{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

FIN 3403 exam 1 question 2

FIN 3403 exam 1 question 2 - 1 If you put $2,400 into an...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. If you put $2,400 into an account at the end of each year for the next 10 years, and at the end of 10 years you have $84567 in your account, what was the annual compound rate of return on your account? (26.17%) 2. You can invest your money at 7.75% compounded monthly. What is your equivalent annual rate of return? (8.03%) 3. What is the quoted APR(annual percentage rate) that corresponds to an EAR of 9% if compounding occurs daily? (8.6188%) 4. What is the value today of an annuity of $4,500 per year if the first payment occurs 6 years from today and the last payment is make 19 years from today? The discount rate if 7.5 percent compounded annually. ($26,609.37) 5. You want to put equal annual deposits in an account at the end of each of the next five years so that you will be able to make withdrawals of $50,000 a year for ten years with the first withdrawal coming six years from today. If your account earns interest at the rate of 8% compounded annually, how much must you deposit each year? ($57,188.83) 6. Computer the present value of $50,000 discounted for 5 years at (a) 12% ($28,371.34) at (b) 10% compounded quarterly ($30,513.55)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern