periods‚ how income will the grandchild receive each year? Answer From financial calculator $2‚000‚000 PV 1 N 7% I/Y CPT PMT = 2‚140‚000 $2‚140‚000 - $2‚000‚000 = $ 140‚000 The granchild will receive $140‚000 for each year b) Nicole establishes a seven-year‚ 8 percent loan with a bank requiring annual end-of-year payments of $960.43. Calculate the original principal amount. Answer From financial calculator $960.43 PMT 7 N 8% I/Y CPT PV = $5000.35 The
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(For your information‚ in this whole report‚ Petronas Dagangan Bhd‚ we will short it as PDB and Petronas Gas Bhd as PGB) Question (a) Background and Future Prospects of the selected Company i) History PDB is incorporated in 1982 and listed on the Main Board of Bursa of Bursa Malaysia in 1994. Notably‚ PDB is also known as the principal domestic marketing arm of Petroliam Nasioanal Berhad (PETRONAS) and Malaysia’s leading retailer and marketer of downstream oil and gas products. Today‚ PDB
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Manual of Personal Financial Planning Process Xiang Li‚ Bixin Rao‚ Hannah Tran Instructor: Vanessa Quezada Ling 305 W Spring 2014 Table of Contents I. Introduction .............................................................................. 3 II. Personal Planning Process ....................................................... 3 1. Establish & Define Client Relationship .................................. 3 2. Gather Client Data ...........................................
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Question 1) 1) Discuss puzzles and anomalies 2) Discuss three forms of market efficiency Marketefficiency is a measure of the availability(to all participants ina market) of the information that provides maximum opportunities tobuyers and sellers to effect transactions with minimum transactioncosts. Types of Efficiency: Operational efficiency: It refers to thecost to buyers and sellers of transactions in securities on theexchange. This may be promoted by creating as much competitionbetween
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and negligible risk of default. Under one classification‚ treasury bills are categorised as ad hoc‚ tap and auction bills and under another classification it is classified on the maturity period like 91-days TBs‚ 182-days TBs‚ 364-days TBs and two types of 14-days TBs. In the recent times (2002–03‚ 2003–04)‚ the Reserve Bank of India has been issuing only 91-day and 364-day treasury bills. the auction format of 91-day treasury bill has changed from uniform price to multiple price to encourage more
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ALTERNATIVE PROBLEMS AND SOLUTIONS ALTERNATIVE PROBLEMS 5-1A. (Compound Interest) To what amount will the following investments accumulate? a. $4‚000 invested for 11 years at 9% compounded annually b. $8‚000 invested for 10 years at 8% compounded annually c. $800 invested for 12 years at 12% compounded annually d. $21‚000 invested for 6 years at 5% compounded annually 5-2A. (Compound Value Solving for n) How many years will the following take? a. $550 to grow to $1‚043.90 if invested
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and (b) depend on whether you sell the stock after one year or continue to hold it? The answer does not depend on whether you sell the stock or hold it. P6-2: A financial adviser claims that a particular stock earned a total return of 10% last year. During the year the stock price rose from $30 to $32.50. What dividend did the stock pay? 0.10 = ($32.50 + D - $30)/$30 which means D = $0.50 Chapter 7 P7-1: a. Suppose that over the long run‚ the risk premium on stocks relative
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A.) CREDIT UNIONS - A nonprofit financial cooperative offering deposit accounts‚ low-interest loans‚ etc. As soon as you deposit funds into a credit union account‚ you become a partial owner and participate in the union’s profitability. Credit unions are formed by large corporations and organizations for their employees and members. B.) MUTUAL FUNDS - An investment program funded by shareholders that trades in diversified holdings and is professionally managed. C.) FINANCE COMPANIES - A
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List the various factors that influence the cost of money. Discuss how market interest rates are affected by borrowers’ need for capital‚ expected inflation‚ different securities’ risks‚ and securities’ liquidity. Explain what the yield curve is‚ what determines its shape‚ and how you can use the yield curve to help forecast future interest rates. Chapter 6: Interest Rates Learning Objectives 117 © 2012 Cengage Learning. All Rights Reserved. May not be copied‚ scanned‚ or duplicated
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individual stock’s diversifiable risk‚ which is measured by the stock’s beta‚ can be lowered by adding more stocks to the portfolio in which the stock is held. ____ 4. A firm can change its beta through managerial decisions‚ including capital budgeting and capital structure decisions. ____ 5. The slope of the SML is determined by the value of beta. ____ 6. The slope of the SML is determined by investors’ aversion to risk. The greater the marginal investor’s risk aversion‚ the steeper the
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