An investor receives $1,100 in one year in return for an investment of $1,000 now. Calculate the
Question:
An investor receives $1,100 in one year in return for an investment of $1,000 now. Calculate the percentage return per annum with
a) Annual compounding,
b) Semiannual compounding,
c) Monthly compounding
d) Continuous compounding.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
a With annual compounding the return is or 10 per annum b With semiannual compounding t...View the full answer
Answered By
Pushpinder Singh
Currently, I am PhD scholar with Indian Statistical problem, working in applied statistics and real life data problems. I have done several projects in Statistics especially Time Series data analysis, Regression Techniques.
I am Master in Statistics from Indian Institute of Technology, Kanpur.
I have been teaching students for various University entrance exams and passing grades in Graduation and Post-Graduation.I have expertise in solving problems in Statistics for more than 2 years now.I am a subject expert in Statistics with Assignmentpedia.com.
4.40+
3+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Corporate Finance questions
-
Investor As personal tax rate is 25 percent while Investor Bs is 29 percent. Investor A owns 100 shares of SNS Company and receives an annual dividend of $1.60 per share. Investor B owns 100 shares...
-
An investor bought 100 shares of Venus Corporation common stock one year ago for $40 per share. She just sold the shares for $44 each, and during the year, she received four quarterly dividend checks...
-
1. Which of the following statements is false? a. A spot price is a price today for immediate delivery. b. If a Canadian firm has to pay U.S. dollars in the future, it worries about the potential...
-
If the molecular weight of air is 28.9, what is the density of air at atmospheric pressure and a temperature of 328.2 K? 1 atm = 1.013 x 10 5 N/m, the mass of a proton is 1.67262 x 10 -27 kg,...
-
What is return on invested capital (ROIC)? Why is the spread between ROIC and WACC so important? MINI CASE You have been hired as a consultant to Kulpa Fishing Supplies (KFS), a company that is...
-
A circular current loop of radius R carrying a current I is centered at the origin with its axis along the x axis. Its current is such that it produces a magnetic field in the positive x direction....
-
Use a stem-and-leaf plot to display the data set. Describe any patterns. Use the data set, which represents the pollution indices for 24 U.S. cities. 22 41 46 50 38 57 65 49 41 23 38 65 28 36 63 54...
-
H.J. Heinz Company uses standards to control its materials costs. Assume that a batch of ketchup (6,000 pounds) has the following standards: The actual materials in a batch may vary from the standard...
-
As a foreign exchange trader at a leading bank in Kenya, you have a customer who would like spot and 30-day forward AS/Yen quotes. Current market rates are: S/KES AS/KES Spot 150.25-34 30-day 30-15...
-
A potential buyer has visited a brokerage to talk to an agent about the pros and cons of buying a home vs. renting one. The agent asks the potential buyer questions about the buyer's income, price...
-
Verify that DerivaGem agrees with the price of the bond in Section 4.6. Test how well DV01 predicts the effect of a one-basis point increase in all rates. Estimate the duration of the bond from DV01....
-
Suppose that zero interest rates with continuous compounding are as follows: Maturity (months) Rate (% per annum) 3.........................................................3.0...
-
Why cant the Williamson ether synthesis be used to prepare diphenyl ether? Diphenyl ether
-
You and a friend are bowling. She rolls her \(4.5-\mathrm{kg}\) ball at \(10 \mathrm{~m} / \mathrm{s}\); you roll your ball at \(8.0 \mathrm{~m} / \mathrm{s}\). What inertia must your ball have if...
-
Carts A and B collide on a low-friction track. Rank, from largest to smallest, the following four collisions according to the magnitude of the change in the momentum of cart B, which has twice the...
-
The cost curve for producing widgets passes through the following points and is piecewise linear in between. a. What is the fixed cost of producing 600 widgets? b. What is the variable cost of...
-
A \(400-\mathrm{kg}\) shipboard cannon fires a \(20-\mathrm{kg}\) ball at \(60 \mathrm{~m} / \mathrm{s}\). The cannon's resulting recoil speed across the deck is regarded as excessive. How much...
-
In a football game, a \(95-\mathrm{kg}\) player carrying the ball can run the \(50-\mathrm{m}\) dash in \(5.5 \mathrm{~s}\). Two opponents are available to stop him with a head-on tackle. One...
-
Explain the difference between the observed and expected frequencies for a goodness-of-fit test.
-
Software Solution is family-owned business that has been in operation for more than 15 year. The board of directors is comprised of mainly family members, plus a few professionals such as an...
-
A fund manager has a portfolio worth $50 million with a beta of 0.87. The manager is concerned about the performance of the market over the next two months and plans to use three-month futures...
-
A trader owns 55,000 units of a particular asset and decides to hedge the value of her position with futures contracts on another related asset. Each futures contract is on 5,000 units. The spot...
-
A three-year bond provides a coupon of 8% semiannually and has a cash price of 104. What is the bonds yield?
-
Fixed-interest fund managers measure convexity in conjunction with duration to better measure their exposures to interest rate risk. Discuss the concept of convexity within the context of interest...
-
A friend owes you $500 in 1 year from now, and then $1000 2 years from now. Both loans are at 5%. If you want to replace both of these loans with ONE PAYMENT NOW, how much would your friend give you ?
-
If the amount of retained earnings at the beginning of the year was $ 3 0 , 0 0 0 , and $ 1 2 , 0 0 0 in dividends is paid during the year, calculate net income for the year.
Study smarter with the SolutionInn App