Simple interest at an annual rate

Assignment Help Finance Basics
Reference no: EM132538443

A discounted note that pays $24500 in 6 months sells for X. Find X in each of the following interest rate scenarios:

a) simple interest at an annual rate of 9%

b) simple discount at an annual rate of 9%

c) compound interest at a nominal rate of 9% compounded semi-annually

d) compound interest at a nominal rate of 9% compounded monthly

e) Are any of your answers to the above exactly the same? If so, can you explain why?

Reference no: EM132538443

Questions Cloud

What is jefferson cleaning? service net income or net? loss : What is Jefferson Cleaning? Service's net income or net? loss? Consider the overall effects on Jefferson Cleaning Service from selling and performing
How the nursing profession is viewed by the general public : Describe how the nursing profession is viewed by the general public. Discuss factors that influence the public's perception of nursing? Describe ways to.
What is the present value today of the future payment : Suppose that receive a payment of $80,000 in three years. If interest rates are 2%, then what is the present value today of the future payment?
Innovation contribute to sales growth of apple : Research on questions like how does innovation contribute to sales growth of apple - What types of innovation contribute to sales growth of apple
Simple interest at an annual rate : A discounted note that pays $24500 in 6 months sells for X. Find X in each of the following interest rate scenarios:
Understanding the political and legal environment : Understanding the cultural environment. Understanding the political and legal environment.
Demonstrate what is the npv of the project : The project ends after 20 years. WINKA Corp cost of capital is 12.5%. Its corporate tax rate is 21%. The risk-free rate is 3%. What is the NPV of this project?
Make reference to the revenue recognition criteria : Provide reasons - make reference to the revenue recognition criteria we discussed in class. If disagree, determine the amount of revenue
Examine importance of professional associations in nursing : Examine the importance of professional associations in nursing. Choose a professional nursing organization that relates to your specialty area (psychiatric).

Reviews

Write a Review

Finance Basics Questions & Answers

  What level of sales could mitchell have obtained

What level of sales could Mitchell have obtained if it had been operating at full capacity? Round your answer to the nearest dollar.

  Relationship between the inflation rates

What responsibilities did that impose on the US? What were the risks to other nations? Explain the relationship between the inflation rates in two countries and their exchange rates.

  What are the implied forward rates

The yields on 1-year, 2-year and 3-year, risk-free, zero-coupon bonds are 2%, 2.5% and 3%, respectively.

  What is the fair price for the call option

A European call option on an MQU share will expire at the end of one month. What is the fair price (or premium) for the call option? Why

  Calculate the npv of the given project

RightPrice Investors, Inc., is considering the purchase of a $379,000 computer with an economic life of four years. The computer will be fully depreciated over.

  Find the total cost of producing 101 items

The cost function of a certain commodity is C(x) = 78 + .16x − .0006x 2 + .000003x 3. (a) Find C ′ (100). (What does this mean?)  (b) Find the total cost of producing 101 items.

  Foreign exchange and investment decisions

There has been huge growth in foreign exchange investment of average investors, for example, stay at home or working from home moms. Describe 3 to 5 major factors which require to be considered in making foreign exchange (currency) investment deci..

  Request insurance coverage or pursue cheapest policy

Describe your own behavior when purchasing health or disability insurance. Do you request specific insurance coverage or pursue the cheapest possible policy?

  Calculate the npv of the project if the project

Calculate the NPV of the project if the project will cost $40 million of initial investment?

  What is the after-tax cost of capital to zephyr for bonds

(Cost of preferred stock) The preferred stock of LLC International sells for $35 and pays 5 percent dividends. The net price of the stock is $30.

  Determine if there have been any recent

Determine if there have been any recent (past 10 years) attempts by these firms to merge.What was the outcome?

  Iron ore pellets from minnesota

Arcelor Mittal Dofasco can buy iron ore pellets from Minnesota at US$130 per short ton (2000 pounds) or from Labrador at C$175 per metric tonne (1000 kg).

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