= 7 3/4% time= 4 months
When $8,600 is invested in a savings account paying simple interest for the year, the interest, i in dollars, can be obtained from the equation i=8,600r, where r is the rate of interest in decimal form. Graph i=8,600r, for r up to and including a rate of 16%. If the rate is 7%, how much interest is earned? OA. $6,020 OB. $602 OC. $586 OD. $622
27. You hope to accumulate an account balance of $20,000 in 4 years by making a single deposit today. If the account earns a 5% annual rate of return, you will need to deposit into the I account today.
You need to have $50,000 in a bank account 28 years from today. Assume APR is 12% and monthly compounding. How much money must be in the account 6 years from now assuming no other deposits or withdrawals? $4,132.12 $2,093.46 $3,709.32 $3,615.16 $5,836.23
Answer the following: Show the cash flow diagram and solutions. A bank give a certain interest rate compounded semiannually of Php. 7K will amount of amount of Php. 28K after 12 years . What is the amount at the end of 16 years?
Gary King will deposit $27500 into an account today that earns 13% per year compounded annually. Using the following factors, what is the amount that will be in the account at the end of the 5 years? Type of Cash Flow Periods Interest Rate Factor PV of $1 5 13% 0.5428 FV of $1 5 13% 1.8424 PV ordinary annuity 5 13% 3.5172 FV ordinary annuity 5 13% 6.4803 PV annuity due 5 13% 3.9744 $25333 $50666 $14927 $29854
!
Q: If in your Allied Bank account you deposit Rs.15,000 at the end of each year at 14% interest rate than how much accumulate in your account after 9 years.
19, Suppose starting this year you decide to make deposits of $5,000 at the end of each year for the next five years in a bank account paying 10% interest. If you currently have $3,000 in the account how much will you have at the end of five years? 1. $25,255.05 2. $36,742.22 3. $35,357.03 4. $30,272.35 5. $28,500.60
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