Finance help
ez_mqtnz
what_is_the_future_value.docWhat 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 |
|
Compute the future value of $1,000 compounded annually for 20 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
|
Future value |
$ |
|
b. |
Compute the future value of $1,000 compounded annually for 15 years at 9 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
|
Future value |
$ |
|
c. |
Compute the future value of $1,000 compounded annually for 25 years at 6 percent. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
|
Future value |
$ |
|
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 |
|
|
|
28 |
|
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.) |
|
Present value |
$ |
|
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.) |
|
Present value |
$ |
|
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.) |
|
Present value |
$ |
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. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
|
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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
|
Average real return |
% |
|
b. |
What was the average nominal risk premium on the stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 1 decimal place, e.g., 32.1.) |
|
Average nominal risk premium |
% |
