An investor buys a share of stock for $40 at time t = 0, buys another share of the same stock for $50att 1, and sells both shares for $60 each at t - 2. The stock paid a dividend of $1 per share at t=1and at t-2. The periodic money-weighted rate12.4%23.8%19.3%11.6%

Money Weighted rate of return is the return where weights are given according to the amount of money…

Answered: An investor buys a share of stock for…

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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Sally purchases a perpetuity immediate with annual payments that pays $1000 today and Payments increase by 2% per year. She will pay for it with a single payment exactly 3 years from today. Assume a constant force of interest of 10%. Calculate the size of the payment at time 3.
Investmenta. Graph the function S = 56,000 (1.09t ),whichgives the future value of $56,000 invested at 9%,compounded annually, for t years, 0 <= t <= 15.b. Find the future value of $56,000 invested for13 years at 9%, compounded annually.
(1.1) Your client wants to buy a house in 10 years. They currently have $1,400 saved up and are going to save $225 per month towards a downpayment. They will put this money in a safe account that does not earn any interest. How much will they have in the account after 5 years?
Use the formula for continuous compounding to compute the balance in the account after 1, 5, and 20 years. Also, find the APY for the account. A $6000 deposit in an account with an APR of 3.4%. The balance in the account after 1 year is approximately $6207.51. (Round to the nearest cent as needed.) The balance in the account after 5 years is approximately $ 7111.83. (Round to the nearest cent as needed.) The balance in the account after 20 years is approximately $ 11,843.27. (Round to the nearest cent as needed.) The APY for the account is approximately 3.46 % (Round to two decimal places as needed.)
2. A loan Lis repaid using increasing payments. The first payment, made at t = 1, is of amount 200, and each subsequent payment increases by a factor of (1.05), with the last payment at t = t= 10, the borrower decides to make an additional payment of X, which allow him to halve the size of the remaining payments (t = 11, ., 20). Determine L and X if the effective interest is 8%. 20. However, at %3D
A house costs $150,000. The terms of the sale are 10% down payment and the remainder to be paid in monthly payments over 10 years at an annual rate of 4.25% compounded monthly.When15000 X 10/100 = 15000 the balance = 15000 – 15000 = $135,000 (P). You decide to pay an extra $50.00 per period as you pay back the loan. By doing this, you will decrease the loan duration by approximately 117 periods. In addition to paying an extra $50.00 per period as you pay back the loan, you decide to make an exrra payment of $5000 at fifth period. By doing this, you will decrease the original loan duration by approximately how many periods?

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An investor buys a share of stock for $40 at time t = 0, buys another share of the same stock for $50 at t 1, and sells both shares for $60 each at t = 2. The stock paid a dividend of $1 per share at t=1 and at t 2. The periodic money-weighted rate