023A:If you can double your money in 22 years, what is the implied annual rate of interest, given that compounded semi-annually?

Question 1

.      023A:If you can double your money in 22 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box. 
Answer

 

1 points   

Question 2

.      027:Say, you deposit $1,138 in a bank for 18 years. What is the amount you will have in the bank at the end of 18 years if interest of 6 % compounded monthly for first 5 years and interest of 10 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 
Answer

1 points   

Question 3

.      How many months it will take to grow your money from $4,760 to $7,928 if you can earn an interest of 11% compounded monthly? Note: Do not write “months” in your answer. Simply write the number in the answer box. 
Answer

1 points   

Question 4

.      If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)? 
Answer

.	.    a.	.    $770
.	.    b.	.    $1,176
.	.    c.	.    $827
.	.    d.	.    $828
.	.    e.	.    $833

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1 points   

Question 5

.      How much do you need to invest today in order to have $4,555 at the end of 9 years if you are sure to earn an interest at the rate of 13%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 
Answer

1 points   

Question 6

.      How much do you need to invest today in order to have $6,756 at the end of 6 years if you are sure to earn an interest at the rate of 10%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box. 
Answer

1 points   

Question 7

.      How many years it will take to grow your money from $4,168 to $8,282 if you can earn an interest of 6% compounded quarterly? Note: Do not write “years” in your answer. Simply write the number in the answer box. 
Answer

1 points   

Question 8

.      Assume interest rate of 12%. A company receives cash flows of $596 at the end of year 5, $238 at the end of year 7, and $542 at the end of year 10. Compute the future value of this cash flow stream.
Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.



Answer

1 points   

Question 9

.      Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6^th year.
Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

Answer

1 points   

Question 10

.      The ABC Company is considering a new project which will require an initial cash investment of $10,754. The projected cash flows for years 1 through 4 are $9,870, $5,696, $9,263, and $5,029, respectively. If the appropriate discount rate is 3%, compute the NPV of the project.
Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.


Answer

1 points   

Question 11

.      What is the future value of $186 for 14 years at 6 percent if interest is compounded semi-annually? Note: Do not enter “$” in your answer. Simply write down the number that you get as your answer. 
Answer

1 points   

Question 12

.      If you can triple your money in 16 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.. 
Answer

1 points   

Question 13

.      Barrett Pharmaceuticals is considering a drug project that costs $180,372 today and is expected to generate end-of-year annual cash flows of $11,811, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?
 Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

Answer

1 points   

Question 14

.      Assume interest rate of 7%. Suppose that you receive $73,343 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.
Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points. 
Answer

1 points   

Question 15

.      Assume interest rate of 4%. A company receives cash flows of $81,403 at the end of years 4, 5, 6, 7, and 8, and cash flows of $289,772 at the end of year 10. Compute the future value of this cash flow stream.
Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

Answer

1 points   

Question 16

.      In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years.
Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enter the answer rounded off to two decimal points.

Answer

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