Don not solve list the objective function and contraints using variables Information on a prospective investment for Wells Financial Services is given below.Period1234Loan Funds Available3000700040005000Investment Income(% of previous period's investment)Maximum InvestmentPayroll Payment110%112%113%4500800060007500100120150100In each period, funds available for investment come from two sources: loan funds and income fromthe previous period's investment. Expenses, or cash outflows, in each period must includerepayment of the previous period's loan plus 8.5% interest, and the current payroll payment. Inaddition, to end the planning horizon, investment income from period 4 (at 110% of the investment)must be sufficient to cover the loan plus interest from period 4. The difference in these twoquantities represents net income, and is to be maximized. How much should be borrowed and howmuch should be invested each period?

Variables:Let the variables represent the amount invested in each period:x1: Investment in period…

Answered: Information on a prospective investment…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $100 million. Mighty Fine Mutual Pund Monthly Data (measured at end of month) February -4.3 6.20 March January 5.5 Net inflows ($ million) HPR () -4.30 1.80 Required: a. Calculate the quarterly arithmetic average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arithmetic average 1.23 % b. Calculate the quarterly geometric (time-weighted) average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Geometric average 1.14 % c. Calculate the quarterly dollar-weighted average return on the fund. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar-weighted average return
2. An investor has a principal amount of $P. If he Interest Rate per Year desires a payout (return) of 0.1P each year, how many years will it take to deplete an account that earns 8% 4% 6% 8% 10% Payout per Year 10% (% of principal) 20% 30% 20.9 per year? 0.1P = P(A/P, 8%, N), so N ~= 21 years. A payout duration table can be constructed for select payout percentages and compound interest rates. Complete the following table. (Note: table entries are years.) Summarize your conclusions about the pattern observed in the table. (5.5)
A zero-coupon bond has a yield to maturity of 5% and a par value of $1,000. If the bond matures in16 years, it should sell for a price of __________ today.
Answer all parts complete and correct only follow steps as asked and do as per guidelines to get 100% feedback. 1) Calculate the price of a bond with 8 years to maturity, that pays a coupon rate or 3% quarterly, and face value of $10,000. Assume that the YTM is 3.5% quarterly.
What is the present value of $1.21 received at the end of two years if the interest rate is 10% and compounding is annual? a- 1.31 b- 1.21 c- 1.10 d- 1.00 Which of the following is a leading economic indicator? a- average prime interest rate charged by banks b- stock prices, 500 common stocks c- commercial and industrial loans outstanding d- industrial production
1.Calculate the present value of a growing annuity given the following information: annual cash flows = $300,000; cash flow growth rate = 3%; required rate of return = 10%; timeframe = 55 years.
A company has two independent investment opportunities. The initial capital occurs at the beginning of the first year. The company's required rate of return is 8 percent. The first option (A) requires an initial investment of 1500 million Fts with an expected life of 8 years. At the end of the 8th year company earns a yield of 4588.56 million Fts. The second option (B) requires an initial investment of 1400 million Fts with an expected life of 4 years. At the end of the 4th year company earns a yield of 2903.059 million Fts. The real profitability of the investments is between 5 and 25 percent. Calculate the Profitability Index of the project B! Give the result and choose the unit of the result. Answer:
Last one is wrong. Only typed answer please. I will rate accordingly
Use the charts to find aw of each.
A certain person invests $ 25,000 in a fund that pays 9% compound interest semi-annually. it will have 5 years at the bottom? A. $ 37,455. 19 B. $ 35,952.20 C. $ 38.824.24 D. $ 39,900.21
hi, can you show me how to solve these
Q 7 please

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