Answer:
Final value= $2,282.013
Explanation:
Giving the following information:
Erick is planning to invest $500 at the end of year one, 800 at the end of year two, and 900 at the end of year three at 4.5 percent interest.
To calculate the total final value of the investment, we need to use the following formula for each deposit:
FV= PV*(1+i)^n
Deposit 1= 500*1.045^2= 546.013
Deposit 2= 800*1.045= 836
Deposit 3= 900
Final value= $2,282.013
Answer:
Investment in stock C is $122450.3311 rounded off to $122450.33
Explanation:
A portfolio which is equally as risky as market should have a beta equal to the beta of the market as beta is a measure of the riskiness. The beta of market is always equal to 1. The formula for beta of a portfolio is as follows:
Portfolio beta = wA * Beta A + wB * Beta B + ... + wN * Beta N
Where w represents the weight of each stock in the portfolio.
Let investment in stock C be x
1 = 146000/500000 * 0.91 + 134000/500000 * 1.36 + x/500000 * 1.51
1 = 0.26572 + 0.36448 + 1.51x / 500000
1 - 0.6302 = 1.51x / 500000
0.3698 * 500000 = 1.51x
1844900 / 1.51 = x
x = $122450.3311 rounded off to $122450.33
Answer:
The remaining part of the question is:
The interest payments are reinvested at the:
a.Coupon rate.
b.Current yield.
c.Yield to maturity at the time of the investment.
d.Prevailing yield to maturity at the time interest payments are received.
e.The average yield to maturity throughout the investment period
<u>Correct Answer:</u>
b.<u>Current yield. </u>
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Explanation:
Explanation:
Incomplete question. However, i infer you want to know what the annual net income implies.
Thus, itis important you know that the annual net income is calculated after taxes are deducted from the total salary one earns in a year's. So to determine the value, you need to know the total taxes for the year.
