An Investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells oneshare at the beginning of 2020, and sells all four remaining shares at the beginning of 2021.a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-yearrates of return and final answers to 2 decimal places. Do not round other calculations.)Answer is complete and correct.Arithmetic average rate of returnGeometric average rate of retum4.94%2.92%b. What is the dollar-weighted rate of return? (Hint. Carefully prepare a chart of cash flows for the four dates correspondingto the turns of the year for January 1, 2018, to January 1, 2021. If your calculator cannot calculate internal rate of return, youwill have to use trial and error.) (Round your answer to 4 decimal places. Negative amount should be indicated by aminus sign.)Answer is complete but not entirely correct.Dollar-weighted rate of return(0.2926) O %

The rate of return is the income received by the investor on purchase and sell of the share. the…

Answered: An Investor buys three shares of XYZ at…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Straight-line DepreciationBook value is the value of an asset that a company uses to create its balance sheet.Some companies depreciate their assets using straight-line depreciation so that thevalue of the asset declines by a fixed amount each year. The amount of the declinedepends on the useful life that the company assigns to the asset. Suppose that acompany just purchased a fleet of new cars for its sales force at a cost of $31,500 percar. The company chooses to depreciate each vehicle using the straight-line methodover 7 years. This means that each car will depreciate by +31,500 7 = +4500 per year.(a) Write a linear function that expresses the book value V of each car as a functionof its age, x.(b) Graph the linear function.(c) What is the book value of each car after 3 years?(d) Interpret the slope.(e) When will the book value of each car be $9000?[Hint: Solve the equation V1x2 = 9000.]
You invest $2,000 in a mutual fund paying 9% interest. It takes about 7 years for your initial investment of $2,000 to double to $4,000. How long would it take your $4,000 to then double to $8,000? Choose the best answer. Year Beginning Interest End 180.00 $ 2,180.00 196.20 $ 2,376.20 213.86 $ 2,590.06 2,000.00 $ 1. 2,180.00 $ APR 9% 2. 2,376.20 $ 3 2,590.06 $ 233.11 $ 2,823.16 4 2,823.16 $ 254.08 $ 3,077.25 3,077.25 $ 276.95 $ 3,354.20 3,354.20 $ 301.88 $ 3,656.08 3,656.08 $ 329.05 $ 3,985.13 3,985.13 $ 358.66 $ 4,343.79 4,343.79 $ 390.94 $ 4,734.73 About 14 years About 7 years About 21 years About 10 years
James has an investment worth $175,609.50. The investment will make a special payment of X to James in 1 month from today and the investment also will make regular, fixed monthly payments of $1,440.00 to James forever. The expected return for the investment is 1.23 percent per month and the first regular, fixed monthly payment of $1,440.00 will be made to James in one month from today. What is X, the amount of the special payment that will be made to James in 1 month? An amount less than $58,600.00 or an anmount greater than $179,600.00 An amount equal to or greater than $58,600.00 but less than $88,950.00 An amount equal to or greater than $88,950.00 but less than $146,400.00 An amount equal to or greater than $146,400.00 but less than $176,000.00 O An amount equal to or greater than $176,000.00 but less than $179,600.00 Com SHEMA
Q6 Your client has been given a trust fund valued at $1.64 million. She cannot access the money until she turns 65 years old, which is in 15 years. At that time, she can withdraw $18,000 per month.If the trust fund is invested at a 4.5 percent rate, how many months will it last your client once she starts to withdraw the money? (Do not round intermediate calculations and round your final answer to 2 decimal places.) NUMBER OF MONTHS?
Mr. Del Valle is 54 years old and plans to retire in 8 years. He wants to live at least 20 years after he retires. He has $125,000 in savings and expects to earn 7% annual interest. He expects to have an income of $45,000, the same income he currently receives from his job. Del Valle will begin receiving his benefit after 8 years on a bi-weekly basis (24 payments per year) after he retires. Annual inflation is expected to reach 5%. Determine how much Mr. Del Valle must save over the next 8 years to meet the retirement goal.
7. Business In 1990, a two-bedroom apartment at Remington Square Apartments rented for $575 per month. In 1999, the same two-bedroom apartment rented for $850 per month. Assurning a constant rate of increase, what will a tenant pay for a two-bedroom apartment at Remington Square in the year 2000?

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