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- 01.The ABC Company deposited $100,000 in a bank account on
June 15 and withdrew a total of $115,000 exactly one year later.
Compute:
a) The interest which the ABC Company received from the
$100,000 investment, and
b) The annual interest rate which the ABC Company was
paid.
Step by step
Solved in 2 steps
- How is buying a house to live in a type of financial investment?Four years after the issue of a $10,000, 9.9% coupon, 20-year bond, the rate of return required in the bond market on long-term bonds was 8.2% compounded semiannually. b. What capital gain or loss (expressed in dollars) would the original owner have realized by selling the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Capital (Click to select) of $[What refers to the amount of money paid for the use of borrowed capital? A. Interest B. Rate of interest C. Simple interest D. Principal If an initial investment of $1,000 is invested at 8% interest per year with annual compounding, how much would be in the account after five years? A. $1,201.8 B. $1,471.6 C. $1,091.8 D. $1,080.0
- Question to Answer USING a FINANCIAL CALCULATOR SHOWING ALL WORKING. 1. Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount should she have deposited as a fixed deposit in the bank so as to accumulate the amount needed for her investment in stocks and bonds when needed?Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is o ffering five- year investment certificates that pay interest compounded quarterly. What is the minimum nominal interest rate he would have to receive to reach his go al? |17. A credit card company charges an interest rate of 1.375 % per month on the unpaid balance of all accounts. The annual interest, they claim, is 12(1.375%) =16.5%. What is the effective interest rate per year being charged by the company? a. 16.5% b. 17.81% c. 17.55% d. 18.5%
- 2. Apple Computer wants to have $2.1 billion available 5 years from now in order to finance initial production of a device that, based on your behavior, will learn how to monitor and control nearly all of the electronic devices in your home, such as thermostat, coffee pot, TV, sprinkler system, etc. using Internet of Things (IOT) technology. The company expects to set aside uniformly increasing amounts of money each year to meet its goal. If the amount set aside at the end of year 1 is $100 million, how much will the uniform increase, G, have to be each year? Assume the investment funds grow at a rate of 18% per year.1. you are earning 7% annually and contributing the max allowable each year: if you want to have at least $1,000,000 in your IRA by age 60, what is the latest age you can start investing? b. Suppose you invest $3,000 and earn 7% interest per year on this investment. How many years will it take for your total investment to be worth $6,000 c. imagine the interest rate on your savings account was 0.5% per year and inflation was 2% per year. After one year, your ability to buy something with the money in this account with be: Question options: more than today less than today exactly the same impossible to say2. A capital investment can be purchased for an immediate outlay of S100,000. The investment is expected to produce annual cash flows of s10.000 for the next 20 years beginning on the date of the cash outlay. How much wealth is created or destroyed by this investment at a required return of 10%?
- Your father invested a lump sum 24 years ago at 5.75 percent interest compounded monthly. Today, he gave you the proceeds of that investment which totaled $105,099.24. How much did your father originally invest? A. $15,929.47 B. $16,500.00 C. $17,444.86 D. $26,528.00 E. $27,470.751a) Jane and John have found a house, which owing to a depressed real estate market costs only $201,500. They will put $22,000 down and finance the remainder with a 30-year mortgage loan of 4.65% compounded monthly. i. How much will their monthly loan payment be? ii. How much interest will they pay in the second payment? 1b.) They will also have the following expenses: property taxes of $2,100, homeowner's insurance of $1,625, and $290 mortgage insurance (in case on of them dies before the loan is repaid, a requirement from the bank). These annual amounts are paid in 12 installments and are added to the loan payment. What will their full monthly cost be? i.) If they can afford $1200 a month, can they afford the house?Use the following information for questions 1 to 2. Show all your calculations. Mr. Lai bought an apartment three years ago. The purchase price was $5,000,000. He borrowed 60% of the purchase price through a mortgage from his bank. The interest rate of the mortgage was 6% p.a. The mortgage was to be repaid monthly for 18 years. He was not allowed to make early repayment of the principal in the first three years. After the first three years he is allowed to make any early repayment as he likes. The bank manager told Mr. Lai that the mortgage interest rate has been revised to 4.8% p.a. starting today. Calculate the total amount of interest Mr. Lai has paid in the third year. Since Mr. Lai has an option to make early repayment of the principal to the bank now, he decides to make an early repayment of $200,000 principal today. After repaying the $200,000 today, in how many more months will the mortgage be paid off if he wants to keep the original repayment amount? After repaying the…
