Question: This was the answer I received for this problem. However, it reviewing my homework, it seems like they should have been solved this way, can

This was the answer I received for this problem. However, it reviewing my homework, it seems like they should have been solved this way, can you explain why?

Part a.

Why not this?

PV = 1/.025 (1-1/1.025^20) + (100/1.025^20) = 76.61626

Part b.

66.11178 = 100/ (1+Y)^6

y = (100/66.11178) ^ 1/6-1

y= 0.0714505

or 7.1405 annual rate compounded semi annually

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Project title: Design and build a database for Aka Hospital. Project description Aka Hospital, a leading healthcare provider, aims to streamline patient information management and improve overall...

Describe the research question studied in the article. What are the hypothesis for the study? If the researchers have not stated hypotheses, what will be your hypothesis for the study? List and...

Discuss the sampling method, sample characteristics, and measures used. Explain in detail the study design and methodology employed. J Child Fam Stud (2018) 27:602-614 DOI 10.1007/s10826-017-0892-4...

I hope you can answer this question and find the reference below the question. Thank you Topic: Conducting personal job interviews using the STAR model 1- Design a two-hour training work plan for 10...

Topic: Conducting personal job interviews using the star model 1-Design a two-hour training work plan for 10 trainees 2-Determine the quality of trainees 3-Use the training design model Formulate one...

Through the use of strategic alternatives, companies may compete in a marketplace, achieve its vision, or if no vision has been articulated, decide where it might go and what it might achieve....

Due to the changing environment and external triggers, contingency planning is necessary. What qualities make a future issue a ?trigger?? Consider you are on the strategic planning team for a soft...

Page 562 Writing Proposals and Progress Reports Chapter Outline Writing Proposals Proposal Questions Proposal Style Proposals for Class Research Projects Proposals for Action Sales Proposals Business...

please help me with this assignment I need to identify the issue, specify the IDEA principle it pertains to, state the rule, and provide a brief conclusion. STATE OF MAINE SPECIAL EDUCATION DUE...

1. How does Heilbroner define economics? 2. What are the two aspects of the economic problem, briefly explain each. 3. Define each type of economy: a. Traditional b. Command c. Market 1 / 12 - 72% +...

Executive Memorandum (EM) Guidelines Prepare an executive summary of the papers that is only one page long.The assignment should be typed in Word, font size 11 double spaced, with minimum margins of...

4. Which of the following are valid? (a) Inu - 2 = In - e (b) 3+ Inv=In UV (c) Inu+Inv-In w = in- (d) In 3+In 5 = In 8 1

Below is a list of accounts and balances for Sandals Inc. for the year ending November 30, 2020. All balances are in thousands of dollars. Sandals Inc. follows APSE. Assume a tax rate of 20%. Account...

Question 4 9 2 pts The mortgage backed securities are forms a broader kind of security called a ( n ) collateralized debt obligation "junk" bond internal priority obligation prioritized financial...

Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10% ; Roth, 40% ; and Lowe, 50% ). The partners decide to liquidate the partnership. Immediately...