At i = 18%, what is the annual-equivalence amount for the infinite series shown next? 5 Click the icon to view the interest factors for discrete compounding when i= 18% per year. The annual-equivalence amount is $ (Round to the nearest dollar.) $2,400 $5,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Years ***

At i = 18%, what is the annual-equivalence amount for the infinite series shown next? 5 Click the icon to view the interest factors for discrete compounding when i= 18% per year. The annual-equivalence amount is $ (Round to the nearest dollar.) $2,400 $5,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Years ***

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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At what interest rate will th given principal P earn the given simple interest lin the given term f? 11. P = P175, 000; = 6,500 1 = 5- years 12. P = P50, 000; | = P2, 0; t = 8 mos. 13. P = P180, 000; = P3, 500; 1 = 15 mos. 14. P = P320, 000; | = P7, 000; = 18 mos. 15. P = P2, 050, 00; = P5, 400; † = 2.8 years
a) What is the present value of the following payment series when the interest rate is 3% YR1 = $200YR2 = $100YR3 = $370YR4 = $370YR5 = $370YR6 = $-300 b) Convert the above payment series to a uniform payment series over 5 years, starting at year 1. c) Convert the payment series in question 6 to a uniform payment series over 3 years starting at year 3.
For each of the following situations involving single amounts, solve for the unknown (?). Assume that interest is compounded annually. (i = interest rate, and n = number of years) Present Value Future Value i n1. ? $ 40,000 10% 52. $ 36,289 65,000 ? 103. 15,884 40,000 8 ?4. 46,651 100,000 ? 85. 15,376 ? 7 20
If i= 14.8% per year, compounded monthly What is the effective interest rate per semiannual? (ABET, SO1) Select one: O a. 15.85% O b. 7.63% O c 74% O d. 1.23% O e. 7.91%
Assume that l2t =0.25% and that l1t = O. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then i1 is equal to: O A.6% O B. 5.75% O C. 5.50% O D. 5.25%
Assume that l2t = 0.30% and that it = 0. If the one-year interest rate is 5% and the two-year interest rate is 5.75%, then it+1 equal to: is OA. 6.05% O B. 5.90% O C. 5.30% O D. 5.45%
0.1 x (0.8) fort = 1, 2, Problem 5. The spot rate of interest is defined by st 3, 4, 5. Find the present value of a 5-year annuity-due in which the first payment is equal to $1000, and each subsequent payment increases by 6% of the immediately preceding payment.
12. Complete the following using compound future value. (Use the Table 12.1 provided.) Note:Round your answers to the nearest cent. Time Principal Rate Compounded Amount Interest 12 years $15,000 3 1/2% Annually Future value interest factor of $1 per period at i% for n periods, FVIF(i,n). Period 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 1 1.0050 1.0100 1.0150 1.0200 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500 1.0550 1.0600 1.0650 1.0700 1.0750 1.0800 1.0850 1.0900 1.0950 1.1000 2 1.0100 1.0201 1.0302 1.0404 1.0506 1.0609 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 1.1556 1.1664 1.1772 1.1881 1.1990 1.2100 3 1.0151 1.0303 1.0457 1.0612 1.0769 1.0927 1.1087 1.1249 1.1412 1.1576 1.1742 1.1910 1.2079 1.2250 1.2423 1.25.97 1.2773 1.2950 1.3129 1.3310 4 1.0202 1.0406 1.0614 1.0824 1.1038 1.1255 1.1475 1.1699 1.1925 1.2155 1.2388 1.2625 1.2865 1.3108 1.3355 1.3605 1.3859 1.4116 1.4377 1.4641 5…
Problem 8. What is the equivalent worth in year 5 of the following series of income and disbursements, if the interest rate is 10% per year? Year Income, S 0 0 1-5 6000 6-8 6000 9-14 8000 Answer: Equation: CFD: Expense, S 9000 6000 3000 5000
Using Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Principal TimePeriod (years) NominalRate (%) InterestCompounded CompoundAmount CompoundInterest $8,000 4 12 annually $ ?? $ ??
Calculate the simple interest rate. (Round your answer to one decimal place.) P = $4300, I = $660, t = 1 year
Use the continuous compound interest formula to find the indicated value. A= $16,687; P=$10,400; t= 60 months; r= ?

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