Reference no: EM131107314

What is the future value of $2,944 invested for 9 years at 6.00 percent compounded annually?

One year ago, you invested $3,140. Today it is worth $3,700.50. What rate of interest did you earn?

Some time ago, Julie purchased eleven acres of land costing $15,190. Today, that land is valued at $59,547. How long has she owned this land if the price of the land has been increasing at 5 percent per year?

First City Bank pays 8 percent simple interest on its savings account balances, whereas Second City Bank pays 8 percent interest compounded annually.

If you made a $61,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 8 years

a. Compute the future value of $1,000 compounded annually for 20 years at 6 percent.

b. Compute the future value of $1,000 compounded annually for 15 years at 9 percent.

c. Compute the future value of $1,000 compounded annually for 25 years at 6 percent.

For each of the following, compute the present value (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):

Present Value	Years	Interest Rate	Future value
	12	6	15,951
	3	12	56,557
		13	891,073
	30	10	555,164

Wilkinson Co. has identified an investment project with the following cash flows:

Year	Cash Flow
1	$ 750
2	990
3	1,250
4	1,350

If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

If the discount rate is 18 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

If the discount rate is 24 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Four months ago, you purchased 1,400 shares of Lakeside Bank stock for $25.44 a share. You have received dividend payments equal to $.58 a share. Today, you sold all of your shares for $26.44 a share. What is your total dollar return on this investment?

Suppose a stock had an initial price of $56 per share, paid a dividend of $1.60 per share during the year, and had an ending share price of $66.

Compute the percentage total return.

You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 18 percent, -14 percent, 20 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 3.1 percent, and the average T-bill rate over the period was 4.4 percent.

a. What was the average real return on the stock?

b. What was the average nominal risk premium on the stock?