The bank was using an interest rate

Assignment Help Financial Management
Reference no: EM131575301

In 2014, a man mailed a exist 500 check to another man to repay a exist 500 debt of his great great grandfather. who died in 1879. A bank estimated the in test on the loan to be exist269 million for the 135 years it was due. Find the interest rate the bank was using assuming interest is compounded annually.

The bank was using an interest rate of %.

Reference no: EM131575301

Questions Cloud

What is current share price : Metallica Bearings, Inc., is a young start-up company. what is the current share price?
What is the required rate of return on stock with beta : Assume that the risk-free rate is 2.5% and the expected return on the market is 10%. What is the required rate of return on a stock with a beta of 0.9?
Riskier stock exceed required return on less risky stock : By how much does the required return on the riskier stock exceed the required return on the less risky stock?
What is the current yield on PKs bonds : PK Software has 7.8 percent coupon bonds on the market with 25 years to maturity. What is the current yield on PK's bonds? What is the effective annual yield?
The bank was using an interest rate : In 2014, a man mailed a exist 500 check to another man to repay a exist 500 debt of his great great grandfather. The bank was using an interest rate
How much long-term debt financing will be needed : How much new long-term debt financing will be needed in 2017?
What is austin projected net income : Austin's tax rate, interest expense, and dividend payout ratio are all expected to remain constant. What is Austin's projected 2017 net income?
Company achieve without having to raise funds externally : How large of sales increase can company achieve without having to raise funds externally?
What are your forecasts of company year-end inventory level : Regression and inventories Jasper Furnishings has $350 million in sales. what are your forecasts of the company's year-end inventory level?

Reviews

Write a Review

Financial Management Questions & Answers

  Means of encouraging improvements in human rights

More than 500 U.S. firms have developed offices or factories in China. Many other U.S. firms have become exporters to China in recent years. However, the U.S. government has periodically threatened to restrict business between the United States and C..

  Find the data capital spending for sprint

Find the data capital spending for SPRINT.

  General cash offering to raise needed funds

The Educated Horses Corporation needs to raise $20 million to finance its expansion into new markets. Suppose the offer price is $40 per share and the company's underwriters charge an 8 percent spread. The SEC filing fee and associated administrative..

  What is the current value of the stock

what is the current value of the stock?

  Long-term debt-what is the operating cash flow

In 2008 a firm has 2,550,000 in long-term debt, 760,000 in common stock and an addition to surpuls of 6,300,000. In 2009 the firm has long-term debt of 3,850,000, capital stock of 905,000 and an additional paid in surplus of 8,500,000, dividends paid..

  What is the actual cost of the acquisition

Firm X is being acquired by Firm Y for $35,000 worth of Firm Y stock. The incremental value of the acquisition is $2,500. Firm X has 2,000 shares of stock outstanding at a price of $16 a share. Firm Y has 1,200 shares of stock outstanding at a price ..

  Common way to value a share of stock

In practice, a common way to value a share of stock when a company pays dividends is to value the dividends over the next five years or so, then find the “terminal” stock price using a benchmark PE ratio. Suppose a company just paid a dividend of $1...

  Implications of opening and closing credit cards

What strategies have you used?Explain the importance of reviewing your credit report. How often should this be done? What are the implications of opening and closing credit cards on one's credit card status and score?

  Find the mean and standard deviation of the portfolio

Find the mean and standard deviation of the portfolio of risky assets (consisting of investments in three stock portfolios and two bond portfolios) currently chosen by the college's fund manager

  Including the final partial payment

A recent college graduate buys a new car by borrowing $20,000 at 8.4%, compounded monthly, for 5 years. She decides to pay an extra $14 per payment. How many payments (that include the extra $14) will she make, including the final partial payment?

  What is your best estimate of the aftertax cost of debt

Shanken Corp. issued a bond with a maturity of 10 years and a semiannual coupon rate of 8 percent 3 years ago. The bond currently sells for 96 percent of its face value. The book value of the debt issue is $50 million. What is your best estimate of t..

  What interest rate would the investment have to yield

Stanley Roper has $2,300 that he is looking to invest. His brother approached him with an investment opportunity that could give Patrick $4,600 in 4 years. What interest rate would the investment have to yield in order for Stanley’s brother to delive..

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