Answer:
Results are below.
Explanation:
Giving the following information:
Monthly saving= $200
Future value= $9,384.44
Number of years= 3
<u>a) To calculate the Future Value, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,400*[(1.11^3) - 1]} / 0.11
FV= $8,021.04
<u>b) To calculate the semiannual deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= semiannual deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
i= 0.15/2= 0.075
n= 3*2= 6
A= (9,384.44*0.075) / [(1.075^6) - 1]
A= $1,295.47
<u>c)</u> i= 0.1375/4= 0.0344
n= 3*4= 12
A= (FV*i)/{[(1+i)^n]-1}
A= quarterly deposit
A= (9,384.44*0.0344) / [(1.0344^12) - 1]
A= $644.89
<u>d)</u> i= 0.115/12= 0.0096
n= 3*12= 36
A= (FV*i)/{[(1+i)^n]-1}
A= monthly deposit
A= (9,384.44*0.0096) / [(1.0096^36) - 1]
A= $219.46
<u>e)</u> i=0.0825/52= 0.0016
n= 3*52= 156
A= (FV*i)/{[(1+i)^n]-1}
A= weekly deposit
A= (9,384.44*0.0016) / [(1.0016^156) - 1]
A= $53.01
Answer:
Expected rate of return will be 13.6 %
Explanation:
We have given risk free return = 4 %
Risk premium is 4% and relative to this risk premium is 0.6
And then risk premium is changes to 6 % and relative to it is 1.2
We have to find the expected return on this stock '
So expected return = risk free rate +
So expected return = 4+(0.6×4) +( 1.2×6) = 4+2.4+7.2 = 13.6 %
Around 69% of people went to college.
Suppose that a worker earns x$ every other month. In September he earns 5x. We have that his total earnings are 11*x +5x (Eleven months income plus September). Hence 16x is the amount of total earnings. The ratio of earnings in September to the total earnings is
=0.3125. Hence, 31,25% of his earnings where accrued in September.
<span>Coinsurance is the answer to this question. Coinsurance is
the amount the insured must pay before the health care benefits can be
reimbursed after you have paid your deductibles. Deductible in insurance is the
yearly payment before you can use your plan.</span>