Calculate nominal interest rate, Taxation

You have been offered a unique investment opportunity today; you will receive $500 one year from now. If you invest $10,000 today, you will receive $500 one year from now, $1500 two years from now, and $10,000 ten years from now?

a) What is the NPV of the opportunity if the interest rate is 6%?  Should you take the opportunity?

b) What is the NPV of the opportunity if the interest rate is 2% per year? Should you take it now?

What is the present value of $1000 paid at the end of each of the next 100 years if the interest rate is 7% per year?

You have found there investment choices for a one- year deposit: 10% APR compounded monthly, 10% APR compounded annually, and 9% APR compounded daily. Compare the EAR for each for each investment choice. (Assume that there are 365 days in the year.)

Oppenheimer Bank is offering a 30-year mortgage with an EAR of 53/8% .If you plan to borrow $150,000, what will your monthly payment be?

If the rate of inflation is 5%, what nominal interest rate is necessary for you to earn a 3% real interest rate on your investment?

Your best taxable investment opportunity has an EAR of 4%. Your best tax-free investment opportunity has an EAR of 3%.  If your tax rate is 30%, which opportunity provides the higher after-tax interest rate?

Posted Date: 3/4/2013 7:49:43 AM | Location : United States







Related Discussions:- Calculate nominal interest rate, Assignment Help, Ask Question on Calculate nominal interest rate, Get Answer, Expert's Help, Calculate nominal interest rate Discussions

Write discussion on Calculate nominal interest rate
Your posts are moderated
Related Questions
For purposes of this problem, ignore the possibility that there might be a disguised sale, assume that DEF uses the traditional method for making § 704(c) allocations, and finally

How much is for the Roberta Santos taxation assignment?

Assume that a large copy machine is being purchased by your employer. the cost is 200.000$. the manufacturer claims it has a useful life of 8 years. this machine will lower operati

Hi Dear, Could you please do the online exam for ( Tax Individuals US). The exam will be ( short answers and MC ). The exam will open about one and half to two hours. The exam wil

Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju

Assignments for Portfolio Development In order to demonstrate college-level mastery of the course objectives, you will be required to write a narrative for your electronic port

Ben Grimm is a 40% partner in We Four, LLC a super-heroing organization. (He does most of the heavy lifting. Reed has 40%, he is the brains. Sue has 10%--they never see her doin


Mann Limited purchased machinery  on 1 January 20.9, on which date it was estimated to have a useful life of 5 years and a nil residual value. The carrying amount on 31 December 20

Price for 2000 words