An investor makes a 14 year deposit of $6,991. The bank is paying an interest rate of 16.69% per year, compounding monthly. Calculate "n" (number of periods).
Q: Which credit risk management model can help to resolve Washington Mutual credit risk issues
A: Washington Mutual, one of the largest banks in the United States, experienced significant credit…
Q: A demand loan of $8000.00 is repaid by payments of $4000.00 after two years, $4000.00 after four…
A: A loan is a contract between two parties where money is transferred with the promise of repayment…
Q: What are the essential components of financial plan.
A: A financial plan is a comprehensive strategy that outlines an individual's or organization's current…
Q: Kessen Inc.'s bonds mature in 7 years, have a par value of $1,000, and make an annual coupon payment…
A: In the given case, we have provided the par value of bond . It is a maturity value of bond. Since,…
Q: Your uncle told you that he would give you his coin collection. He just got it appraised and it is…
A: Future Value: It represents the expected value of the present sum of the amount in the future. It…
Q: Following are the probability distribution of returns of portfolio of Stock A and Stock B in equal…
A: The expected return on the stock is the return that the company provides on average to all its…
Q: the interest is nominal is that still good for this answer?
A: Formula used is: (1+Real rate) *(1+Inflation rate)= (1+ Nominal rate)
Q: Gater Products currently has $2,000,000 in accounts receivable and its days sales outstanding (AR /…
A: This is related to financial ratios. Financial ratios are based on the mathematical relationship…
Q: A purchaser has a total weekly income of $788 The lender is using a 26% housing expense ratio. Based…
A: Housing expense ratio is compares housing expense to pre-tax income.
Q: The 6-month Treasury bill spot rate is 4.60%, and the 1-year Treasury bill spot rate is 4.44% What…
A: A forward rate is an interest rate determined today for a future period. It is the rate at which one…
Q: The average number of boys in 1A, 1B and 1C is 18. This is 4 more than the average number of girls…
A: Average number of boys = 18 Total number of boys = 18 × 3 = 54 This is 4 more than the average…
Q: You can afford monthly deposits of $300 into an account that pays 4.2% compounded monthly. How long…
A: monthly deposits = p = $300 Interest rate = 4.2 / 12 = 0.35% Future value = fv = $7700 Time = t =…
Q: Current 1-year spot rate is 3.5%. Annual volatility of interest rates is 10%. If r₁=4.5%, calculate…
A: A bond is a type of debt security issued by the lender to the borrower for raising funds at a fixed…
Q: semi-annual interest payments of $30. Bond B makes an annual payment of $50. All else equal, which…
A: Bond is investment by bond holder calculate price of bond , we consider the interest payment done .…
Q: Determine the cost of Debt of the company
A: Initial cost includes the cost of equipment, installation cost and increase in net working capital.…
Q: Three $25,000, 11% bonds with semi-annual coupons redeemable at par were bought eight years before…
A: Price of the bond is the PV of future coupons and par value discounted using the Yield to maturity.…
Q: A doctrine under which a principal or an employer is held liable for the wrongful acts committed by…
A: Option D "vicarious liability." Explanation This is a legal principle that holds employers or…
Q: A credit card bill of $660 was due on July 1. Purchase of $375 were made on July 7, and $310 was…
A: Credit card issuing companies charges monthly interest on any unpaid balance. For computing the…
Q: Problem 7-21 Dividend Yield [LO 3] You've collected the following information from your favorite…
A: Given: Georgette inc Amount Highest price 55.91 Low price 33.52 Dividend 1.64 Dividend…
Q: Vigour Pharmaceuticals Ltd. is considering investing in a new production line for its pain-reliever…
A: Initial cost includes the cost of equipment, installation cost and increase in net working capital.…
Q: Explain the main conceptual purpose for calculating discounted net cash flows as opposed to using…
A: Discounted net cash flows (DNCF) are used in mining project analysis to determine the present value…
Q: The yield to maturity of a $1,000 bond with a 6.6% coupon rate, semiannual coupons, and two years to…
A: The bond price is based on the discounted value of future cash flows coming from the bond. This…
Q: Angelo Lemay borrowed $8000 from his credit union. He agreed to repay the loan by making equal…
A: MS-Excel --> Formulas --> Financials --> PMT Therefore, the size of the monthly payments…
Q: Frank purchased Bond F four years ago, when the market interest rate was 13% APR. Today, the bond…
A: Par value = $1000 Number of periods to maturity = Number of years*2 = 8*2 = 16 Semiannual coupon…
Q: During the 1927-2018 period the Sharpe ratio was greatest for which of the following asset classes?…
A: Sharpe ratio shows the comparison between the return and risk of an investment. It reflects the…
Q: A credit card bill for $657 was due on April 14. Purchases of $155.56 were made on April 19. The…
A: the average daily balance technique multiplies the credit card amount for each day of a billing…
Q: You are running a passive strategy that has delivered 8% above your benchmark last year. You are…
A: While achieving 8% above the benchmark is a positive result, it is important to recognize that past…
Q: Bronze It Tanning Salon expects annual sales of $1,175,000, annual fixed cash outlays are $586,000 a…
A: The difference between the current value of cash inflows and outflow of cash over a period of time…
Q: You are running an active strategy and you are told by your boss to use a universe of 100 market…
A: Main steps of building a multivariate regression model using a universe of 100 market drivers to…
Q: New houses in a neighborhood are selling for $175,000. A down payment of $18,000 is required and a…
A:
Q: Is the technical or fundamental analysis a more effective strategy and why?
A: Technical analysis and fundamental analysis are two popular methods used in finance for investment…
Q: Assume the marginal corporate tax rate is 21 percent. The firm has no debt in its capital structure.…
A: Value of the levered firm (with debt) can be determined with the formula below: Value of levered…
Q: XZYY, Inc. currently has an issue of bonds outstanding that will mature in 24 years. The bonds have…
A: The face value of the bond is $1,000. The annual coupon rate is 13%. The current price of the bond…
Q: You deposit $137987 at 4.6% per year in a saving account. What is the interest at the end of one…
A: Under compound interest, the interest will be calculated on the interest earned and the deposit…
Q: A $180,000 mortgage is to be amortized by making end of the month payments for 25 years. Interest is…
A: Information Provided: Mortgage amount = $180,000 Period of mortgage = 25 years Interest rate =…
Q: Duffs Co. Is growing quickly. Dividends are expected to grow at a 24% rate for the next three years,…
A: In calculation of stock price, with consider expected dividend of the stock and considering the…
Q: 1.suppose a bond has 4 years to maturity and a coupon rate of 6 percent. the bonds yield to maturity…
A: We need to use bond price formula below. Bond Price(PV) =PMT1-1(1+i)ni +FV(1+i)n where PMT…
Q: A Delphi panel is A. an architectural feature of ancient Greek temples B. a method for exploring…
A: The delphie is said to be have different believe by different group of people and group they are…
Q: Cost of the asset, I Useful life, N Salvage value, S $130,000 5 years $5,000 Compute the annual…
A: Straight line depreciation is a method used to allocate the cost of a tangible asset equally over…
Q: A bond with a coupon rate of 5% has a YTM of 3%. The bond is trading? a. at a permium b. at…
A: Bond: It represents debt security issued by the issuer to raise debt capital from the investors.…
Q: Une year ago, an investor purchased a 10-year 8% annual coupon bond at par of $1,000. Today (with 9…
A: As per the given information: Par value of bond = $1,000Maturity period = 9 yearsYield rate = 7.10%…
Q: Analyzing the changes in cost structure and profitability based on different strategic scenarios is…
A: Analyzing changes in cost structure and profitability based on different strategic scenarios is a…
Q: Practice Questions: Liabilities are RO 1,000 and equity is half of liabilities. Find the amount of…
A: According to the balance sheet equation,Assets = Liabilities + Shareholders' equity
Q: A washer-dryer combination can be purchased from a department store by making monthly credit card…
A: Purchase price refers to the price at which an investor pays for buying an investment. It is used…
Q: a) Calculate the after-tax cost of borrowing from the boat dealership. b) Calculate the after-tax…
A: Interest rates are the rates at which borrowers can obtain funds from lenders. Different types of…
Q: £1443 paid at the end of each year for the first 4 years followed by £1441 paid at the end of each…
A: Annual payment for first 4 years = £1443 Annual payment for 15 years (including first 4 years) = p =…
Q: Common stock value—Variable growth Personal Finance Problem Home Place Hotels, Inc., is entering…
A: Calculate the stock price we consider the variable growth rate of return with adjusting the expected…
Q: A contractor is computing the total price of his bid for a construction project . His initial outlay…
A:
Q: brought a sum of money for his trip. On the first day, he spent of his mo misplaced $4. On the…
A: When doing expenses, the left over money at the end must be equal to the initial money less all…
Q: Some recent financial statements for Earl Grey Golf Corp. follow. Current assets Cash Accounts…
A: Step 1 A financial ratio, also known as an accounting ratio, is the difference in magnitude between…
An investor makes a 14 year deposit of $6,991. The bank is paying an interest rate of 16.69% per year, compounding monthly.
Calculate "n" (number of periods).
Step by step
Solved in 2 steps
- An investor makes a 15 year deposit of $57,632. The bank is paying an interest rate of 11% per year, compounding twice a year. Calculate "i" (interest rate per period) correct to 2 decimal places. Please do not enter "%" into your answer boxSuppose you make quarterly deposits of $1,500.00 into an account that pays an interest at a rate of 6% compounded monthly. Find the balance of the account at the end of year 2.The Bank pays $1,200 in a bank deposit after a period of 12 years at an annual interest rate of 6.5% How much should you deposit in your bank account now Future Value ? Discount Rate/Period ? No. of Periods ? Present Value ?
- You have a 2-year certificte of deposit in the bank. It is paying 6% annual interest, compounded monthly. At the end of the term, your account value is $880.30. What was the initial balance of the account? Please explain using the equation in the given image, not Excel. Thank you.Your bank is offering a certificate of deposit with an APR of 6.02% compounded monthly. What is the effective annual rate?A bank quotes you a nominal interest rate of 12%, compounded monthly, on a savings account. What is the effective annual rate? %
- Determine the interest rate earned on a $1,500 deposit when $1,680 is paid back in one year.A bank offers the following interest rates on your deposit: (Draw the Cashflow) 10% per year, compounded quarterly 9% per year, compounded monthly (a) Determine the effective rate for each on the basis of semiannual periods. (b) What are the effective annual rates? (c) Which bid has the lowest effective annual rate?ou deposited some amount of money to the bank at the annual interest rate of 0,1% being compounded quarterly. How many years (approximately) it will take for the deposit to double?
- Suppose you invest $103 nin a bank account, and five years later it has grown to $137.91. a. What APR did you receive, if the interest was compounded semiannually? b. What APR did you receive if the interest was compounded monthly?You are considering investing $8,500 in a bank term deposit for 5 years. The term deposit will pay quarterly interest of 3% (compounded quarterly). What is the value of this deposit at the end of year 3? A. 11,560.00 B. 15,351.95 C. 9,853.83 D. 12,118.97A bank pays simple interest at the rate of 8% per year for certain deposits. If a customer deposits P10,000 and make no withdrawal for three years what is the interest earned in that period of time?