Annual rate of return

Q: What is the future value of an initial $100 after 3 years if it is invested in an account paying 10…

A: Future value is defined as the current asset value at the date of future on the basis of an assumed…

Q: What is the effective annual rate (EAR) if the stated rate is 8 percent and compounding occurs…

A: In this question we need to calculate the effective annual rate (EAR).

Q: What is the effective annual rate for an APR of 10.30 percent compounded quarterly?

A: Effective Annual Rate: It represents the real annual rate considering the compounding effects are…

Q: Annual payment # of years Rate Output area: a) PV of ordinary annuity PV of annuity due b) FV of…

A: Annual Payment = pmt = $14,500Time = nper = 5Interest Rate = rate = 7.1%

Q: Define effective (or equivalent) annual rate (EAR or EFF%)

A: The effective annual interest rate is the real return on reserve funds or savings account or other…

Q: What is the effective annual rate of 8.25 percent compounded quarterly? a. 8.38 percent b. 8.49…

A: The effective annual rate is calculated to take effect of compounding in a simple rate of return. It…

Q: Question 3: Define the Followings • Annual Percentage Rate • Effective Annual Rate

A: Annual percentage rate (APR): The yearly rate that borrower pays on loan and investors receives on…

Q: 14 Intiaully investment fix rate compund count A =Pert 6 years 1652 fin in rate per year % to noun…

A: Dear student, here is the answer to your assignment question in a step-by-step format as per your…

Q: Number of years to provide a given return   In the information given in following​ case, determine…

A: Initial amount = $185,500Annual cash flow = $71,963Rate of return = 14%

Q: over the past 3 years an investment returner( per year)20%,-13%,5%. what is thr annual standard…

A: Given:

Q: What are liabilities that usually will be due in more than one year called?

A: Liability is obligation which is to be settled If it is expected to be settled in more than a year…

Q: Which alternative offers you the lowest effective rate of return?     APR        Compounding a.…

A: The below expression can be used to calculate EAR:

Q: For a given APR and time period, present values will      _______________ (increase, decrease, or…

A: Money received today is worth more than money due at a later date, according to the time value of…

Q: What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded…

A: Effective annual return is the rate of return on the investment after taking the effects of…

Q: A project get continuous stream of income with constant rate of $100 per annum from t=0 to t=4, t is…

A: We have to find the accumulated value of an annuity, sometime in future.

Q: What rate compounded quarterly is equivalent to 10% simple discount rate for 2 years?

A: Compounding interest is the additional interest to the principal sum of the amount.

Q: Given a 10% APR, what is the Effective Annual Rate, given quarterly compounding? _%

A: Effective rate = [ 1 + ( APR / Number of compounding per year ) ]Number of compounding per year - 1

Q: McCann Company has identified an investment project with the following cash flows Year Cash Flow 1…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: Economics i=15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a)…

A: The payback period refers to the time required by an investment to cover its initial investment.…

Q: Find the APR for an investment with EAR of 7.93% and semiannual compounding

A: The APR is computed by using the formula of the EAR as follows: EAR = (1 + APRCompounding…

Q: Description FV = $1,000 V = $1,100 CR = 8% n= 10 years What is the yield to maturity?

A: FV = $ 1000 V = $ 1100 CR = 8% C = FV*CR    = 1000*0.08    = $ 80 n = 10 Years

Q: Term Discounting Time value of money Amortized loan Ordinary annuity Annual percentage rate Annuity…

A: Future value:Future value is calculated using the rate of return, number of years, payment per…

Q: Merrill Corp. has the following information available about a potential capital investment: Initial…

A: NPV means PV of net benefits which arises from the project during the life of the project. It is…

Q: If the discounting rate decreases and the no of years increases what will be the impact on future…

A: Future Value: It is the value of money compounded over a period of time at a particular interest…

Q: each semi-annual payment

A: A fixed value periodic payment is called an Annuity. The question involves calculating the value of…

Q: Q1. (a) What effect does compounding interest more frequently than annually have on: (i) future…

A: Compound Interest is the interest on a deposit or loan calculated on the basis of initial interest…

Q: Question 14.05 Consider two annuities that have the same yield and make annual payments. The first…

A: Macaulay duration is a concept used in finance and investment analysis to measure the weighted…

Q: How can the initial investment be depreciated on a seven-year MACRS?

A: If a company purchases a fixed asset, the value of the asset cannot be same every year. The value of…

Q: 14. An investment earns an annual interest rate of 12 percent compounded quarterly. What is the…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: What is the effective annual rate for an APR of 15.10 percent compounded monthly? O 15.98% 15.18% O…

A: The effective annual rate (EAR) is the true annual interest rate that takes into account the…

Q: Comparing Taxable and Tax-Free Yields.  With a 28 percent marginal tax rate, would a tax-free yield…

A: We need to compare the after tax yield of taxable instrument with the yield of tax free instrument.…

Q: What is the annualized investment rate % on a Treasury bill that you purchase for 9310 that will…

A: Value at the maturity (F) = 9533 Purchase price (P) = 9310 n = 91 days

Q: What is the quarterly effective rate equivalent to a nominal rate of 200% p.a. capitalized monthly?

A: Interest Rate = 200%

Q: What is the present equivalent of $18094 to be received in 24 years when the interest rate is 5 %…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: What is the annual percentage yield on a fund which earns 4.6% compounded weekly?

A: interest rate = r = 4.6% Compound = weekly = n = 52

Q: Which of the following compounding frequencies will produce the smallest future value?…

A: Future Value refers to the value of the current asset or investment or of cash flows at a specified…

Q: 14. An investment earns an annual interest rate of 12 percent compounded quarterly. What is the…

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: At what nominal rate c.q. does money double in 10 years?

A: Compounding refers readjustment of principal by adding interest earned or due till date to principal…

Q: Maintenance expense in a waste treatment facility continue to increase uniformly for a period of…

A: Since you have posted multiple questions at once we will solve the first one for you. To get the…

Q: Problem 5 Given the following spot rates and forward rates (in percents) for the effective years:…

A: Spot rate - Spot rate is also known as the spot price is the price quoted for immediate settlement…

Q: semi-annual payment i

A: A fixed value periodic payment is called an Annuity. The question involves calculating the value of…

Q: What is the effective annual rate for an APR of 15.70 percent compounded monthly?

A: The effective annual Rate will be computed according to the formula..... i=(1+rm)m−1.. Where rm…