finance data bank

Question # 00003767 Posted By: spqr Updated on: 11/19/2013 10:42 PM Due on: 11/30/2013
Subject Business Topic General Business Tutorials:
Dot Image

Question 1 Find the following present and future values:

Present and future values

a. An initial £ 500 compounded for 1 year at 6 percent.

b. An initial £ 500 compounded for 2 years at 6 percent.

c. The present value of £ 500 due in 1 year at a discount rate of 6 percent.

d. The present value of £ 500 due in 2 years at a discount rate of 6 percent.

Question 2 Suppose John deposits £ 10,000 in a bank account that pays 10 percent interest annually. How much money will be in his account after 5 years?

Question 3 What is the present value of a security that promises to pay you £ 5,000 in 20 years? Assume that you can earn 7 percent if you were to invest in other securities of equal risk?

Question 4 If you deposit money today into an account that pays 6.5 percent interest, how long will it take for you to double your money

question 5

Your broker offers to sell a note for £ 13250 that will pay £ 2345.05 per year for 10 years. If you buy the note, what rate of interest will you be earning? Calculate to the closest percentage



Dot Image
Tutorials for this Question
  1. Tutorial # 00003571 Posted By: spqr Posted on: 11/19/2013 10:43 PM
    Puchased By: 2
    Tutorial Preview
    The solution of finance data bank...
    5001.docx (85.63 KB)

Great! We have found the solution of this question!

Whatsapp Lisa