Question
In: Finance
10. You invested $1,000 five years ago and that investment is now worth $1,250. Which of...
10. You invested $1,000 five years ago and that investment is now worth $1,250. Which of the following statements is most correct about the interest earned by your investment: A) Simple interest is 4.56% per annum. B) Compound interest is 5.00% per annum. C) Compound interest is 4.56% per annum. D) We don’t have enough information to compute the simple or compound interest. E) None of the above.
Solutions
jeff jeffy answered 6 months agoRelated Solutions
10 years ago you invested $1,000. If your investment is worth $6,000 now, what was your rate of return?
10 years ago you invested $1,000. If your investment is worth $6,000 now, what was your rate of return?Multiple Choicea. 17.46% +/- 1.00%b. 10.74% +/- 1.00%c. 13.12% +/- 1.00%d. 19.62% +/- 1.00%
Suppose your uncle invested $121,000 in an investment 4 years ago. The investment is worth now...
Suppose your uncle invested $121,000 in an investment 4 years
ago. The investment is worth now $237,500. The annual interest rate
(rate of return) on the investment during this period must be
______% per year.
(Do not include the percent signs (%). Round
your answers to 2 decimal places. (e.g., 32.16))
64. Five years ago, Brian had invested $14,850 in a growth fund. The investment is worth...
64. Five years ago, Brian had invested $14,850 in a growth fund.
The investment is worth $22,000 today. If the interest was
compounded annually, what is the annual rate of return earned on
the investment?
7.25%
8.18%
9.52%
10.75%
11.66%
66. Bill is considering investing $450 at the end of every month
in a fixed income instrument. He will be receiving $27,000 at the
end of 4 years. If the interest is compounded monthly, what...
Five years ago, Brian had invested $16,850 in a growth fund. The investment is worth $24,000...
Five years ago, Brian had invested $16,850 in a growth fund. The
investment is worth $24,000 today. If the interest was compounded
annually, what is the annual rate of return earned on the
investment?
1) You have an investment account that started with $3,000 10 years ago and which now...
1) You have an investment account that started with $3,000 10
years ago and which now has grown to $11,000.
a. What annual rate of return have you earned (you have made no
additional contributions to the account)?
b. If the savings bond earns 16% per year from now on, what
will the account's value be 10 years from now?
2) You are thinking of purchasing a house. The house costs
$250,000. You have $36,000 in cash that you can...
1) You have an investment account that started with $3,000 10 years ago and which now...
1) You have an investment account that started with $3,000 10
years ago and which now has grown to $11,000.
a. What annual rate of return have you earned (you have made no
additional contributions to the account)?
b. If the savings bond earns 16% per year from now on, what
will the account's value be 10 years from now?
Mr. Wilson’s house as purchased fir $280,000 five years ago and worth $300,000 now, and his...
Mr. Wilson’s house as purchased fir $280,000 five years ago and
worth $300,000 now, and his mortgage was $260,000 and amortized
over 25 years, at four percent interest, compounded semi-annuallu,
what is his equity in the house now? ( To the nearest $1000)(show
you calculation - You must assume monthly mortgage payment
frequency; hint, and use amortization schedule)
An investment was worth $38 two years ago, $52 one year ago, and is worth $46...
An investment was worth $38 two years ago, $52 one year ago, and
is worth $46 today. The holding period return for the most recent
year only (from 1 year ago to today) is
_______%. If your answer is negative, be sure to
include a negative sign preceding your answer (ex. -.045678 or
-4.5678% should be entered as: -4.57).
A(n) 3.3% bond with 6 years left to maturity has a YTM of 5.5%.
The bond's price should be $__________. You should...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...
Fifteen years ago, you deposited $12,500 into an investment
fund. Five years ago, you added an additional $20,000 to that
account. You earned 8%, compounded semi-annually, for the first ten
years, and 6.5%, compounded annually, for the last five years.
Required: a. What is the effective annual interest rate (EAR) you
would get for your investment in the first 10 years? b. How much
money do you have in your account today? c. If you wish to have $85
000...
Twelve years ago, you deposited $25,500 into an investment fund. Five years ago, you added an...
Twelve years ago, you deposited $25,500 into an investment
fund.
Five years ago, you added an additional $15,000 to that account.
You earned 9%,
compounded semi-annually, for the first 12 years, and 7.5%,
compounded
annually, for the last five years. Required:
a. What is the effective annual interest rate (EAR) you would get
for your
investment in the first 12 years?
b. How much money do you have in your account today?
c. If you wish to have $75 000...
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