Ch.5 Yield (total return) = Dollar inc + (end-beg) beg. Value Risk of Return = r= Risk Free rate + Risk Prem r=rRF+DRP+LP+MRP Risk Free Rate = rRF = r* + IP -effects of int rates on PV/Price of securities: int goes up‚ value of bonds goes down‚ stock goes down (NPV) Prices -factors that influence int rates/yield curve 1.production opportunities-return avail w/in an economy from inves. In productive asset; higher prod opp‚ higher return 2. Time preferences for consumption 3
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Management Research Paper is Business Mathematics 101 1st Tri Semester SY 2011-2012 Ms. derpina derp TABLE OF CONTENTS TITLE PAGE ACKNOWLEDGEMENT ii TOPICS Simple Discount 1 Simple Interest 2 Four types of Interest available 3 Compounded Amount and Compound Interest 4 Linear Programming Problems * Maximization 6 * Minimization 8 Forecasting by Trend Projection 10 Acknowledgement I would like to thank God for guiding and giving
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EFFECTS OF VOLATILE ORGANIC COMPOUNDS (10244818) Volatile organic compounds (VOCs) are organic chemical compounds that have high enough vapor pressures under normal conditions to significantly vaporize and enter the atmosphere. According to EPA ’s Terms of the Environment‚ a volatile organic compound is "any organic compound that participates in atmospheric photochemical reactions except those designated by EPA as having negligible photochemical reactivity." VOC can also stand for the term “volatile
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Review of the SAS Rage Compound Bow Introduction: There are a lot of bows in the market. But‚ it is true that all of them are not perfect. But‚ it is very vital to get the perfect bow for yourself‚ if you want to improve your game. Today‚ we will discuss the SAS Rage compound bow‚ which is both powerful and precise in action. The SAS Rage compound bow is a combination of power and precision. We want to clarify that this bow is not for the beginners. But definitely‚ it will be perfect for the professionals
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CHAPTER 2 How to Calculate Present Values Answers to Problem Sets 1. If the discount factor is .507‚ then .507 x 1.126 = $1. Est time: 01-05 2. DF x 139 = 125. Therefore‚ DF =125/139 = .899. Est time: 01-05 3. PV = 374/(1.09)9 = 172.20. Est time: 01-05 4. PV = 432/1.15 + 137/(1.152) + 797/(1.153) = 376 + 104 + 524 = $1‚003. Est time: 01-05 5. FV = 100 x 1.158 = $305.90. Est time: 01-05 6. NPV = −1‚548 + 138/.09 = −14.67 (cost today plus the present value of the perpetuity)
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Question 1 . 2 out of 2 points Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT? Answer Selected Answer: The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%. Correct Answer: The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%. . Question 2 . 2 out of 2 points Which of the following statements regarding a 15-year (180-month)
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excess cash. Assume that Gary invests the funds in one-year CD. a. What is the CD’s value at maturity (future value) if it pays 10 percent annual interest? FV = PV x (1+i)n FV = 50‚000 x (1+10%)1 FV = 50‚000 x 1.10 FV = $55‚000 at maturity after a year b. What will its future value be if the CD pays 5 percent interest? If it pays 15 percent interest? @ 5% per annum FV = PV x (1+i)n FV = 50‚000 x (1+5%)1 FV = 50‚000 x 1.05 FV = 52‚500 at maturity after a year @15% per annum FV = PV x (1+i)n
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paper. Jennifer McPherson Professor Fernandez English 101 April 28‚ 2013 Compound Bow 101: Which bow is right? Robin Hood splitting his opponent’s arrow is one of the most iconic movie moments in 20th century cinema. However‚ until recently‚ archery lived on as a niche sporting market usually reserved for hunters. The interest in Archery as a recreational sport has steadily risen over the last decade. According to Jim Idema‚ the release of movies
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_________ There are 14 pages in this exam. |2. |Poor Dog‚ Inc. borrowed $135‚000 from the bank today. They must repay this money over the next six years by making monthly | | |payments of $2‚215.10. What is the interest rate on the loan? Express your answer with annual compounding. | |A) |5.98% | |B) |6.63%
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of a perpetuity Appreciate the effects of compounding on interest rate quotations Understand how loans are amortized or paid off D.Chotee FTX2020F 2013 Readings Chapter 6: 6.1‚ 6.2‚ 6.3‚ 6.4 D.Chotee FTX2020F 2013 Recap: Future Values We know that FV = PV x (1+r)t (1+r)t is called the future value factor How to calculate? ◦ Calculator ◦ Tables Future value more significant over longer periods where more interest compounded. D.Chotee FTX2020F 2013 Recap: Present Values
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