Calculate how much you will earn in simple interest

Assignment Help Financial Management
Reference no: EM131625222

You choose to invest $400 in a project that pays a return of 12 percent per year. This project has a 7 year time horizon and interest is compounded quaterly. Calculate how much you will earn in simple interest.

(Hint: this excludes the amount you earn from interest compounding as well as the value of your original investment)

Reference no: EM131625222

Questions Cloud

Calculate the addition to retained earnings expected : Calculate the addition to retained earnings expected in 2016.
Contribution to society of the foreign exchange market : contribution to society of the foreign exchange market
Forward rate given above using the pure expectations theory : What is the other spot rate you need to know to find the forward rate given above using the pure expectations theory?
What interest payments do bondholders receive each year : What interest payments do bondholders receive each year? At what price does the bond sell?
Calculate how much you will earn in simple interest : This project has a 7 year time horizon and interest is compounded quaterly. Calculate how much you will earn in simple interest.
What is the bond yield to maturity if bond is selling : A 20-year maturity bond with face value of $1,000 makes annual coupon payments. What is the bond’s yield to maturity if the bond is selling for $1,040?
What is new yield to maturity on the bond : What is the new yield to maturity on the bond? What is your rate of return over the year?
Difference between a debt security and an equity security : What is the difference between a debt security and an equity security?
Compute the stock earnings per share : Compute the stock's earnings per share (EPS). What's the stock's P/E ratio?

Reviews

Write a Review

Financial Management Questions & Answers

  Investment return-what was your percent return

Investment Return MedTech Corp stock was $51.80 per share at the end of last year. Since then, it paid a $1.30 per share dividend. The stock price is currently $63.35. If you owned 300 shares of MedTech, what was your percent return?

  The additional profit contribution from additional sales

Initiating a cash discount; a company is considering offering a 1% discount for payment within 15 days, the current average collection period is 60 days. Sales are 40,000 units and the selling price is $42 per unit. Variable cost per unit is $31. The..

  European call options on silver futures

What is the delta of a short position in 1000 european call options on silver futures?

  What is the estimated value of preferred stock

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 10% of its $100 par value. Preferred stock of this type currently yields 7%. Assume dividends are paid annually. What is the estimated value of Rolen's preferred ..

  About the effective yield

Effective Yield. Fort Collins, Inc., has $1 million in cash available for 30 days. It can earn 1% on a 30 day investment in the U.S. Alternatively, if it converts the dollars to Mexican pesos, it can earn 1 1/2% on a Mexican deposit. The spot rate of..

  What will the firm savings be from using the lockbox

Assume that there are 270 business days in a year and the opportunity cost of funds is 5 percent. what will the firm's savings be from using the lockbox

  What is the rate of return for the long position

Futures Daily Settlement. Consider the following sequence of prices for a currency futures contract. Each contact involves 10,000 units of the foreign currency. The initial and maintenance margin requirements are USD 800 and USD 500 respectively. Wha..

  What is the firm balance of current assets

What is the firm's balance of current assets?

  Bonds are noncallable-what is the price of the bonds

If the bonds are noncallable, what is the price of the bonds today? Assume a par value of $1,000 and semiannual payments.

  Firms income tax liability and its after-tax income

What are the firm's income tax liability and its after-tax income?

  Deducted by the issuer for tax purposes

This follows because preferred stock dividends are treated as fixed charges, and as such they can be deducted by the issuer for tax purposes.

  Convertible debenture valuation

What is the minimum price at which the Orillia Real Estate Development Corp. convertible debentures should sell?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd