Annual rate of return

Q: Estimate the annual percent rate for the add on loan Using the given number of payments and annual…

A: As per the information provided:  N = 48 R = 8% To determine: We have to estimate the annual…

Q: Under which situation is the simple rate equal to the effective annual rate, and under which…

A: Simple interest is a linear function of time since it is computed on the initial principal amount…

Q: Explain the concept of dollar cost averaging and its effect on potential returns provided there's a…

A: Investment is basically done by the investors with a hope of appreciation in  their principal…

Q: Define annual percentage rate (APR)

A: A rate at which a borrower is ready to pay and depositor is ready to receive the money is known as…

Q: What is equivalent annual annuity (EAA) method?

A: Equivalent annual annuity (EAA): Equivalent annual annuity measures the annual payments a scheme…

Q: What would cause the annual interest rate to be different from the annual effective rate or yield?

A: Effective Interest Rate: The fixed rate applied to carrying value of the bonds to calculate the…

Q: What nominal annual discount rate compounded semiannually is equivalent to a nominal rate of…

A: Nominal Interest Rate: When the market inflation is not taken into consideration while computing the…

Q: Wildhorse Inc. is considering modernizing its production facility by investing in new equipment and…

A: The profit made over an investment made by the investors is referred to as the rate of return. It is…

Q: Which of the following is the cheapest for a borrower? 7% annual money market basis 7% semi-annual…

A: Generally, the annual basis is cheaper as compared to the semiannual basis, because on an annual…

Q: If the payments are monthly how would you set up the present value?

A: The concept of present value asserts that a sum of money today is worth more than the same sum in…

Q: ic formula for present value, along with the given discount rate, r, and the number of periods, n,…

A: Present value = Future value * (1 + discount rate)-No. of periods

Q: f the interest is compounded monthly then m is equal to?

A: Compound Interest Compound Interest refers to the interest generated on principal as well as on the…

Q: what simple interest rate is equivalent to 1% compounded quarterly

A: Simple interest rate is the rate which does not compound means under this rate there is no concept…

Q: How to find the incrementa

A: Incremental cost is an additonal cost which a manufacturer incurs due…

Q: 1. Using the example of a savings account, explain the difference between the effective annual rate…

A: Saving account is the type of deposit account in which interest is paid on the amount deposited.…

Q: What is the dollar-weighted return on a $100 investment that generates annual returns of $20, $15,…

A: Return is that portion which a person receives over the investment amount during the whole period.…

Q: 1)What is '''effective annual interest rate"? 2) Explain it by numerical examples

A: There are two types of interest rate Nominal Interest Rate and Effective Interest Rate The effective…

Q: If the quarterly Income Return is 2.2% and the Quarterly Capital Return is 0.4%, calculate the…

A: Return on investment involves two elements which are, income return and capital return. The total of…

Q: What should be multiplied to the quantity of final products of the current year if we want to…

A: National income at constant prices: If goods and services produced in a year are valued at fixed…

Q: What is the annual effective interest rate equivalent to a nominal rate of 12 percent a year? Yanıt:

A: The effective rate of interest is an important technique in the case of multi-period compounding. If…

Q: Which of the following will generate the greatest future sum of money, assuming other variables stay…

A: Assumed values: Assume: Amount Present value(PV) $2,500 Years(NPER) 5

Q: diffrentiate between a regular annuity and growing annuity

A: Regular Annuity - This type of annuity generally means the Same Amount of annuity at a regular…

Q: Payback Period Modified Payback Period Net Present Value Profitability Index Accounting Rate of…

A: Here, we have to find these financial topics.

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: How to calculate monthly interest and apr

A: Wall unit cost = $2200 Down payment = $800 Monthly payment = $43.50 Period of loan = 48 months

Q: In the present value of an annuity due table, the factors ________. Group of answer choices…

A: The question is asking about the relationship between the factors in the present value of an annuity…

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: 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: Approximately what rate is needed to double an investment over five years?

A: In this question we need to compute the rate which will make the investment double in five years.

Q: Ayield curve states that the long-term interest rate is higher than the short-term interest rates.

A: A Yield Curve, also commonly referred to as "The Term Structure of Interest Rates", depicts the…

Q: Define the terms annual percentage rate (APR), effective annual rate (EFF%), and nominalinterest…

A: The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers…

Q: The (blank) interest rate is referred to as APR and the (blank) interest rate is the true rate…

A: Effective rate ( EAR) FORMULA: EAR =1+APRMM-1M = frequency of compounding

Q: Monthly interest rate?

A: Monthly interest rate is the interest charged on the unpaid balance of credit card.

Q: Number of Annual Present Value Annuity Future Value Payments or Interest Rate Years 6. 10% $301.36…

A: Future value is the value of the present cash flows after certain period. Due to interest that can…

Q: How should the $70,000 be allocated to each alternative to maximize annual return? What is the…

A: As per the given information: Investment amount - $70,000 Return on instruments: Municipal bonds -…

Q: 1/(1+Discount rate)Number of years   How do we solve this?

A: The formula given in the question seems like the formula of present value of future cash flow.…

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: The future value of an investment increases as the number of periods increases   True or Fase

A: Future value means the value of investment after x period of time compounded at the interest rate.

Q: When calculating the annual rate of return, the average investment is equal to initial investment…

A: Annual rate of return can be evaluated by dividing net income by average investment. We can measure…

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: semi-annual payment i

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