Chapter 5 : Interet rates Page161 Interest rate quotes and adjustments 5-1. Your bank is offering you an account that will pay 20% interest in total for a two-year deposit. Determine the equivalent discount rate for a period length of a. Six months. b. One year. c. One month. a. Since 6 months is [pic] of 2 years‚ using our rule [pic] So the equivalent 6 month rate is 4.66%. b. Since one year is half of 2 years [pic] So the equivalent 1 year rate is 9.54%. c. Since
Premium Compound interest Time value of money Debt
etc. 5) SECURITIES All types including Shares‚ Debentures‚ N.I.T. Units‚ ICP Mutual Funds‚ Defence Saving‚ Special Saving Certificates and account thereof Prize Bonds‚ Government Securities etc.‚ 6) FUNDS Provident Fund‚ Gratuity‚ Annuity‚ etc‚ LOANS given to other and ALL OTHER INVESTMENTS etc. Place Deponent(s) Dated: WITNESSES: We‚ 1) Resident of 2) Resident of solemnly declare and affirm that we know the above deponent(s) and
Premium Bond Mutual fund Investment
Chapter 3: Survival Distributions and Life Tables Distribution function of X: Force of mortality µ(x): fX (x) 1 − FX (x) s (x) = − s(x) FX (x) = Pr(X ≤ x) µ(x) = Survival function s(x): s(x) = 1 − FX (x) Relations between survival functions and force of mortality: x Probability of death between age x and age y: Pr(x < X ≤ z) = FX (z) − FX (x) s(x) = exp − = s(x) − s(z) Pr(x < X ≤ z|X > x) = = µ(y)dy x FX (z) − FX (x) 1 − FX (x) s(x) − s(z) s(x) Derivatives: d t qx dt d t px
Premium Poisson distribution Random variable Probability theory
WhAT Is rIsk ManageMent AnD hOW DOEs IT Apply TO REAl EsTATE? fall 2008 By Martha S. Peyton‚ Ph.D. and Steven Bardzik‚ Ph.D. IntroductIon The process of investing is basically all about weighing potential return and the risk associated with it. That simple definition refers to investing in financial instruments such as stocks and bonds as well as hard assets such as real estate‚ commodities‚ rare works of art and vintage cars. From this point of view‚ investors are and have always been “risk
Premium Risk management Operational risk Risk
rate for all transactions a. Borrowed $103‚000 for nine years. Will pay $9‚270 interest at the end of each year and repay the $103‚000 at the end of the 9th year. In transaction (a)‚ determine the present value of the debt. 1. We find PV of ANnuity of $1 for 9 Yrs at 9% = 5.9952 PV of $1 for 9Yrs @9% = 0.4604 So PV of debt = 9270*5.9952 + 103000*0.4604 = $1‚02‚997 b. Established a plant addition fund of $520‚000 to be available at the end of year 8. A single sum that will grow to $520‚000
Premium Money
CHAPTER 8 MAKING CAPITAL INVESTMENT DECISIONS Answers to Concept Questions 1. In this context‚ an opportunity cost refers to the value of an asset or other input that will be used in a project. The relevant cost is what the asset or input is actually worth today‚ not‚ for example‚ what it cost to acquire. 2. a. Yes‚ the reduction in the sales of the company’s other products‚ referred to as erosion‚ should be treated as an incremental cash flow. These lost sales are included because
Premium Depreciation Cash flow Net present value
Macmillan and Grunski Consulting 73 DISCOUNTED CASH FLOW ANALYSIS Directed Sandra Macmillan was born and raised in Orlando‚ Florida‚ and joined the Peace Corps after receiving her bachelor’s degree in Economics. While in the Peace Corps she met Sam Soule‚ whose uncle ran Bolton‚ Soule‚ and Martinez Inc.‚ a regional brokerage firm in Seattle. He mentioned that his uncle was always interested in hiring competent and hard-working people with broad vision. He suggested that she contact his uncle
Premium Compound interest
4. Explain in words why a dollar has different values dependent on point in time received‚ and how “present valuing” or “future valuing” cash-flows corrects for these differences. Also‚ look at the mathematics of the “annuity” versus the “annuity due”‚ and explain why the annuity is 1+r more valuable. Finally‚ create an amortization table using your calculator (like in the notes) and explain why the amount of interest paid is decreasing‚ and the principle paid is increasing. 5. Explain what
Premium Monetary policy Federal Reserve System Economics
Contributions of Property Additional/Excess Contributions Transfers: Options available: 1. Transferring retiring allowances (severance pay) to an RRSP 2. Transfer of Registered Pension Plan (RPP) to an RRSP 3. Commutation Payment from RRSP 4. Annuities have two types RRSP Withdrawals: • Prior to maturity or at maturity • RRIF • Partial withdrawals • Home Buyers’ Plan • Lifelong Learning Plan Death of an RRSP Annuitant: • Matured RRSP • Unmatured RRSP Rules and Schemes to be aware
Premium Investment Tax Finance
Act 5: Scene 1 GRAVEDIGGER-She killed herself‚ are they really going to give her a Christian funeral? OTHER- Yes‚ so finish up that grave. The coroner examined her case and decided it should be a Christian funeral. GRAVEDIGGER- But how? Unless she drowned herself in defense OTHER- They think she did. GRAVEDIGGER-Psst yeah sounds like self-offense to me.. I think that if she knew she was drowning herself that’s an act. Acts have three sides to it: to do‚ to act‚ and to preform
Free Hamlet Characters in Hamlet