Determining the annual rate

Assignment Help Finance Basics
Reference no: EM1328444

1. Find the compound amount if $6,400 is invested for 2 years at 12% compounded monthly. What difference would compounding daily make in this example?

2. Deposits of $1,000, $1,100 and $680 were made into a savings account, the first two years ago, the second 18 months ago, the third 6 months ago. How much is in the account now if the interest on all deposits is 12% compounded semi-annually?

3. A deposit of $2,000 earns interest at a rate of 14% compounded quarterly. After two and a half years the interest rate changes to 13.5% compounded monthly. How much is in the account after six years?

4. Which is a better rate of interest, 16% compounded quarterly or 16 1/4% compounded semi-annually?

5. Billy Burnett's grandfather willed Billy $10,000 payable on his twenty-first birthday. What will be the value of the bequest when Billy reaches 17 years of age if money is worth 8% compounded semi-annually?

6. Suppose you had three different offers for your used car. One person will give you $1,000 right now, another offers $1,200 six months from now and the other offers $1,600 two years from now. If interest is 16% compounded quarterly, which offer is worth the most.

7. At 16% compounded quarterly, how long would it take for money to triple?

8. At what annual nominal rate of interest will $6,900 earn $6,400 interest in five years?

9. You want to have $1,000,000 in your bank account when you turn 65 years old. Today is your 20th birthday. As a birthday present you received $27,000 and you want to invest this amount. At what annual interest rate must you achieve to realize this goal?

Reference no: EM1328444

Questions Cloud

Operations management and supply chain : Operations Management - Supply Chain - How can the members of the chain be convinced to allow the chain to be managed by one organization?
Why server side computing has been a more affordable : The Cloud, that is synonymous with the internet, became a common phrase which infers that everybody can keep files and records in a trusted site. So what is the difference between uploading a file to a file server and uploading a file to a cloud.
A stereotype that was not accurate : Sometimes an employee or co-worker surprises others at work through his/her expressed abilities that go beyond what is expected based
Compute the companies concentration measure : Compute the companies concentration measure. Explain how would it change if Delta merged with United States.
Determining the annual rate : Find out the compound amount if $6,400 is invested for 2 years at 12% compounded monthly. What difference would compounding daily make in this example?
Explain the integrated marketing communication : Explain the Integrated marketing communication and e-business technology and how does it fit into the technology of e-Business
Who manages a supply chain : Who manages a supply chain - How can the members of the chain be convinced to allow the chain to be managed by one organization?
Charismatic and transformational leadership across cultures : Do charismatic and transformational leadership generalize across cultures?
What is missing, incomplete, inaccurate : Email clients have to enable SSL encryption both for POP and SMTP. That way regardless of where we work, our email traffic would not expose any data to network eavesdropping techniques.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Objective type questions on decision on investments

Objective type questions on decision on investments, inventory and risk management and Common stockholders are most concerned with

  Computation of net present value

Computation of net present value and what is the NPV of this investment

  Explain decision making on the basis of the net present

Explain decision making on the basis of the net present value criterion and profitability index of a project with a net investment of $20,000

  Calculation of standard deviation

Calculation of Standard Deviation and which of these two properties is perceived to be riskier by the market

  Explain accounts receivables

Explain Accounts receivables and What is the level of accounts receivable needed to support this sales expansion

  Retirement plans

How much will Jane have in her retirement account immediately after she makes her last contribution in Year 40, assuming a return on her investments of 9%?

  Performing the tvm concepts

(Annualizing a monthly rate) You credit card statement says which you will be charged 1.05% interest a month on unpaid balances. What is the Effective Annual Rate (EAR) being charged?

  Computing present value of future cash flow

Find out the present value of following future amounts? $800 to be received 10 years from now discounted back to the present at 10 percent

  Computation of yield from investment

Computation of yield from investment thus it is therefore well known that profits may be slim nowadays

  Calculation of projected cash flows and net present value

Calculation of projected Cash flows and Net Present Value and Compute the necessary calculations and How does this information affect your recommendation

  Computation of unit cost using activity-based costing

Computation of unit cost using activity-based costing and Determine the unit cost for each of the two products using activity-based costing

  Compute of value of the stock

Compute of value of the stock and What would be the value of the stock if the dividend payout ratio

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