Finance Help
Biowizard90
finance_help.docx1.) You are scheduled to receive $15,500 in three years. When you receive it, you will invest it for seven more years at 7.2 percent per year. How much will you have in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)
Future Value:
|
a. |
Based on the $23,099 price, what rate was RBMCC paying to borrow money? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
|
Rate of Return% =
|
b. |
Suppose that, on March 28, 2018, this securityAf?cA????1A????1s price is $41,380. If an investor had purchased it for $23,099 at the offering and sold it on this day, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Annual rate of return % =
|
c. |
If an investor had purchased the security at market on March 28, 2018, and held it until it matured, what annual rate of return would she have earned? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
Annual rate of return %=
|
3.) At 6.90 percent interest, how long does it take to double your money? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Length of time _____ years
|
At 6.90 percent interest, how long does it take to quadruple it? (Round your answer to 2 decimal places. (e.g., 32.16)) |
Length of time ______ years
|
4.) 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 $65,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Difference in accounts $ ______ |
1.)
You are scheduled to receive $15,500 in three years. When you re
ceive it, you will invest
it for seven more years at 7.2 percent per year. How much will you have in ten
years?
(Do
not
round
intermediate
calculations
and
round
your
final
answer
to
2
decimal
places.
(e.g.,
32.16)
Future
Value:
2.)
Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor,
offered some securities for sale to the public on March 28, 2008. Under the terms of the
deal, RBMCC promised to repay the owner of one of these securities $100,000 on Marc
h
28, 2039, but investors would receive nothing until then. Investors paid RBMCC $23,099
for each of these securities; so they gave up $23,099 on March 28, 2008, for the promise
of a $100,000 payment 31 years later.
a.
Based on the $23,099 price, what rate was RBMCC paying to borrow money?
(Do
not
round
intermediate
calculations
and
round
your
final
answer
to
2
decimal
places.
(e.g.,
32.16))
Rate
of
Return%
=
b.
Suppose that, on March 28, 2018, this securityAf?cA????1A????1s price is $41,380. If an
investor had purchased it for $23,099 at the offering and sold it on this day, what annual rate
of return would she have earned?
(Do
not
round
intermediate
calculations
and
round
your
final
answer
to
2
decimal
places.
(e.g.,
32.16))
Annual
rate
of
return
%
=
c.
If an investor had purchased the security at market on March 28, 2018, and held it until it
matured, what annual rate of return would she have earned?
(Do
not
round
intermediate
calculations
and
round
your
final
answer
to
2
decimal
places.
(e.g.,
32.16))
Annual
rate
of
return
%=
3.)
At 6.90 percent interest, how long does it take to double your money?
(Round
your
answer
to
2
decimal
places.
(e.g.,
32.16))
Length
of
time
_____
years
At 6.90 percent interest, how long does it take to quadruple it?
(Round
your
answer
to
2
1.) You are scheduled to receive $15,500 in three years. When you receive it, you will invest
it for seven more years at 7.2 percent per year. How much will you have in ten
years? (Do not round intermediate calculations and round your final answer to 2
decimal places. (e.g., 32.16)
Future Value:
2.) Rust Bucket Motor Credit Corporation (RBMCC), a subsidiary of Rust Bucket Motor,
offered some securities for sale to the public on March 28, 2008. Under the terms of the
deal, RBMCC promised to repay the owner of one of these securities $100,000 on March
28, 2039, but investors would receive nothing until then. Investors paid RBMCC $23,099
for each of these securities; so they gave up $23,099 on March 28, 2008, for the promise
of a $100,000 payment 31 years later.
a.
Based on the $23,099 price, what rate was RBMCC paying to borrow money? (Do not round
intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Rate of Return% =
b.
Suppose that, on March 28, 2018, this securityAf?cA????1A????1s price is $41,380. If an
investor had purchased it for $23,099 at the offering and sold it on this day, what annual rate
of return would she have earned? (Do not round intermediate calculations and round
your final answer to 2 decimal places. (e.g., 32.16))
Annual rate of return % =
c.
If an investor had purchased the security at market on March 28, 2018, and held it until it
matured, what annual rate of return would she have earned? (Do not round intermediate
calculations and round your final answer to 2 decimal places. (e.g., 32.16))
Annual rate of return %=
3.) At 6.90 percent interest, how long does it take to double your money? (Round your
answer to 2 decimal places. (e.g., 32.16))
Length of time _____ years
At 6.90 percent interest, how long does it take to quadruple it? (Round your answer to 2
