Forty eight monthly deposits are made into an account paying 6% nominal interest per year compounded monthly. If the objective of these deposits is to aCcumulate $200,000 by the end of fourth year, what is the amount of each deposit? Lütfen birini seçin: O A. $3,952 O B. $3,700 O C. $4,100 O D. $4,167 O E. $3,743

Q: Deposits are made at the end of years 1 through 7 into an account paying 6% per year interest. The…

A: Future value  is the worth of any asset or any sum of money at a future date when such asset or…

Q: A deposit of $1300 will be after 3 years $1639. If the interest is compounded annually, what is the…

A: In the given question we are required to calculate the annual interest rate using following…

Q: An investor deposits $500 into each of three accounts. The first account earns simple interest at an…

A: The accumulated amount of annuity can be found by using the formula function for future value in the…

Q: Starting three years from today, you make equal annual deposits of $5,000 into an account which…

A: Effective annual rate is calculated using the formula: EAR=1+rmm-1=1+12%22-1=1.062-1=12.36%

Q: A depositor opens a new savings account with 8,000 at 8% compounded semiannually. At the beginning…

A: The concept of time value of money will be applied here. We have to find the amount at the end of…

Q: Bank A offers accounts that pay 5% compounded daily and Bank B offers accounts that pay 12%…

A: Particulars Bank A Bank B Deposit Amount 12000 12000 Rate of Interest 5% 12% Compounding…

Q: Robert deposit $5000 into an account paying simple interest at a rate of 2.5%. A. Give the future…

A: The formula to calcuate simple interest is  P*r*t Where P is the amount deposited  r is the interest…

Q: Deposits of $500 are made at the end of every month for five years into an account earrfing 4.5%…

A: In this we have to calculate future value FACTOR and from that determine the future value of money.

Q: 6667.63 is deposited in a bank that pays 18% annual intere compounded monthly. At the end of the…

A: Here the FV at the end of last withdrawal is 0.

Q: A given account accrues two kinds of deposits for a period of 7 years. One is a leveled deposit of…

A: Deposit account is a financial service offered by banks and other financial institutions to their…

Q: An account pays interest at 1.5% per month. If you deposit $5000 at the beginning of this year, how…

A: Future Value = Present Value * (1+rate)^n Where, Present value =$5000 rate = 1.5% or 0.015 n = no of…

Q: Determine the value at the end of five years of a $7,000 investment (today) in a bank certificate of…

A: Future Value = Present Value * (1+rate)^n Where, Rate = 9%/2 = 0.045 n = no. of compounding period =…

Q: Suppose that you deposited $1,000 in a savings account at the beginning of a year where the annual…

A: Deposit = $1,000 Annual interest rate = 18% Compounding = monthly

Q: If a deposit of $100 is made on the first day of each month into an account that pays 6% interest…

A: The compounding method is used to determine the future value of cash that is deposited today. Given;…

Q: The amount that accumulates in 3 years if $ 2,500 is deposited at the beginning of each month in a…

A: Monthly payment = $2,500 Interest rate = 6.3% Time period = 3 Years

Q: How much money would you need to deposit today at 8% interest compounded quarterly to have $15,000…

A: Compounding interest the interest you earn interest on interest amount.

Q: What nominal rate of interest, compounded quarterly

A: To calculate the nominal rate of interest compounded quarterly over the first ten years, we need to…

Q: A- A person deposited $40,000 at a bank at an interest rate of 16% compounded quarterly. Find the…

A: Deposited amount= $40,000 Interest rate (r)= 16% Compounding Frequency (n)= quarterly Effective Rate…

Q: Assuming a 360-day year, when a $14,700, 90-day, 12% interest-bearing note payable matures, total…

A: The term note payable refers to the promissory agreement between two parties in which one party…

Q: If for the next 30 years you place $2,000 in equal year-end-deposits into an account earning 5% per…

A: Future Value of Ordinary Annuity refers to the concept which gives out the compounded or future…

Q: Mark Welsch deposits $8,100 in an account that earns interest at an annual rate of 8%, compounded…

A: Compound = Quarterly = 4Present Value = pv = $8100Interest Rate = r = 8 / 4 = 2%Time = t = 5 * 4 =…

Q: You deposit $400 in an account earning 8% coumpound interest for 2 years. Find the future value and…

A: Given That: P=$400 r=0.08 t=2 years

Q: You deposit $1,000 in the bank at an annual interest rate of 8%. Interest is compounded once per…

A: Present Value, PV = $1,000 Interest rate per period, r = 8% Number of compounding periods, n = 1 The…

Q: Sixty monthly deposits are made into an account paying 8% nominal interest compounded monthly. If…

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv],…

Q: If you deposit $368.00 into an account paying 15.46% annual interest compounded quarterly, how many…

A: The concept of time value of money will be used and applied here. As per this concept the worth of…

Q: at the end of each month Rate-6.25% compounded monthly Time-45 years Financial Goal-$1,500,000 a.…

A: Periodic deposit refer to the payment that is made in form of equal deposits up to a specified…

Q: James made an initial deposit into an account of $1,000 at time t = 0, followed by five annual…

A: Present Value(PV) refers to current value of amount that is to be paid or received in future. It is…

Q: A deposit of $800 is planned for the end of each year into an account paying 8 percent/year…

A: Given, Annual deposit = $800 Interest rate = 8% p.a  (Compounded annually) Deposits were not made…

Q: $10,000 is being deposited at the end of each year into an account that pays nominal interest of 12%…

A: Here, Particulars Values Equal annual deposits (PMT)  $ 10,000.00 Nominal interest rate…

Q: You just obtained a loan of $12,157 with monthly payments for four years at 5.77 percent interest,…

A: $284.23.Explanation:The principal, or $12,157 in this case, is the initial loan amount.The annual…

Q: A $35,000 bank loan is to be repaid in equal yearly payment over 15 years at an effective annual…

A: The amortization refers to the systematic, equal and regular repayment of loan amount for the period…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.