Which of the following statements are most likely to be false? I. The effective annual interest rate will always be greater than the quoted (or annual percentage) interest rate. II. All else being the same, the present value of a five-year, $10,000 annuity due will be higher than the present value of a five-year, $10,000 ordinary annuity. III. If you were depositing funds at a bank, and the quoted interest rate was 4% p.a., you would be better off if the bank used semi-annual compounding rather than quarterly compounding. I and II only. I and III only. II and III only. I, II and III.

Which of the following statements are most likely to be false? I. The effective annual interest rate will always be greater than the quoted (or annual percentage) interest rate. II. All else being the same, the present value of a five-year, $10,000 annuity due will be higher than the present value of a five-year, $10,000 ordinary annuity. III. If you were depositing funds at a bank, and the quoted interest rate was 4% p.a., you would be better off if the bank used semi-annual compounding rather than quarterly compounding. I and II only. I and III only. II and III only. I, II and III.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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Which of the following statements are most likely to be false? The effective annual interest rate will always be greater than the quoted (or annual percentage) interest rate. All else being the same, the present value of a five-year, $10,000 annuity due will be higher than the present value of a five-year, $10,000 ordinary annuity. If you were depositing funds at a bank, and the quoted interest rate was 4% p.a., you would be better off if the bank used semi-annual compounding rather than quarterly compounding. a. I and II only. b. I and III only. c. II and III only. d. I, II and III.
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No tables, ONLY formulas, please, correct answers; (i) ?′ = 0.050622??, (ii) ?^(12) = 0.048892??
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
If you deposit OMR 27177 in your account in a bank. Suppose the bank pays 12% compound interest quarterly. Calculate value of your money in 4 years Select one: a. 166607.80 b. 43611.11 c. 16935.81 d. 42749.42 e. All the given choices in this question are not correct
1. Compute the present value of a $2,000 deposit in year 1, and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) 2. How much would be in your savings account in 8 years after depositing $300 today if the bank pays 8 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 3. What is the present value of a $1,300 payment made in five years when the discount rate is 10 percent? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 4. What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) 5. A deposit of $270 earns the following interest rates: 8 percent in the first year. 6 percent in the second year. 5 percent in the third year. What would be the third year future…
May I ask for an explanation and solution to the question for a better understanding. Thank you! 11. You plan to invest an amount of money in a certificate of deposit (CD) at your bank. The stated interest rate applied to the CD is 12%, compounded monthly. How much must you invest if you want the balance in the CD account to be P8,500 in 2½ years? a. P143,302.66 b. P11,941.89 c. P6,306.34 d. P11,302.14
Suppose someone offered to sell you a note (an investment) that calls for $1,000 payment two years from today. The person offers to sell the note for $880. You have $880 in a bank time deposit (savings instrument) that pays a 6.766492 percent simple rate with daily compounding, which is a 7 percent effective annual interest rate; and you plan to leave this money in the bank unless you buy the note. The note is not risky — that is, you are sure it will be paid on schedule. a. Should you buy the note? Check the decision in three ways: i. by comparing your future value if you buy the note versus leaving your money by comparing the pv of the note with your current bank investments and by comparaing the r earon the note with your current bank
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2. Assume that you currently have $53,296 in the bank. That you are going to receive $619 yearly until the day of your retirement (22 years from now). What is the present value of all these cash flows if the interest rate is 6.84%?
With an initial deposit of 200 dollars, the balance in a bank account after t years is f(t) = 200(1.05)t dollars. What are the units of the rate of change of f(t)? Find the average rate of change over [0,1]