Computation of pv fv simple and effective interest rate1

Assignment Help Corporate Finance
Reference no: EM13356975

Computation of PV, FV, Simple and effective interest rate.

1. Find the effective rate corresponding to 3% compounded quarterly.

2. What is the ending balance from an initial deposit of $5,000 at 14% compounded monthly for 4 years?

3. Find the amount of interest earned on a deposit of $1,609.25 at 13% compounded monthly for 90 months.

4. Find the present value of $10,425 in 39 months at 13.75% compounded monthly.

5. Find the value of an annuity where $275 is deposited at the end of each quarter for 3 years and the interest rate is 9.5% compounded quarterly.

6. Find the simple interest on $24,281 at 12 3/4% (per annum) from June 8 of one year to February 14 of the next year.

7. Determine the amount of each payment to be made to a sinking fund with 10 annual payments compounded at 14% annually, in order that enough money will be available to pay off a loan of $5,000.

Reference no: EM13356975

Questions Cloud

Analyzing the positive and negative aspects of financial : analyzing the positive and negative aspects of financial statement.based on the information in the original case and in
Theory question based on budgeting for financial planningif : theory question based on budgeting for financial planning.if budget performance is overemphasized myopic behavior can
Journals related to bondshigher corporation owned 51 of the : journals related to bonds.higher corporation owned 51 of the voting common stock of manato inc. the parents interest
Journal entries related to bondshigher corporation owned 51 : journal entries related to bonds.higher corporation owned 51 of the voting common stock of manato inc. the parents
Computation of pv fv simple and effective interest rate1 : computation of pv fv simple and effective interest rate.1. find the effective rate corresponding to 3 compounded
Computation of ytm and present value of bondsyield to : computation of ytm and present value of bonds.yield to maturity- heymann company bonds have 4 years left to maturity.
Computation of default risk premiumdefault risk premium- : computation of default risk premium.default risk premium- the real risk-free rate r is 2.5 percent. inflation is
Analysis on whether to go for investment in fixed assets or : analysis on whether to go for investment in fixed assets or borrow funds.1. if a company in making money from
Multiple choice questions on market price and stocks1nbsp : multiple choice questions on market price and stocks.1.nbsp makeover inc. believes that at its current stock price of

Reviews

Write a Review

Corporate Finance Questions & Answers

  Find the break even quantity

Two different production procedure is being considered for making a new product. The 1st procedure is less capital intensive, with fixed costs of only $50,000 per year and variable costs of dollar 7,000 per unit. Find the break even quantity

  Computation of return on stock using capm approach1nbspparr

computation of return on stock using capm approach.1.nbspparr papers stock has a beta of 1.40 and its required return

  Multiple choice questions on investments in stock market

A stock portfolio is similarly allocated among Stock A, B, & C. Stocks A, B, & C have betas of 1.9, 1, and 0.57, respectively. The market has just risen 4 percent.

  Calculate the total value of all shares

Calculate the total value of all shares outstanding currently and what fraction of the total value outstanding does each stock make up?

  Importance of maturity matching

Give some example that underscores importance of maturity matching and its importance to sound financial money management and also explain its merits.

  Calculate the current earnings per share

Calculate the current earnings per share (EPS) and calculate the current gearing (non-current debt/equity, using book value).

  What costs are relevant to decision making

What costs are relevant to decision making? How do managers overcome the natural tendency to consider historical and sunk costs when evaluating business alternatives?

  What is nealons cost of equity capital

Calculate the firms weighted average cost of capital and what is Nealons cost of equity capital when new shares are sold, and what is the weighted average cost of the added funds involved in the issuance of new shares?

  Calculate the aimed profit percentages

Calculate the aimed profit percentages for the three products and under the full absorption costing method, with overhead costs absorbed on the basis of direct labour hours.

  Estimate the companys beta and required return on equity

Estimate the company's beta and required return on equity using the CAPM. Finally estimate the firm overall cost of capital - This is used by KMV to calculate likelihood of default for publicly listed company. I would like to use Disney if possible.

  Find the price of stock

Piedmont Enterprises currently pays a dividend of $1 per share. This dividend is expected to grow at a 20% per year for the next two years, after which it is expected to grow at 6% per year for the foreseeable future.

  Describe the limitations of financial ratio analysis

Recent Financial Statement Report of the corporation, How liquid is the firm and are the firm's managers generating adequate operating profits on the company's assets?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd