Reference no: EM131107314
What is the future value of $2,944 invested for 9 years at 6.00 percent compounded annually?
One year ago, you invested $3,140. Today it is worth $3,700.50. What rate of interest did you earn?
Some time ago, Julie purchased eleven acres of land costing $15,190. Today, that land is valued at $59,547. How long has she owned this land if the price of the land has been increasing at 5 percent per year?
First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually.
If you made a $61,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years
a. Compute the future value of $1,000 compounded annually for 20 years at 6 percent.
b. Compute the future value of $1,000 compounded annually for 15 years at 9 percent.
c. Compute the future value of $1,000 compounded annually for 25 years at 6 percent.
For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):
|
Present Value
|
Years
|
Interest Rate
|
Future value
|
|
|
12
|
6
|
15,951
|
|
|
3
|
12
|
56,557
|
|
|
13
|
891,073
|
|
30
|
10
|
555,164
|
Wilkinson Co. has identified an investment project with the following cash flows:
|
Year
|
Cash Flow
|
|
1
|
$ 750
|
|
2
|
990
|
|
3
|
1,250
|
|
4
|
1,350
|
If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
If the discount rate is 18 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
If the discount rate is 24 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Four months ago, you purchased 1,400 shares of Lakeside Bank stock for $25.44 a share. You have received dividend payments equal to $.58 a share. Today, you sold all of your shares for $26.44 a share. What is your total dollar return on this investment?
Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $66.
Compute the percentage total return.
You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 18 percent, -14 percent, 20 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 3.1 percent, and the average T-bill rate over the period was 4.4 percent.
a. What was the average real return on the stock?
b. What was the average nominal risk premium on the stock?