Calculating rates of return

Assignment Help Financial Management
Reference no: EM13848266

Calculating Rates of Return

Suppose an investment offers to quadruple your money in 18 months (don’t believe it). What rate of return per quarter are you being offered? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Rate of return   %

Reference no: EM13848266

Questions Cloud

What is the current value of the annuity : A 6-year annuity of twelve $10,200 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 8 percent compounded monthly, what is the value of this annuity five years from now? If the ..
How does american explain the taking of native american land : How does American explain the taking of Native American land or does it and what does continued disrespect say about how Native Americans are valued in U.S. society
Calculating perpetuity values : The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $20,000 per year forever. Suppose a sales associate told you the policy costs $465,000. At what interest rate would this be a fair deal?
What are the possible ramifications for patients : This case presents a very negative mindset harbored by at least some employees at Oakridge University Hospital. What are the possible ramifications for patients at Oakridge University Hospital or any other facility who encounter employees possessi..
Calculating rates of return : Suppose an investment offers to quadruple your money in 18 months (don’t believe it). What rate of return per quarter are you being offered?
Calculating the number of payments : You’re prepared to make monthly payments of $200, beginning at the end of this month, into an account that pays 6.1 percent interest compounded monthly. How many payments will you have made when your account balance reaches $11,000?
Calculating present values : You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $510,000 per year. Thus, in one year, you receive $1.51 million. In two years you get $2.02 million, and so on. If the appropriate intere..
Calculating loan payments : You want to buy a new sports coupe for $74,500, and the finance office at the dealership has quoted you an APR of 5.6 percent for a 48 month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?
Calculating annuity future values : You are planning to make annual deposits of $6,330 into a retirement account that pays 10 percent interest compounded monthly. How large will your account balance be in 28 years?

Reviews

Write a Review

Financial Management Questions & Answers

  Cost of carrying silver includes storage costs

Assume that the cost of carrying silver includes storage costs. On March 17, 2015 the May 2015 futures contract settled at $ 15.578 per ounce (assume it is a 2-month contract), spot traded at $ 15.562 per ounce. Storage costs per ounce are about 0.2%..

  What is the projects annual operating cash flow

Spear's project is expected to generate net annual sales revenue of $6,000,000 at the end of each of the next four years. The new equipment costs a total amount of $4,000,000. Total operating osts are expected to equal $4,000,000. Suppose the firm us..

  Do you think the yield curve will change during this time

How do you think the yield curve will change during this time? Offer some logic or current reference(s) to support your answers.

  What is the yield to maturity of a bond that sells

What is the yield to maturity of a bond that sells for $1,045 today and pays $30 every six months and matures in 12 years if bonds issued today are paying $40.00 annually?

  What is the price of the bond-until maturity

A bond has a coupon rate of 12 percent and 14 years until maturity. If the yield to maturity is 9.3 percent, what is the price of the bond?

  Our normal actuarial notation

To accumulate $18,000 at the end of 7n years, a deposit of $5,000 is made at the end of the first 3n years and another deposit of %7,200 is made at the end of 5n years. Find where v is taken from our normal actuarial notation and v > 0.

  Measure the cost of the common stock

When measuring the cost of capital, many companies measure the cost of the common stock in the company. However, does common stock have a cost when there is no obligation to pay the stockholders except upon liquidation of the company?

  Best guess as to the value of the bond

You buy an 11 percent, 30-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of similar risk are up to 13 percent. What is your one best guess as to the value of the bond?

  Develop and describe a strategic measurement

develop and describe a strategic measurement ldquoscorecardrdquo that might be incorporated with the financial measures

  Assume that you have been asked to place a value on the

assume that you have been asked to place a value on the fund capital equity of besthealth a not-for-profit hmo. its

  Expected return and standard deviation of variance portfolio

The stock of Bruin, Inc., has an expected return of 14 percent and a standard deviation of 42 percent. The stock of Wildcat Co. has an expected return of 12 percent and a standard deviation of 57 percent. calculate the expected return and standard de..

  Planning to make monthly deposits

You are planning to make monthly deposits of $110 into a retirement account that pays 11 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 23 years?

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