The returns from an investment are 5% in Year 18% in Year 2, and 15.8% in the first half of Year 3. Calculate the annualized return for the entire period. (Round your intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
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- BaghibenAssume that at the beginning of the year, you purchase an investment for $6,500 that pays $95 annual income. Also assume the investment's value has increased to $7,050 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.7% compounded monthly on the cash value of their policies Company 2: pays 4.72% compounded semiannually on the cash value of their policies What is the APY (annual percentage yield) offered by each company? (Round your answers to the nearest hundredth.) Company 1 % Company 2 % Which company offers a higher yield? O Company 1 O Company 2
- What is the IRR for a $1,075 investment that returns $190 at the end of each of the next 6 years?(Perform all calculations using 5 significant figures and round your answer to two decimal places): Answer: ____________%You plan to invest in an account which pays 4% compounded continuously. If the investment period is for 7 years, then A(P) = Pe0.04-7-Pe028 gives the total balance of P dollars. a Find a formula for A'(P) Find and interpret A'(8000) b. c. Compare the approximation to the actual change..An investments account offers a 12% annual return. If $35,000 is placed in the account for two years, by how much will the investment grow if interest is compounded (a) annually, (b) semiannually. (c) quarterly, or (d) monthly? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Initial Investment Annual Rate Interest Compounded Period Invested Future Value a. $ 35,000 12% Annually 2 years ped b. 35,000 12% Semiannually 2 years C. 35,000 12% Quarterly 2 years ook d. 35,000 12% Monthly 2 years nt
- The total amount of money in an account with P dollars invested in it is given by the formula A=P+PrtA=P+Prt, where r is the rate expressed as a decimal and t is time (in years).If $525$525 is invested at 14%14%, how much money will be in the account after 3030 months? Round your answer to two decimal places if necessary.When an initial amount of P dollars is invested at r% annual interest compounded n times per year, the value of the account (4) after years is given by the equation nt A=P(1 + =)** n Write an equation that represents the value in an account that starts out with an initial investment of $5000 and pays 10% interest compound monthly. Then use that equation to fill the table and use the table to graph the equation. Years (1) Value (4) 0 5 10 15 20 oo → KIIf the accumulated value of an investment that is growing at 3.95% compounded semi-annually is $93,924.39, and the interest earned on this investment is $47,924.39, calculate the time period of this investment. Calculate the effective interest rate for each of the following nominal interest rates: a. 2.73% compounded quarterly. b. 2.73% compounded monthly.
- Suppose that $2700 is invested in an account with an APR of 3.9% compounded continuously. Determine the value of the investment at the end of 5 years. What is the annual percent change (APY) for the account?To calculate the effective rate of return on an investment, the total compound interest earned in 1 year is divided by the _____.Use the compound interest formula to compute the balance in the following account after the stated period of time, assuming interest is compounded annually. $39.000 invested at an APR of 2.7% for 26 years. The balance in the account after 26 years is $ (Round to the nearest cent as needed.)