The formula of the future value of an annuity ordinary is
Fv=pmt [((1+r/k)^(kn)-1)÷(r/k)]
Fv future value 800000
PMT monthly payment?
R interest rate 0.05
K compounded monthly 12
T time 20 years
Solve the formula for PMT
PMT=Fv÷[((1+r/k)^(kn)-1)÷(r/k)]
PMT=800,000÷(((1+0.05÷12)^(12
×20)−1)÷(0.05÷12))
PMT=1,946.31 per month
Interest earned
800,000−1,946.31×12months×20 years
=332,885.6
Hope it helps!
A certificate of deposit (CD) would be the best banking
choice when the interest rate is determined ahead of time and there is an
assurance to get back what you put in plus interest once the CD matures. If you leave the money alone during the
investment period then the bank will pay you an interest rate slightly higher
than what you would have earned in a money market or checking account. Thus,
all gains from certificate of deposits are taxable as income unless they are in
a tax-deferred (IRA) r tax-free (Roth IRA) account.
Answer:
Yes, Stock A has higher dividend yield
Explanation:
given data
market risk premium = 6.0%
risk-free rate = 6.4%
A B
Beta 1.10 0.90
Constant growth rate 7 % 7%
to find out
does stock A has higher dividend yield than Stock B
solution
we get here Stock A rA = 6.4% + 1.1 × 6%
Stock A rA = 13.00%
and
Dividend yield of stock A = rA - g
Dividend yield of stock A = 13.00% - 7%
Dividend yield of stock A = 6%
and
for Stock B rB = 6.4%+ .9 × 6%
Stock B rB = 11.80%
and
Dividend yield of stock B = rA - g
Dividend yield of stock B = 11.80% - 7%
Dividend yield of stock B = 4.80%
so we can say Yes, Stock A has higher dividend yield
B.are usually composed of diagrams and equations
The three gorges dam is located in China
