Top Posters
Since Sunday
g
3
3
2
J
2
p
2
m
2
h
2
s
2
r
2
d
2
l
2
a
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
emmanuel yeboah emmanuel yeboah
wrote...
Go to Answer
Posts: 3
Rep: 0 0
9 years ago
 1/Determine the future value if $5000 is invested in each of the following situations.

a. 5% for 10 years
b.7% for 7 years
c. 9% for 4 years

2/ What is the Present Value of $359000 that is to be received at the end of 23 years if the discount rate is 11%.
a. How would your answer change in part(a) if the %359000 is to be received at the end of 20years?

3/Describe how interest rate may adjust to an unanticipated increase in inflation?

4/ Assume investors expect a 2.0 percent real rate of return over the next year. If inflation is expected to be 0.5 percent, what is the expected nominal interest rate for a one year US Treasury ?

5/ Inflation is expected to be 3 percent over the next year. You desire an annual real rate of return of 2.5 percent on your investments.
a.What nominal rate of interest would have to be offered on a one year Treasury security for you to consider making an investment
b. A one year corporate debt security is being offered at 2 percentage points over the one year treasury security rate that meets your requirement . What would be the nominal interest rate on the corporate security.
a. Government debt rate
b. corporate debt rate

6/ What would be the Future Value  of $19378 invested now if the money remains deposited for 8 years , the annual interest rate is 18% and interest on the investment in compounded semi annually?
a. How would your answer change for (a) if quarterly compounding were used?
Read 3793 times
4 Replies
Replies
wrote...
#1
Staff Member
Educator
9 years ago
Quote from: emmanuel yeboah (9 years ago)
1/Determine the future value if $5000 is invested in each of the following situations.

a. 5% for 10 years
b.7% for 7 years
c. 9% for 4 years

a) A = 5000(1+0.05)^10 =8144
b) A = 5000(1+0.07)^7 = 8029
c)A=5000(1+0.09)^4 = 7057 dollars


Quote from: emmanuel yeboah (9 years ago)
2/ What is the Present Value of $359000 that is to be received at the end of 23 years if the discount rate is 11%.
a. How would your answer change in part(a) if the %359000 is to be received at the end of 20years?

Use a financial calculator or computer software program to
answer the following questions.
a. What is the present value of $359,000 that is to be received at
the end of twenty-three years, the discount rate is 11 percent,
and semiannual discounting occurs?
b. How would your answer for (a) change if monthly discounting
were used?

a) PV = $30,583.09
b) PV = $28,929.62 and here is the electronic online program that does it for you:
Mastering in Nutritional Biology
Tralalalala Slight Smile
emmanuel y. Author
wrote...
#2
9 years ago
Quote from: emmanuel yeboah (9 years ago)
1/Determine the future value if $5000 is invested in each of the following situations.

a. 5% for 10 years
b.7% for 7 years
c. 9% for 4 years

2/ What is the Present Value of $359000 that is to be received at the end of 23 years if the discount rate is 11%.
a. How would your answer change in part(a) if the %359000 is to be received at the end of 20years?

3/Describe how interest rate may adjust to an unanticipated increase in inflation?

4/ Assume investors expect a 2.0 percent real rate of return over the next year. If inflation is expected to be 0.5 percent, what is the expected nominal interest rate for a one year US Treasury ?

5/ Inflation is expected to be 3 percent over the next year. You desire an annual real rate of return of 2.5 percent on your investments.
a.What nominal rate of interest would have to be offered on a one year Treasury security for you to consider making an investment
b. A one year corporate debt security is being offered at 2 percentage points over the one year treasury security rate that meets your requirement . What would be the nominal interest rate on the corporate security.
a. Government debt rate
b. corporate debt rate

6/ What would be the Future Value  of $19378 invested now if the money remains deposited for 8 years , the annual interest rate is 18% and interest on the investment in compounded semi annually?
a. How would your answer change for (a) if quarterly compounding were used?
wrote...
#3
Staff Member
Educator
9 years ago
Only questions 1 and 2 answered.
Mastering in Nutritional Biology
Tralalalala Slight Smile
Answer accepted by topic starter
emmanuel y. Authoremmanuel y.
wrote...
#4
Posts: 3
Rep: 0 0
9 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1090 People Browsing
 116 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 181
  
 4423
  
 672
Your Opinion
Which country would you like to visit for its food?
Votes: 204
Previous poll results: Where do you get your textbooks?