What effective annual interest rate is being offered

Assignment Help Finance Basics
Reference no: EM13273077

If a borrower promises to pay you $1,900 9 years from now in return for a loan of $1,000 today, what effective annual interest rate is being offered? A. 5.26% B. 7.39% C. 9.00% D. 10.00%

Reference no: EM13273077

Questions Cloud

What is the potential difference across each capacitor : Capacitors C1=10\muF and C2=25\muF are each charged to 25V , then disconnected from the battery without changing the charge on the capacitor plates. What is the potential difference across each capacitor
What is the discount factor : What is the discount factor for $1 to be received in 5 years at a discount rate of 8%? A. .4693 B. .5500 C. .6000 D. .6806
What types of mutual funds might be considered : What types of mutual funds might be considered by the Brocks for their investment portfolio?
Find the shortest time in seconds required for the voltage : A source of AC voltage with a frequency of 60 Hz, Find the shortest time in seconds required for the voltage across the light bulb to reach 170 V
What effective annual interest rate is being offered : If a borrower promises to pay you $1,900 9 years from now in return for a loan of $1,000 today, what effective annual interest rate is being offered? A. 5.26% B. 7.39% C. 9.00% D. 10.00%
Explain mass balance for the soyabean constituents : 1,000 kg of soya beans, of composition 18% oil, 35% protein, 10.5% moisture and 36.5% other contents of carbohydrate ,fiber and ash are
The skill requirements for managerial jobs in the united sta : Discuss how the following trends are changing the skill requirements for managerial jobs in the United States: a) increasing use of computers, b) increasing international competition, c) increasing work-family conflicts.
Determine the magnetic flux through the loop : A uniform magnetic field passes through a horizontal circular wire loop at an angle 17.3° from the normal to plane of the loop. determine the magnetic flux through the loop
What is a mutual fund : What is a mutual fund? What types of fees do I pay when I purchase/hold one? Find me a mutual fund to invest in (provide the ticker symbol and fund name) that has a beta close to 1.0

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of expected return and beta

Calculation of expected return, beta, coefficient of variation, standard deviation and required rate of return

  Determination of risky stock

Common stock A has an expected return of 10%, a standard deviation of future returns of 25%, and a beta of 1.25. Common stock B has an expected return of 12 percent, a standard deviation of future returns of 15 percent,

  Sirius xm flexible budgeting

Set up the flexible budget at three levels for the income statement. Companies prepare budgets based on absorption and/or variable costing.

  Calculation of the risk-free rate

Calculation of the risk-free rate or the rate of return on a risk-free portfolio and suppose that securities A and B are perfectly negatively correlated

  Computing portfolio beta

A stock portfolio invested 35% in Stock Q, 25% in Stock R, 30% in Stock S, and 10% in Stock T. The betas for these 4 stocks are .84, 1.17, 1.11 and 1.36 respectively. Compute the portfolio beta?

  What are the annual total cash flows

What are the annual total cash flows? What is the NPV if the project has a 13% required return?

  Find the price for imm

Underwood Industries just paid a dividend of $1.45 each share. The dividends are expected to grow at 25 percent rate for the next eight years and then level off to a 7 percent growth rate indefinitely.

  Prepare a multi-step income statement

Prepare a multi-step income statement and a classified balance sheet in proper form using accrual accounting.

  How would the payment differ if you paid interest only

You wish to buy a $9,000 dining room set. The furniture store offers you a 3-year loan with an 10 percent APR. What are the monthly payments?

  Objective type questions on investment decisions

Objective type questions on investment decisions and Ampulla Production Studios charges the Sound Effects Department's costs to two operating departments

  Equivalent lump-sum payment

Shelley wants to cash in her winning lottery ticket. She can either receive 10, $100,000 semiannual payments starting today-What is the equivalent lump-sum payment?

  Fishhook just went public and is considering a bond issue

FishHook (FH) just went public and is considering a bond issue with warrants attached

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