What is the rate of interest in given problem

Assignment Help Finance Basics
Reference no: EM131937399

Question: Assume that you make the following three investments: 1500 dollars now, 600 dollars in two years, and 750 dollars in 5 years. All three investments earn simple interest at the same rate. If the accumulated value of the sum of the three investments 10 years after the initial investment is 3750 dollars, what is the rate of interest?

Reference no: EM131937399

Questions Cloud

Which currency is expected to appreciate : What is the current value of one peso in terms of U.S. dollars? Given the relative inflation rates, what will the exchange rates be 1 year from now?
How much should you be willing to pay for stock : Assume that you plan to buy a share of IBM stock today and to hold it for 2 years. Your expectations are that you'll receive a dividend of 19.00.
How much will you accumulate in your plan : Assume that you pay the contribution of $10,000 to your pension plan at the end of each year (now it is the beginning of the year).
What is the reward-to-volatility ratio of risky portfolio : What is the reward-to-volatility ratio (S) of your risky portfolio and your client's portfolio? (Do not round intermediate calculations).
What is the rate of interest in given problem : Assume that you make the following three investments: 1500 dollars now, 600 dollars in two years, and 750 dollars in 5 years. All three investments earn simple.
What fee would you attempt to negotiate for the contract : What fee would you attempt to negotiate for this contract? Would your answer change if your research indicated the other sources for similar work have usually.
Find the real rate of return for the british investor : Assume that parity holds. Consider a U.S. stock that costs $80. Over the year the stock's dollar-denominated return was 20%. U.S. inflation is 5%.
What are the legal considerations for alex and william : Assume that on October 1, 2016, Alex sold William an S&P 500 stock-index future contract that had January 1, 2017, expiration date.
How much would you be willing to pay for investment : Assume that you have the opportunity to receive $3,000 at the end of each of the next five years. Given an interest rate of 6%.

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate the average number of us states

You want to estimate the average number of U.S. states that people living in the United States have visited.

  Dividend every year for the time being

How much are you willing to pay for one share of this stock is you want to earn a 14.5% annual return?

  What is your view of what is happening

Examine the literature supporting the increase in autism in the last ten years. What is your view of what is happening?

  What are the important elements of political risk

What is political risk? What are the important elements of political risk?- How can companies prepare for political risk?

  How the fed targets the fed funds rate

Why the Fed targets but does not set the Fed Funds Rate?

  Asymmetric information problems

The pecking order states how financing should be increased. In order to avoid asymmetric information problems and misinterpretation of whether management is sending a signal on security overvaluation the company's first rule is to:

  Why some restrictions should be imposed

Suppose there were no IRS restrictions on what constituted a valid lease. Explain, in a manner that a legislator might understand, why some restrictions should be imposed. Illustrate your answer with numbers.

  What is the fw of paul extra income

Paul works for a government agency in southern California making $70,000 per year. He is now being transferred to a branch office in Tennessee.

  How comfortable are you in using the various methods

How comfortable are you in using the various methods of financial statement analysis? Are there some methods that you use regularly in your current position?

  Calculate preferred sell price

Preferred Products has issued preferred stock with an $8 yearly dividend that will be paid in perpetuity. Suppose the discount rate is 12%, at what price should the preferred sell?

  Define the international fisher effect

Why is the approximate form of the Fisher Effect frequently used instead of the precise formulation? Does this introduce significant analysis error?

  What are the specific challenges of a networked firm

What are the development stages a firm typically goes through as it grows internationally and how does each stage affects the HR function?

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