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Expert Answers

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Xuất bản 29/06/2016
http://subjecttutors.blogspot.in/2013/10/expert-answers_817.html Question 18 023A:If you can double your money in 15 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the box. Question 19 027:Say, you deposit $4,561 in a bank for 17 years. What is the amount you will have in the bank at the end of 17 years if interest of 4 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Question 20 The ABC Company is considering a new project which will require an initial cash investment of $5,305. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $2,535, $5,878, $3,302, and $2,824, respectively. If the appropriate discount rate is 5%, compute the NPV of the project. Question 21 If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)? Question 22 What is the future value of $2,029 invested for 6 years at 12% if interest is compounded semi-annually (twice a year)? Note: Do not put $ sign in your answer. Simply write the number in the box. Question 23 Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year. Question 24 The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,581 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $156,868. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the box. Question 25 Assume interest rate of 10%. A company receives cash flows of $534 at the end of year 5, $213 at the end of year 7, and $912 at the end of year 10. Compute the future value of this cash flow stream. Question 26 If you can triple your money in 8 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the box.. Question 27 How many years it will take to grow your money from $3,284 to $7,572 if you can earn an interest of 5% compounded monthly? Note: Do not write "years" in your answer. Simply write the number in the box. Question 28 If you can double your money in 8 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the box. Question 29 How much do you need to invest today in order to have $5,344 at the end of 19 years if you are sure to earn an interest at the rate of 10%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the box. Question 30 The ABC Company is considering a new project which will require an initial cash investment of $10,077. The projected cash flows for years 1 through 4 are $6,379, $8,117, $9,346, and $4,508, respectively. If the appropriate discount rate is 10%, compute the NPV of the project. Question 31 Assume interest rate of 3%. Suppose that you receive $107,219 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value. Question 32 How many months it will take to grow your money from $4,694 to $6,134 if you can earn an interest of 12% compounded monthly? Note: Do not write "months" in your answer. Question 33 In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years. Question 34 How much do you need to invest today in order to have $3,763 at the end of 27 years if you are sure to earn an interest at the rate of 11%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the box. Question 35 026:Say, you deposit $1,557 in a bank for 18 years. What is the amount you will have in the bank at the end of 18 years if interest of 8 % for first 7 years and interest of 8 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the box. Question 36 Kelly starting setting aside funds 10 years ago to buy some new equipment for her firm. She has saved $4,755 each quarter and earned an average rate of return of 9 percent. How much money does she currently have saved for this purpose?