What was tom apr for his investment

Assignment Help Financial Management

Reference no: EM131964888

Finance: HPR,APR,EAR

1. Leslie bought a stock 10 years ago for $500. She just sold it for $800. What is her APR? (Enter your answer as a decimal, i.e. if your answer is 2.5%, enter .025 for your response)

2. Tom just invested $150,000 to open Tom's Bistro, an upscale Italian eatery. The table below shows the annual net profit's of Tom's Bistro. What was Tom's APR for his investment? (Enter your answer as a decimal, i.e. if your answer is 2.5%, enter .025 for your response)

Year 1 - $20,000

Year 2 - $35,000

Year 3 - $50,000

Year 4 - $40,000

Year 5 - $15,000

3. Donna buys three shares of ownership of a local bar. The shares cost $10,000 each. Each year, she and her partners each receive $2,000 of income per share. If Donna can sell her shares for $12,000 after collecting her payment in the 6th year, what was her APR? (Enter your answer as a decimal, i.e. if your answer is 2.5%, enter .025 for your response)

4. Jerry's savings account pays 6% interest compounded monthly. What is his EAR? (Enter your answer as a decimal, i.e. if your answer is 2.5%, enter .025 for your response)

5. Ron lends Andy $100. Andy repays Ron $105 a month later. Which rate of return will most accurately reflect Ron's investment performance

a. HPR

b. APR

c. EAR

d. It doesn't matter, they will all give the same answer.

Reference no: EM131964888

Questions Cloud

Discuss about rodent complaints : The requirement is: will be helping the health department get ahead of 311 rodent complaints by categorizing them into three different complaints

Explore what steps might you take to gain the cooperation : Explore What steps might you take to gain the cooperation of the third party after the policy has been initiated.

The expected change in net interest income : The expected change in net interest income is (enter the value as a whole number with no decimal places.

Develop your understanding of and apply oops techniques : You will develop your understanding of and apply object-oriented programming techniques, in particular, those relating to inheritance and polymorphism.

What was tom apr for his investment : The table below shows the annual net profit's of Tom's Bistro. What was Tom's APR for his investment?

What is the economic order quantity for item : If Petromax wants to provide a 95 percent cycle-service level, what should be the safety stock and the reorder point?

How much could you withdraw at the beginning of each year : If the funds remain in an account earning 8.5%, how much could you withdraw at the beginning of each year for the next 25 years?

Write paper on bmw - ultimate driving machine : Write paper on the following topic: BMW - ultimate driving machine. Introduction: As I have chosen to BMW as for my marketing plan.

Characteristics and values of the company : What does the site tell you about the characteristics and values of the company? Do you believe this Web site is effective in attracting high-quality candidates

User Account

All Pages