Effective return of an investment account
Not what you're looking for?
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%?
Purchase this Solution
Solution Summary
The effective returns on an investment accounts is provided. The value of a preferred stock that pays dividends are examined.
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 ...
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Introduction to Finance
This quiz test introductory finance topics.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.