Fi 410 Ch 2

academic year interest rate of 3.76 percent would pay a 5,032 dollars interest over 10 years,

Beverly and Kyle Nelson currently insure their cars with separate companies paying $450 and $375 a year. If they insure both cars with the same company, they would save 10 percent on the annual premiums. What would be the future value of the annual savings over ten years based on an annual interest rate of 6 percent?

You have been making payments for the last 25 years and have finally paid off your mortgage. Your original mortgage was for $345,000 and the interest rate was 5% per year compounded semi-annually for the entire 25 year period. How much interest have you paid over the last 5 years of the mortgage?

| |finance the balance. How much will each monthly loan payment be if they can borrow the necessary funds for 30 years at 9% per |

8. Karen has $16,000 that she wants to invest for 1 year. She can invest this amount at The North Bank and earn 5.50 percent simple interest. Or, she can open an account at The South Bank and earn 5.39 percent interest, compounded monthly. If Karen decides to invest at The North Bank, she will:

What annual interest rate is needed to produce $200,000 after five years if only $100,000 is invested?

10. An investment of $1,000 today will grow to $1,100 in one year. What is the continuously compounded rate of return?

Therefore the annual interest rate is 8% and the effective annual rate compounded quarterly is 8.24%

for the next three years and 3% per year thereafter. Calculate the value of EverGrow

2. If you had a payment that was due you in 5 years for $50,000 and you could earn a 5% rate of return, how much

Give the interest rate is 1 and a half times that of prime lending rate,

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

The perfect competitive market is a description of a market where no participants are large enough to have the market power to set the price of a homogeneous product, this is because the conditions set for perfect competition are strictly applied.

He surveyed the idea of an efficient capital market, and made this following famous definition: “A market in which prices always ‘fully reflect’

stock market so that it would not be possible that investors do not be affected by that. Below,