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    Effective return of an investment account

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    What is the effective return of an investment account that pays a 9.9 APR compounded daily (for 365 days)?

    Okay let's say the annual interest rate is 10%.
    a.) What would be the present value of a 5-year ordinary annuity with annual payments of $200?
    b.)What is the present value if it is a 5-year annuity due (all the rest is the same)?

    What is the value of a preferred stock that pays a $1 dividend if the required rate of return for this stock is 4%?

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    https://brainmass.com/business/annuity/effective-return-investment-account-35368

    Solution Preview

    What is the effective return of an investment account that pays a 9.9 APR compounded daily (for 365 days)?
    payment = 9.9% / 365 = 0.00027
    PV = -1
    Number of periods = 365
    Then by a financial calculator, we can compute:
    Interest ...

    Solution Summary

    The effective returns on an investment accounts is provided. The value of a preferred stock that pays dividends are examined.

    $2.19

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