Question
In: Finance
6. (Basic time period) If you can earn interest at an annual interest rate of 9%,...
6. (Basic time period) If you can earn interest at an annual interest rate of 9%, how long will it take for $25,000 to grow to be: Using Excel
a. $30,000?
b. $40,000?
c. $75,000?
d. $100,000?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You can choose between Machine A or B. Your annual interest rate is 9%. You need...
You can choose between Machine A or B. Your annual interest rate
is 9%. You need a Machine for 6 years (required service
period).
Machine A costs $42,000 and lasts for 2 years. It has no salvage
value, and costs an additional $15,000 each year to operate.
Machine B costs $90,500 and lasts for 3 years. It has a salvage
value of $20,000 and costs $8,000/year to operate.
What is the Annual Cost of the lowest cost machine?
Consider a 2-period binomial model. the annual interest rate is 9%. the initial stock price is...
Consider a 2-period binomial model. the annual interest rate is
9%. the initial stock price is $50. In each period the stock price
either goes up by 15% or down by 10%.
a. Price a European call option on the stock with exercise price
$60
b. Price a European put option on the stock with exercise price
$60
4. What annual interest rate would you need to earn if you wanted a $200 per...
4.
What annual interest rate would you need to earn if you wanted a
$200 per month contribution to grow to $14,700 in five
years?
5.
You wish to buy a $20,000 car. The dealer offers you a 5-year
loan with an 8 percent APR. What are the monthly payments?
6.
Joey realizes that he has charged too much on his credit card
and has racked up $3,000 in debt. If he can pay $150 each month and
the card...
You have obtained a mortgage for $100,000 with annual interest rate of 6% that is to...
You have obtained a mortgage for $100,000 with annual interest
rate of 6% that is to be paid over 30 years (interest is compounded
monthly). Your monthly payment is $600.
Complete the first few rows of the loan amortization table (show
how you got the number):
Months
Loan balance
Loan payment
Interest
Principal
1
2
3
Use the following information: Annual interest rate Euros = 1.2% Annual interest rate Pesos = 6%...
Use the following information:
Annual interest rate Euros = 1.2%
Annual interest rate Pesos = 6%
Spot July 2, 2018 = 23.5 MXN / Euro
Expected Exchange Rate in the 4-month market = 22.3 MXN / Euro
What type of exchange would avoid arbitrage overdraft within 4 months?
Use two decimals in your answer. (round to two decimal places)
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
A.) Suppose that today you buy a bond with an annual coupon rate
of 7 percent for $1,060. The bond has 21 years to maturity. What
rate of return do you expect to earn on your investment? Assume a
par value...
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
a.
Suppose that today you buy an annual coupon bond with a coupon
rate of 8.4 percent for $775. The bond has 7 years to maturity and
a par value of $1,000. What rate of return do you expect to earn...
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
a. Suppose that today you buy a bond with an annual coupon rate
of 8 percent for $1,170. The bond has 16 years to maturity. What
rate of return do you expect to earn on your investment? Assume a
par value...
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
a.
Suppose that today you buy an annual coupon bond with a coupon
rate of 8.1 percent for $855. The bond has 7 years to maturity and
a par value of $1,000. What rate of return do you expect to earn...
The YTM on a bond is the interest rate you earn on your investment if interest...
The YTM on a bond is the interest rate you earn on your
investment if interest rates don’t change. If you actually sell the
bond before it matures, your realized return is known as the
holding period yield (HPY).
a.
Suppose that today you buy a bond with an annual coupon rate of
10 percent for $1,190. The bond has 18 years to maturity. What rate
of return do you expect to earn on your investment? Assume a par
value...
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