Start your trial now! First week only $4.99!*arrow_forward*

Question

Suppose on January 1st you deposit $100 in an account that pays a nominal interest rate of 11.33463% with interest added (compounded) daily. How much will you have in your account on October 1st or 9 months later?

Tagged in

Business

Finance

Find answers to questions asked by students like you.

Q: If a family spent $250 a week on their typical purchases in 1950, how much would those purchases hav...

A: Calculating the cost of purchases in 1980 using consumer price index. We have,1980 purchases = 1950 ...

Q: your client wants to buy a new car. the financing terms are: sticker price: 100,000.00 usd cash disc...

A: Upfront purchase price = $ 100,000 - 21% discount = 79,000Hence, PV = - 79,000Otherwise under instal...

Q: You are negotiating to make a 6-year loan of $40,000 to Breck Inc. To repay you, Breck will pay $5,0...

A: In order to profit from lending, one has to ensure that the PV of loan payments must be greater than...

Q: Simone's Sweets is an all-equity firm that has 9,100 shares of stock outstanding at a market price o...

A: As is situation: All equity, no debt, hence no interest payment, Let T be the tax rate.Hence, Pre ta...

Q: Smathers Corp. stock has a beta of 1.23. The market risk premium is 7.00 percent and the risk-free r...

A: Calculating the cost of equity capital using the formula of capital asset pricing model. We have,Cos...

Q: Better Mousetraps has developed a new trap. It can go into production for an initial investment in e...

A: NPV refers to the Net Present Value of which is a distinction between cash inflows and cash outflows...

Q: What is the future value in 12 years of $1,000 payments received at the beginning of each year for t...

A: As a first step, let's gather all the information that question has to offer.Annuity investment = A ...

Q: The common stock of Sophia Enterprises serves as the underlying asset for the following derivative s...

A: Forwards contract price, F = Strike price of the option, K = $ 50Price of a call option, C = $ 5.20

Q: Hello, I'm having a hard time with finance in general. I can do basic math with out difficulity but...

A: Finance or financial management involves handling of large quantum of money. Whenever money exchange...

Q: The prices of a certain security follow a geometric Brownian motion with parameters mu=.12 and sigma...

A: Let's pull together all the variables of Black Scholes Model:S = Current stock price = 40K = Strike ...

Q: In November 2017 treasury 41/2s of 2044 offered a semiannually compaunded yiedl to maturity of 2.66%...

A: Asssuming there are no typos in the question, phrase ' 4 1/2 s of 2044' refers to a bond that pays a...

Q: Francis Inc.'s stock has a required rate of return of 10.25%, and it sells for $25.00 per share. The...

A: Formula to calculate the expected year-end dividend:

Q: Storico Co. just paid a dividend of $2.65 per share. The company will increase itsdividend by 20 per...

A: Calculation of Price of Stock Today:Excel Spreadsheet:

Q: 1. Multinational corporations Why do companies go global? Multinational corporations operate in loca...

A: The best describe reason for Saltwater Corp is “to seek production efficiency”.Justification: The co...

Q: Why should a real estate listing contract be in writing and what are the essential elements of a lis...

A: Real estate contracts refer to legal aggreement between different parties. It is enforceable by law ...

Q: Suppose the current risk-free rate of return is 3.5 percent and the expected market return is 9 perc...

A: Introduction: Retained earnings are the revenues or profits that an organization has produced to dat...

Q: Boulder Furniture has bonds outstanding that mature in 13 years, have a 6 percent coupon, and pay in...

A: Calculation of Yield to Maturity:Excel Spreadsheet:

Q: Find the following values assuming a regular, or ordinary, annuity: The present value of $400 per...

A: Calculation of present value of $400 per year for 10 years at 10%: Excel spread sheet:

Q: What is the value of the cost pool and allocation rate if patient service is used as cost driver and...

A: a ) What is the Value of Cost Pool?The Value Cost pool is 1, 00,000

Q: A store will give you a 4.00% discount on the cost of your purchase if you pay cash today. Otherwise...

A: Let's assume the cost of purchase is C. On immediate payment,Discount = 4%Hence, the discounted cost...

Q: please colud you explain me what how you using calculator or computation to determine NPV or IRR. A ...

A: a.Calculation of Internal Rate of Return for each investment:The Internal Rate of Return or IRR for ...

Q: Critique this statement: “The use of debt financing lowers the net income of the firm, and hence deb...

A: The statement has two parts:The use of debt financing lowers the net income of the firm,Hence debt f...

Q: Hot Bagels Inc. has been experiencing declining earnings but has just announced a 50 percent salary ...

A: Calculating the number of directors can be elected by the dissident stockholders with proxies they n...

Q: Everest Inc. is presently enjoying relatively high growth because of a surge in the demand for its n...

A: All financials below are in $.D0 = 0.85There are three stages of growth: g1 =28% for next two years ...

Q: Suppose the expected return for the market portfolio and risk-free rate are 13 percent and 3 percent...

A: Treynor ratio = (Expected return - Risk free rate) / BetaTreynor ratio of the market = (Expected ret...

Q: A company is going public with an offering price of $10 per share. The gross spread is 7 percent. Ho...

A: Offer price, P = $ 10 per shareGross spread, S = 7%Portion received by the bank = P x S = $ 10 / sh...

Q: how I can fill the blanc with correct entries Assets Current Assets Cash ...

A: Hi. Since all the other figures are in millions, we have assumed the inventory value to be $1,410,00...

Q: Consider Commodity Z, which has both exchange-traded futures and option contracts associated with it...

A: There is a specific relationship that exists between the call premium and the put premium for an un...

Q: You borrowed $700 at 5% compounded quarterly. Yourpayments are $150 at the end of each year. How man...

A: We will adopt the following approach:It's a typical time value of money case, where we have to find ...

Q: A devoted Indiana basketball fan needs $11,200.00 to attend the Final Four exactly one year from tod...

A: As a first step let's assign a symbol to each of the information we have:Future value, FV = $ 11,200...

Q: Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops...

A: Please see the table below. Please be guided by signs like [+] / [-] used in each row item to help y...

Q: And what are the expected returns for stocks A and B if the conditions are as follows? A0 0.03...

A: Calculation of Expected Return for Stock A:

Q: Participation #7: Why are ROE and EPS such important measures of performance to investors?

A: Let's recall that an (equity) investor is the last one in the pecking order to get the returns. They...

Q: Heidi owns 680 shares of Boyd Enterprises, which is priced at $65.44 per share. The company plans a ...

A: Number of stocks prior to stock split, Npre = 680Proposed stock split: 6 for 5 that is a shareholder...

Q: A) Use the appropriate formula to find the value of the annuity. B) Find the interest. Periodic ...

A: Part (a)If an annuity A is paid at the end of period over N periods and bears a discount (interest) ...

Q: PC Shopping Network may upgrade its modem pool. It last upgraded 2 years ago, when it spent $100 mil...

A: Net cash flow: The difference between the company’s inflow and outflow of cash calculated for a give...

Q: Assume that you purchase a five-year, $1,000 par value bond, with a 6 percent coupon and a yield of ...

A: Calculating the current price of the bond. We have,Current price of bond = C [1 – (1 / (1+r)n ] / r ...

Q: R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next yea...

A: Cost of Equity:Cost of equity is the amount or rate which a company bears for the issue of share. In...

Q: I already ask this but I whant know how you do the calculation, please could you show me all the ste...

A: When the bond matures, the borrower repay the principal amount to the holder of the bond. The princi...

Q: Larry’s Tire Company Inc. has earnings of $9 million with 2,100,000 shares outstanding before a publ...

A: Calculating the value of earnings per share before the offerings. We have,Earnings per share (EPS) =...

Q: Deb and Rusty have just gotten married and wish to buy a home. They both work in Boston and have a c...

A: Let the largest amount they can use for a down payment be $ A.Cost of the house, C = $ 350,000Hence...

Q: If the annual geometric mean for the equity risk premium is 8.4 percent, what percentage of the equi...

A: Calculation of Percentage of Equity Risk Premium:

Q: One of the important components of multinational capital budgeting is to analyze the cash flows gene...

A: First question - Multiple choiceThe correct answer is first option: The Parent company at a high cos...

Q: How I RESOLVE THIS PROBLEM Sun instrument expects to issue new stock at $34 a share with estimated f...

A: Calculation of cost of retained earnings:

Q: Chang Industries has bonds outstanding with a par value of $200,000 and a carrying value of $203,000...

A: Calculation of gain or loss on retirement:

Q: on B (Use the answer from part a to find these answers. Round to the nearest cent as needed.)

A: P = $ 150,000r = 3% = 0.03n = 12 (months in a year)t = 40 years

Q: You have your choice of two investment accounts. Investment A is a 9-year annuity that features end-...

A: All financials below are in $.Characterisitics of Investment A:Monthly annuity, M = 1,780Frequency i...

Q: If I have that the standard estimator of the volatility parameter is 0.2491, how can I estimate the ...

A: The geometric Brownian motion (BM), in stock prices is given by the relationship: S(t) = S0eX(t)wher...

Q: In Porter's five-factor model why does Porter not include market size and growth rate when determini...

A: Porter's five forces analysis is a structural framework to evaluate the attractiveness of an industr...

Q: Assume that you purchased an 8 percent, 20-year, $1,000 par, semiannual payment bond priced at $1,01...

A: We can find the yield using the RATE function of excel.Payment frequency = semi annual; Hence, perio...