What is compounded annual rate implied

Assignment Help Financial Management
Reference no: EM131524820

Payday loans are very short-term loans that charge very high interest rates. You can borrow $400 today and repay $480 in two weeks. What is the compounded annual rate implied by this 20 percent rate charged for only two weeks? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Reference no: EM131524820

Questions Cloud

Determine the net present value for the project : Determine the net present value (NPV) for the project. Determine the internal rate of return (IRR) for the project.
Retirement account has current balance : How much time will it take to accumulate a total of $1,500,000 if you are adding $6,500 annually and the interest rate is 7 percent?
Enhance the force of expression of financial model : “Excel helps with a large number of visual aids to enhance the force of expression of a financial model.”
When you begin building a financial model : When you begin building a financial model, you must:
What is compounded annual rate implied : What is the compounded annual rate implied by this 20 percent rate charged for only two weeks?
What are examples of the required rate of return : What are examples of the required rate of return? Explain the difference between a joint venture and a strategic alliance.
What is the project net present value : What is the project's net present value if the required rate of return is 8.6 percent?
What is the after-tax cash flow from the salvage value : What is the after-tax cash flow from the salvage value if the tax rate is 32 percent?
Used as the initial cash flow for this building project : What amount should be used as the initial cash flow for this building project?

Reviews

Write a Review

 

Financial Management Questions & Answers

  Compute the cash cycle based

Compute the cash cycle based on the following information

  Provide a realistic assessment of expected revenues

Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple press

  Which project should the company invest in

American Steel Corporation is considering two investments.- Which project should the company invest in?- What assumptions did you make to arrive at this decision?

  BTIRR problem the property is specialty retail property

Unlevered BTIRR problem the property is a specialty retail property (which is not relevant to the solution). Mr. Beyer is planning to acquire the property, hold it for five years and then sell it at the end of the fifth year. The first year net opera..

  Maintain current centralized organization structure

Company z's managers are becoming increasingly comfortable with delegating tasks and responsibilities to subordinates in order to develop their decision making

  What must the beta of stock be

A stock has an expected return of 15.9 percent, the risk-free rate is 6.35 percent, and the market risk premium is 7.4 percent. What must the beta of this stock be?

  Assume that interest rate parity holds

Assume that interest rate parity holds. U.S. interest rate is 13% and British interest rate is 10%. The forward rate on British pounds exhibits a ____ of ____ percent.

  Treasury bill rate

Suppose the real rate is 3.5 percent and the inflation rate is 5.1 percent. What rate would you expect to see on a Treasury bill? (Round your answer to 2 decimal places. (e.g., 32.16))

  What is the periodic current yield of the bond in period

What is the periodic current yield of the bond in Period 10 (10 periods to maturity)

  What is the current value of stock-jewellery market

High Class Jewellery is a specialty company in the fine jewellery market. Based on its latest projections, the company expects to increase its annual dividend by 20 percent per year for the next two years and by 15 percent per year for the following ..

  Npv gain be divided between bondholders and stockholders

Given: the value of assets of Sam corp. will be either $2.2 B or $1.6 B in a year from now. Sam issued some time ago a zero-coupon with face value of $2B; the bond will mature a year from now. Calculate the value of Sam equity before and after the ad..

  Bank on interest rate being charged on the companys debt

As your company's chief financial officer, you are negotiating with the bank on interest rate being charged on the company's debt.

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