Which of the following would decrease the present value of $1,000 paid n years from today, given the APR is r% compounded m times per year? O A decrease in m O None of those choices O A decrease in r O A decrease in n
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- d. What is the rate of return on your margined position (assuming again that you invest $30,000 of your own money) if XTel is selling after one year at (i) $56; (ii) $50; (iii) $44? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)You see the following rate “X”: 0.3% compounded weekly A) What is the APR of X? B) What are the APY of X? C) When compared with rate “Y” that has EAR=16%, which rate would you pick if you were asked to borrow money at that rate for one year? Why?Which of the following will increase the future value of a lump sum (for example, the FV of $500 to be received N years from today) Check all of the answer choices that are correct. This is an all or nothing question Thus , if a and b are both correct and you do not put both of these or you include one of the other choices , you will receive points . A decrease in N An decrease in the number of compounding periods per year (for example , the compounding changes from four times per year to one time per year ) . A decrease in the lump sum amount . A decrease in the interest rate An increase in N An increase in the lump sum amount . An increase in the number of compounding periods per year ( for example , the compounding changes from one time per year to 12 times per year ) . An increase in the interest rate
- Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of that future sum. Assuming a positive interest rate (required rate of return), which of the following is a possible number for the present value of the $2500? Even without knowing the interest rate, it is possible to answer this question. O A. $2742.53 B. $2632.45 O C. $1967.25 OD. $2572.50 O E. None of the above is a possible number.If you invest $15,000 every year and expect to increase your investment by 6% each year for the next 20 years, what will be the present worth of your investment if it earns 7% per year? O $147,671 Reason: The geometric gradient percentage and the interest rate percentage were interchanged during the substitution. O $256,823 O $134,436 Reason: If n was 10, then this would have been the right answer. O $993,823 Reason: This is the future worth of the investment at the end of the 20th year. Correct Answer $256,823d. Assume D is $7.90. What will be the new price? Assume Ke is at its original value of 18 percent and g goes back to its origina value of 8 percent. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. New price
- What will price be in 1 year? c. What do you expect to happen to price in the following year? (Round your dollar value to 2 decimal places.) d. What is your estimate of DEQS’s intrinsic value per share if you expected DEQS to pay out only 10% of earnings starting in year 6? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Calculate the 1. payback period, 2. the net present value to the nearest whole dollar (for example 4500), 3. the internal rate of return to the nearest whole percentage (for example 12), and 4. the modified internal rate of return (to the nearest whole percent, for example 12) Period OH 0 1 2 3 4 5 CF -100,000 25000 50000 50000 3000 1000 WACC 0.125 2 A N A/c. What do you expect its price to be one year from now? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) d-1. What is the implied capital gain? (Do not round intermediate calculations. Round your final answer to 1 decimal place.)
- Indicate whether the given statements is true (T) or false (F): "For a specified value of F at EOY N, P at time zero will be larger for r = 10% per year thanit will be for r = 10% per year, compounded monthly".Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $19,000, r = 11.5%, t = 4 years The present value that must be invested to get $19,000 after 4 years at an interest rate of 11.5% is $. (Round up to the nearest cent.)What would you be ready to spend now for a P1,250 annual return over the following ten years, assuming a discount rate of 12%?A. P4,062.75B. P5,062.75C. P6,062.75D. P7,062.75E. None of the above.