Present value of the compound interest loan

Assignment Help Financial Management
Reference no: EM131985233

1. Calculate the present value of the compound interest loan. (Round your answers to the nearest cent.)

$28,000 after 6 years at 3% if the interest is compounded in the following ways.

2. Use the "rule of 72" to estimate the doubling time (in years) for the interest rate, and then calculate it exactly. (Round your answers to two decimal places.)

3% compounded annually.

"rule of 72"    yr

exact answer    yr

Reference no: EM131985233

Questions Cloud

How much is percentage increase of your purchasing power : During the year, consumer price index (CPI) increased 2%. How much is the percentage increase of your purchasing power?
How long do you have to wait to become millionaire : If you invest all your inheritance in a tax-free bond fund earning 6.4% compounded quarterly, how long do you have to wait to become a millionaire?
What will be the annual rate of return on the bond : A bond with a face value of $1,000 has 10 years until maturity, What will be the annual rate of return on the bond?
Consider corporate bond maturing : Consider a corporate bond maturing on April 14, 2025 with a. coupon rate of 5% and yield of 6%. What is the clean price of the bond on July 23, 2018?
Present value of the compound interest loan : Calculate the present value of the compound interest loan.
Find the simple interest on the loan : Find the simple interest on the loan. Find the total amount due for the simple interest loan.
What is the new yield to maturity on the bond : What is the new yield to maturity on the bond? What is your rate of return over the year?
Determine the amount due on the compound interest loan : Determine the amount due on the compound interest loan.
Explain how these three methods differ in execution : List three methods used for determining case reserves and explain how these three methods differ in execution / processing.

Reviews

Write a Review

Financial Management Questions & Answers

  Issues zero coupon bonds on the market

Atlantis Fisheries issues zero coupon bonds on the market at a price of $501 per bond. These are callable in 10 years at a call price of $560. Using semi annual compounding, what is the yield to call for these bonds?

  Relationship in portfolio expected return and portfolio beta

If you plot the relationship between portfolio expected return and portfolio beta, what is the slope of the line that results?

  Expect to have a more pronounced movement in its value

Let's assume that the market interest rates rise by 2%. Which bond would you have expect to have a more pronounced movement in its value and why?

  What are the draw backs and benefits in such an arrangement

What are the draw backs and benefits in such an arrangement?

  All rates should be calculated to 3 decimal places in eg

all rates should be calculated to 3 decimal places in e.g. 1.234 the discount factors to 5 decimal places e.g. 0.98765

  Calculate anticipated profits-position in three contracts

The September 2013 Mexican peso futures contract has a price of $0.07713 per MXN. You believe the spot price in September will be $0.08365 per MXN. The contract size of one MXN contract is MXN500,000. (1) What speculative position would you enter int..

  How were capital flows between countries likely to be affect

Given the expectations for a decline in US interest rates and share prices, how were capital flows between the United States and other countries likely to be affected?

  How much should you be willing to pay for bond

Bond X is noncallable and has 20 years to maturity, a 8% annual coupon, how much should you be willing to pay for Bond X today?

  Vehicles expected life of three years as delivery vehicle

You are trying to pick the least-expensive car for your new delivery service. You have two choices: the Scion xA, which will cost $21,500 to purchase and which will have OCF of –$2,700 annually throughout the vehicle’s expected life of three years as..

  What is the bonds coupon rate

Suppose a 5 year $1,000 bond with annual coupons has a price of $896.42 and a yield to maturity of 5.5%. What is the bonds coupon rate? Please show how you got your answer

  Describe how financial ratio analysis

Describe how financial ratio analysis should be conducted. Please provide references where necessary.

  What is percentage return from her strategy

If the spot rate of the euro in one year is $1.12, what is Joan's percentage return from her strategy?

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