Calculate the overall rate of return of megacorp shares

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Reference no: EM133073683

QUESTION 1

An investment will take 40 semi-annual periods mature? How many years is this? Round your answer to 2 decimal places. 

QUESTION 2

Shares in Megacorp increased in value by 6.37% in 2006, 8.34% in 2007, dropped by 11.50% in 2008 and rose again by 6.23% in 2009. Calculate the overall rate of return of Megacorp shares over the 4 year time period? Round your answer to 2 decimal places.

QUESTION 3

Calculate the quarterly compounded rate (j4) equivalent to a monthly compounded rate of 8.40% (j12). Round your answer to 2 decimal places.

QUESTION 4

 How long will it take for an investment to grow from $2,000 to $4,000 if it earns 8.78% compounded quarterly? Express your answer in years rounded to 2 decimal places.

QUESTION 5

Calculate the annual effective rate equivalent to a nominal rate of 6.92% compounded quarterly. Round your answer to 2 decimal places (as a percent but don't include the % sign). 

QUESTION 6

Calculate the monthly compounded rate (j12) equivalent to a semi-annually compounded rate of 11.01% (j2). Express your answer as a percent rounded to 2 decimal places.

QUESTION 7

Rob deposited some money into an investment account. The account earned j1=6.00% in the first year, j=5.90% in the second year, and j1=7.69% in the third year. What annually compounded rate (j,) must the account earn in the fourth year so that the average annual rate of return for the entire four years is 8.10%? Express your answer as a percentage to 2 decimal places but don't include the % sign in the answer box. Express your answer to 2 decimal places. 

QUESTION 8

Sebastian's grandparents set aside $5,700 for him in a trust fund 19 years ago. Over this time, the money has grown to $16,600. 

What compound annual rate of return (jq) did the trust fund earn? Round your answer to 2 decimals.

Reference no: EM133073683

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