In order for you to obtain $70,000 to purchase a guitar in 6 years, how much must be deposited at the end of each quarter at 6% annual interest compounded quarterly? $2224.69 $2444.69 $4244.70 $3762.13

Q: You borrow $12,000 for educational expenses (ie, a student loan). Six months after graduation you…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: what is the future value of $13000 received today and deposited 7 years in an account that pay 12%…

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: At what effective annual rate of interest i will a payment of $7,000 accumulate to $8,179.57 in 4…

A: An effective annual rate is defined as the rate of an interest, which is actually earned on…

Q: Leslie borrowed $25,000 at a rate of 6% compounded monthly (j12) for a term of 10 years. Calculate…

A: The loan is repaid in equal monthly instalments. Each instalment has interest and a portion of the…

Q: What is the amount of 10 equal annual deposits that can provide five annual withdrawals, when a…

A: Number of deposits = 10 Number of withdrawals = 5 First Withdrawal = 3000 First withdrawal at end of…

Q: Find how much needed to deposit now at 9% interest compounded annually to yield a annuity payment of…

A: The present value of annuity due refers to the current value of a series of future payments. The…

Q: You will pay a tuition cost of $50,000/year for 4 years and the first payment is due yearend. If…

A: The amount that should be deposited today is equal to the present value of the tuition cost for four…

Q: Starting the beginning of next year, you expect to receive four consecutive annual payments of $700…

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

Q: Find the accumulated value 16 years after the first payment is made of an annuity on which there are…

A: The payment is $850. The annual rate of return is 4.1%. The payments are made once every two months…

Q: Determine the present value of $5,000 that is received at the end of 4 years given that the annual…

A: Present value is the current value of any specified amount which will be received in future at…

Q: If you need to pay $12,000 after 7 years for the money you borrowed from a friend, how much will you…

A: To calculate the loan amount we will use the below formula   Borrowed amount = MV/[1+(r/m)]t*m Where…

Q: you buy a store worth $250,000 with 20 percent down. The balance is to be paid off with equal annual…

A: Purchase Price of Store = $250,000Down Payment rate = 20%Time = t = 30 YearsInterest Rate = r = 9%

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent.…

A: Note: Since the payment is being made on monthly basis, the effective rate of interest will be…

Q: Ive ye is the payback period for - If their acceptance peric

A: The Payback period is the amount of time needed to earn back the cost of an investment. This method…

Q: You deposit $24,000.00 in an account that pays 6% compounded quarterly and immediately start making…

A: In this problem you have to find out present value FACTOR and find out quarterly deposits.

Q: Mr. O got a 5 year, 100,000 dollars balloon commercial loan. The annual interest rate is 6% and the…

A: Loan amount (L) = $100000 r = 6% per annum = 0.5% per month n = 30 years = 360 months Let X =…

Q: What amount of money deposited 70 years ago at 3% interest would provide a perpetual (i.e. infinite…

A: Perpetual Amount Formula = Annual Amount/ Interest rate  Annual Amount = $ 23,000 Interest Rate = 3%…

Q: A company has a $160,000 note due in 3 years. How much should be deposited at the end of each…

A: Solution:- When an equal amount is deposited at end of each period, it is called ordinary annuity.…

Q: need answer step by step

A: The correct answer is D. If the NPV of the project is positive, the IRR must be higher than the…

Q: if $875 000 is saved for retirement, what rate of interest, compounded semi-annually, will provide…

A: We will use the concept of time value of money here. As per the concept of time value of money the…

Q: 0. The The Hendrix Company needs to repay a note payable of S $100,000 into a savings account at the…

A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…

Q: You borrowed $5,000 at 7% compounded annually. Your payments are $1,219.45 at the end of each year.…

A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Nper…

Q: You deposit $201 at the end of each quarter into an account that pays a nominal annual rate of 16%…

A: The account value at end of 15 years can be calculated with the help of future value of annuity…

Q: What's the future value of an $1,100 quarterly payment for 25 years at 7% annual interest rate?…

A: Future value of annuity formula.FV = A* whereFV = Future value of annuity A = periodic paymentsr =…

Q: Suppose that you have borrowed $125,000 in the form of a 30-year loan with an annual interest rate…

A: A loan payment includes the interest as well as the principal amount of loan which has been obtained…

Q: The monthly premium on a five-year insurance policy is $25 payable in advance What is the economic…

A: Formula: Future value = Present value x ( 1 + r )N Present value gets multiplied with rate of…

Q: 02: A $150000 real estate loan at 9% compounded monthly is repaid by monthly payments over 20 years.…

A: Amortization schedule refers to the statement showing the amount of payment made on each period…

Q: Calculate the accumulated value of quarterly payments of $100.00 made at the end of each quarter for…

A: The future value of an ordinary annuity is a financial concept that calculates the total value of a…

Q: If you were offered $1000 today of $1050 in one year which would you accept if money can be invested…

A: A concept that implies the future worth of the money is lower than its current value due to several…

Q: has been bought by an individual. -annually, eight times a year for 1 payment. If the payment is to…

A: In this we have to calculate the interest rate for period and find out future value.

Q: 14. A potential investor is willing to provide $500,000 in first-round financing with the…

A: The first step is to calculate the future value of the investment. The investor expects a 50% annual…

Q: If you deposit $2,000 into an account at the end of each of the next 40 years, at 4.5% interest, how…

A: It can be solved using  In excel FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate for the…

Q: An insurance policy pays $50,000 immediately or $4,000 every 6 months for 10 years beginning now.…

A: Interest rate refers to the charge at which the loan is to be provided by the lender to the borrower…

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: You have been making quarterly contributions to your savings account for the last your contributions…

A:

Q: 5. Jaycee plans to deposit P500 at the end of each month for 10 years at 12% annual interest,…

A: The future value of the annuity is the future worth of a series of cash flows at a certain rate of…

Q: In order for you to obtain $80,000 to purchase a cello in 7 years, how much must be deposited at the…

A: In this question we need to compute the quarterly deposit amount from below details: Future value…

Q: You wish to save $76000 in an account which pays 5% compounded semiannually by making annual…

A: FUTURE VALUE OF ANNUITY =A×1+RMN×m-1RM WHERE, A=annuity R=rate of interest N= number of years M=…

Q: How much should you deposit in an account so that you can withdraw $5300 every year for the next 18…

A: Using excel PV function

Q: 4. The amount that must be set aside today to enable annual payments of $40,000 each for 5 years,…

A: Annuity is the series of equal cash payments over the period.

Q: A $150,000 home is financed by a 30-year, 9 percent fixed-rate mortgage loan with 20 percent down…

A: given, cost of home = $150,000  downpayment = 20% principal of loan = cost of home x ( 1-…

Q: A saving plan offered by the Charles Schwab Corporation offers 7% per year. How much money must be…

A: Interest rate (r) = 7% Let the annual deposit = A Future value of annuity due = $79142 n = 9 years

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.