Q: What is the Call plus Bond Option strategy?
A: Call option and bond It is a financial instrument that gives its holder the right to buy the…
Q: Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital…
A: IRR is the Internal rate of return. It is that rate at which the NPV of a project is zero ie: the…
Q: 13. Find the amount and present value of an annuity of P540 payable every end of the month at 7%…
A: An annuity is a payment plan where for a lump sum paid now, we get future periodic payments. It is…
Q: Aluminum maker Alcoa has a beta of about 1.98, whereas Hormel Foods has a beta of 0.44. If the…
A: Answer - Cist of Capital formula - RF + (RM-RF) * Beta Given data - a. For ALcoa - Beta = 1.98…
Q: You may use your financial calculator or excel for calculations but be sure to show your work (i.e.…
A: Part 1: Future Value = $400,000 Rate = 2% Time period = 18 months - 12 months = 6 months Present…
Q: Should market or book value be used for debt and equity?
A: Book value for debt and equity represents the recorded value of the debt and equity in the company's…
Q: AC entered into an investment fund four years ago. The investment fund has an interest rate of 3%…
A: Interest rate is 3% compounded quaterly for first 4 years Interest rate for next 5 years us 4.5…
Q: Mr. Bolen needed P27,000 as a down payment on a new Tesla car. He borrov noney from his insurance…
A: Loans are to be paid by equal periodic payments that carry the payment of interest and principal…
Q: A father deposited a total amount of P88,500 on two different investments. The first investment…
A: The concept of the time value of money states that due to the ability of invested money to earn…
Q: What is the IRR for Machine D over a 4-year project life with the following details: Machine D…
A: Internal rate of return refers to the cost of capital that makes a net present value of project is…
Q: Georgie Ltd currently offers credit terms of 50 days to all of its customers. In practice, their…
A: Given, The average inventory is 102,000 Cost of sales 759,000 Average trade payables 72,000
Q: Use the straight line method to find the annual depreciation for a car that costs $18,000, has an…
A: Depriciation is allocation of total cost of assest over its useful life or in the ratio of benefits…
Q: weighted average cost of capital at the optimal capital structure?
A: The weighted average cost of capital refers to the firm’s average cost of capital from all…
Q: What is the nominal rate of return on an Ayala Inc.. bond if the real rate of interest is 3 percent,…
A: Nominal rate of return is calculated by adding the real rate of interest, inflation risk premium,…
Q: If a person deposits $10,000 at 10% per year simple interest, what compound interest rate would…
A: Compound interest (also known as compounding interest) is the interest on a loan or deposit that is…
Q: Question 23 $900 is due at the end of 5 years and $700 at the end of 10 years. If money is worth 6%…
A: Payment due in 5 years (P1) = $900 Payment due in 10 years (P2) = $700 Interest rate = 6%…
Q: Construct a depreciation schedule using the straight line method for a new lorry that costs $80,000…
A: Basic Introduction:- Depriciation is allocation of total cost of assest over its useful life or in…
Q: Consider the publie project at the end of the handout on "TVM and Cost-Beneft Analysis," which we…
A: NPV is the difference between Present Value of cash Inflows and Initial Investment. NPV will be…
Q: xplain the diff
A: A bond refers to the fixed income instrument which represents the loan made by an investor to the…
Q: Use a bankers year: 360 T-bills (Treasury bills) are one of the instruments the U.S. Treasury…
A: Maturity Value is $17,750 Purchase price is $17,564.46 Time to maturity is 200 days Number of days…
Q: Over the past few years, Microsoft founder Bill Gates' net worth has fluctuated between $20…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: 3.1.1 An amortized loan has 10 annual payments at the end of each year starting one year from now.…
A: Here,
Q: In an investment project, the initial cost of investment is $400,000. The annual revenues are…
A: Payback period: The payback period (PBP) is an investment assessment approach that determines how…
Q: The Fed's action did not affect the forecasted cash flows. Вy how much did the change in the…
A: Net present value (NPV) of an alternative/project refers to the variance between the initial…
Q: 30. Systematic versus Unsystematic Risk Consider on Stocks I and II: State of Probability of State…
A: Market risk premium is 7% Risk free rate is 4% To Find: Beta Standard deviation
Q: Fabulous Fabricators needs to decide how to allocate space in its production facility this year. It…
A: Given: Contract NPV Use of facility A 1.95 100% B 0.95 58% C 1.47 42%
Q: Which of the following is a good choice for a manager interested in fostering the cooperation of two…
A: At times the managers of companies may have to seek cooperation between different departments of the…
Q: The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming…
A: An expectation theory is defined as the theory, which used to attempt for predicting what the rate…
Q: Zach took $400,000 out of the bank and used it to start his new cookie business. The bank account…
A: Economic profit is calculated by subtracting explicit costs and opportunity costs from the revenue…
Q: Directions: Read each item carefully. Match Column A with the correct answer on Column B, write only…
A: The concept of annuity is the regular payments made by the depositor for earning return or payments…
Q: tive rate is 10% tive rate is 8% tive rate is 12%
A: Present value of financial liability i.e loan is the present value of future actual cashoutflows…
Q: [The following information applies to the questions displayed below.] Following is information on an…
A: Net Present Value: Net present value (NPV) is the excess of present value of cash inflows over the…
Q: A company has a $500 000 million loan with a 7% interest rate and a $300,000 loan with an 8% rate.…
A: Loan A amount = $500,000 Interest rate on loan A = 7% Loan B amount = $300,000 Interest rate on loan…
Q: Given the information below for HooYah! Corporation, compute the expected share price at the end of…
A: Given: Year 2014 2015 2016 2017 2018 2019 Price $22.00 $58.50 $130.00 $207.00 $97.00 $27.50…
Q: The capital investment committee of Arches Landscaping Company is considering two capital…
A: Given: Front end load: Year Income from Operations Net Cash Flow 1 $46,800.00 $144,000.00 2…
Q: Mr. Smith is purchasing a $90000 hoyse. The down payment is 20% of the price of the hous He is given…
A: We need to use monthly loan amortisation formula to calculate monthly payment PMT =P*i1-1(1+i)n…
Q: A new baking machine costing $10,000 is purchased. Using a declining balance rate of 15 percent,…
A: Depreciation is the systematic allocation of cost of the asset over the useful life of asset. It…
Q: What functions can be performed by an automated payroll system?
A: In finance automated payroll system is that system which uses payroll software for the purpose of…
Q: QUESTION 1 Consider the exchange rate between U.S. Dollar and New Zealand Dollar: USD/NZD. If the…
A: Nominal exchange rate is the relative price of the currencies between two countries. And real…
Q: result of winning the Gates Energy Innovation Award, you are awarded a growing perpetuity. The…
A: Present value of the growing perpetuity = Cash Flows / ( Discount Rate - Growth Rate
Q: 6 points Save 0 million and A's present value of net cash flows after tax is $245 million, Project B…
A: Projects Initial outlay (Million $) PV of net cash flows after tax (Million $) Net Present Value…
Q: Which of the following is NOT relevant to the evaluation of a proposed project? Incremental cash…
A: While eveluating a project all the initial cash flows and subsequent cash flows are considered. All…
Q: Assume that you buy a 1-year, 210,000 peso Philippine bond that pays 7 percent when the exchange…
A: In order to find the gain or loss in currency, we have to observe the fall or rise in the value of…
Q: Question 1 Chen hopes to eventually replace his old bicycle with a new one. The type of bicycle he…
A: The simple rate of interest is known as the annual flat rate of interest. It remains constant…
Q: 8. Your firm is planning to invest in an automated packaging plant. Harburtin Industries is an…
A: Equity beta (b) = 0.85 Risk free rate (Rf) = 0.037 Market risk premium (Mp) = 0.046 Cost of capital…
Q: Clark and Lana take a 30-year home mortgage of $125,000 at 7.6%, compounded monthly. They make their…
A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…
Q: Do-Well bonds have a face value of $1,000 and are currently quoted at 895. The bonds have an 8…
A: Par value = $1000 Coupon rate = 8% Annual coupon amount = Par value*Coupon rate…
Q: Assume that the risk-free rate is 4% and the required return on the market is 11%. What is the…
A: Risk free rate = 4% Market return = 11% Beta = 1.39
Q: When compounded quarterly P12,000 becomes P 20,415.23 after 4 yrs. What is the nominal rate of…
A: Present value (PV) = P12000 Future value (FV) = P20,415.23 Period (t) = 4 Year Number of compounding…
Q: Explain the following terms Authorized Share Capital Issued Share Capital Bonus Shares
A: 1) Authorized Share Capital It refers to maximum number of shares a company is allowed to issue…
Question 6
Joey invests $7,560 at 4 percent simple interest in a bank. Find the amount in the account after 9 months.
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Assignment - 11. Quiz: Savings Accounts ASSIGNMENTS COURSES SECTION 1 OF 1 QUESTION 2 OF 8 Attempt 1 of 1 1 4 7 8 <. Charlie invests $500 in a savings account with an annual interest rate of 12%. How much simple interest will he collect in 4 years? O 48 O 120 240 O 420 NEXT QUESTION O ASK FOR HELP TURN IT IN Type here to searchBella deposits $6400 in a savings account at a bank that offers interest of 1.8% on such accounts. What is the value of the money in her savings account in two year's time? Select one: a. $6,630.4 b. $6,632.5 C. $8,911 O d. d. $6,505.2 <Question 5: When you were born, your parents started to deposit monthly $2,000 in the bank. The bank offers a fixed interest rate of 15 percent. On your 18th birthday, your parents decide to withdraw the money that they deposited to pay for your college tuition. How much money can they expect to withdraw?
- incorrect, 1.3.51 A mother wants to invest $6 comma 000.00 for her son's future education. She invests a portion of the money in a bank certificate of deposit (CD account) which earns 4% and the remainder in a savings bond that earns 7%. If the total interest earned after one year is $ 360.00 comma how much money was invested in the CD account? The total interest earned after one year is $360.00 . How much money was invested in the CD account? $Clear my chOice Corry has an income of $80,000 that he is willing to spend over a year. If his bank account's interest rate is 3.05% and the cost associated for him to visit the bank is $5.00. What is Corry's average money holding? O a. $488.00 O b. $2,560.74 O c. $5,000.00 O d. $16.00 Previous page O Type here to searchQuestion Three (1 :/ Mr. Ali is a self-employed individual is opening a retirement account at a bank. His goal is to accumulate $1,000,000 in the account after 20 years. A local bank is willing to open a retirement account that pays 8% interest. Mr. Ali expects that his income will increase 6% yearly during his work. What should be size of his first deposit?
- 3- Asghar deposited Rs. 45,000 in his bank account. After 8 and half years, he has Rs. 128,000 is his account. Calculate how much simple interest the bank has given to him on his deposit account also find the simple interest rate on that account?a. 21.70%b. 20.70%c. 12.70%d. 21.07%QUESTION 4 Amy makes a deposit of R 20 000 in her bank account. The deposit is to earn an interest of 10 % for 5 years. 4.1. Calculate how much will Amy have in her account after 5 years 4.2. Calculate the present value of R100 000 received in five years, discount at the rate of 10%.Item 4 Item 4 Gordon Rosel went to his bank to find out how long it will take for $1,100 to amount to $1,420 at 11% simple interest. Calculate the number of years.
- A. Simple interest 1 Danny deposited Php 72,500 into a savings account that pays 2.3% simple annual interest. How much interest will Danny earn after 18 months? 1. Mary borrowed Php 250,000 from the company where she is connected with to buyher own car. She will pay it back in 3 years with 5% simple annual interest. How much interest will Mary pay? 2. John deposited Php 30, 000 in a savings account that pays 6% simple annual interest.Find his account balance after 9 months. 3. How long will it take to double a savings of Php 40,000, if it is deposited in anaccount that offers a simple interest of 10% per year?Question 13 Sinazo inherits R65 000 from her mother. She invests the money in a savings account. The interest rate is 12,5% p.a. compounded monthly for 18 months, and it is then increased to 14,2% p.a. compounded quarterly. At the end of 2 years he deposits R15 000. Calculate how much money she has in his savings account at the end of 5 years. OA.R151 853,11 OB. R104 853,11 OC.R150 448,66 OD.R143 841,82QUESTION 3 Sarah invests $900 into her bank account with an annual interest rate of 3.5%. Using the Rule of 70 (NOT the exact solution!) you learned, how many years will it take for her investment to reach $1800? (Round up to the nearest whole number) years
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)