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In this PowerPoint, You will calculate annual percentage rate (APR) and Effective Interest Rate (EAR) in MS Excel. You find the example and solution as well.
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Time value of money ppt @ bec doms
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Question 1. You can earn $40 in interest on a $1,000 deposit for 8 months. If the EAR is the same regardless of the length of the investment, how much interest will you earn on a $1,000 deposit for: a. 2 months. b. 1 year. c. 1.5 years. a. 2-months. For a 2-month, $1,000 deposit you will earn $. (Round to the nearest cent). b. 1-year. For a 1-year, $1,000 deposit you will earn $. (Round to the nearest cent). c. 1.5-years. For a 1.5-year, $1,000 deposit you will earn $. (Round to the nearest cent). Question 2. You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $3,053 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 5.798% (APR). How much do you owe on the mortgage today? The amount you owe today is $. (Round to the nearest dollar.) Question 3. Consider a project that requires an initial investment of $100,000 and will produce a single cash flow of $150,000 in 5 years. a. What is the NPV of this project if the 5-year interest rate is 5.0% (EAR)? b. What is the NPV of this project if the 5-year interest rate is 10.0% (EAR)? c. What is the highest 5-year interest rate such that this project is still profitable? a. What is the NPV of this project if the 5-year interest rate is 5.0% (EAR)? The NPV in this case (EAR equals 5.0 %) is $. (Round to the nearest dollar.) b. What is the NPV of this project if the 5-year interest rate is 10.0% (EAR)? The NPV in this case (EAR equals 10.0 %) is $. (Round to the nearest dollar.) c. What is the highest 5-year interest rate such that this project is still profitable? The highest EAR such that this project is still profitable is % (Round to two decimal places.) Question 4. In the summer of 2008, at Heathrow airport in London, Bestofthebest (BB), a private company, offered a lottery to win a Ferrari or 87,000 British pounds, equivalent at the time to about $174,000. Both the Ferrari and themoney, in 100 pound notes, were on display. If the U.K. interest rate was 4% per year, and the dollar interest rate was 2% per year (EARs), how much did it cost the company in dollars each month to keep the cash on display? That is, what was the opportunity cost of keeping it on display rather than in a bank account? (Ignore taxes.)Hint: Make sure to round all intermediate calculations to at least five decimal places. The opportunity cost of keeping it on display rather than in a bank account is £ per month. (Round to two decimal places). Question 5. A 30-year bond with a face value of $1,000 has a coupon rate of 5.50%, with semiannual payments. a. What is the coupon payment for this bond? b. Enter the cash flows for the bond on a timeline a. What is the coupon payment for this bond? The coupon pay ...
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Transformation is even harder than we thought “Only 22% of companies successfully carry out transformation. The failure rate was 78%.” “Often the business value of digital transformation is not realized. One of the most common causes is an abundance of technology projects, not a true business culture transformation” - Phil Le-Brun, Enterprise Strategist, AWS
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Dive into the world of sales excellence with 'A Day in the Life of a Salesman/Woman.' This presentation offers insights into the daily routines and strategies of dedicated sales professionals, covering everything from strategic planning to closing deals. Explore key insights and practical tips for navigating the modern marketplace while celebrating the passion and purpose of those who drive the business forward.
A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
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Corporate Social Responsibility
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
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Falcon's Invoice Discounting: Your Path to Prosperity
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Insurance IoT is a social good! Because: 🔵 Expected losses can be reduced structured programs with both real-time mitigation actions to solve a specific situation, and behavioral change mechanisms to promote safer behaviors (both in personal and commercial lines) 🔵 Rate can be matched to risks better: - Smaller and more accurate pricing clusters allow a large part of profiles to receive a lower rate - Even with the ability to price the individual probability of loss (cluster of one) the insurance foundation isn’t canceled (The risk of each policy will contribute to the expected losses of the portfolio; The premiums paid by many lucky policyholders will be used to pay the claims of the few unlucky policyholders who had an accident in a period of coverage) 🔵 IoT data can be used to increase the effectiveness and efficiency of the claim process, so improving the combined ratio ceteris paribus ⏩ Large part of the policyholders will pay less (and portfolios currently difficult to insure will become more insurable) Insurance IoT (and telematics) is not about providing a discount Insurance IoT (and telematics) is about creating economic value using the data and sharing part of this value with policyholders (and agents & brokers) An integrated holistic adoption of the IoT paradigm is a game changer for your insurance business and a social good: ◾ it allows to improve the availability and affordability of insurance coverages ◾while allowing the sector to write a profitable business Below you can enjoy a selection of best practices in both personal and commercial lines - written with some of the IoT Insurance Observatory members - that have already started to obtain results from their IoT business transformation journeys
Insurers' journeys to build a mastery in the IoT usage
Insurers' journeys to build a mastery in the IoT usage
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Covid has drastically changed the way people work. Nowadays, many individuals can work wherever and whenever they prefer. However, this shift requires a different strategy for securing your environment. By adopting the Zero Trust principles, based on the 'Never Trust, Always Verify' mindset, you can mitigate these new risks. This session will delve into the concept and provide examples of how various HCL products can fit into this framework, particularly when it comes to building a central user repository and securing your email message flow.
Ensure the security of your HCL environment by applying the Zero Trust princi...
Ensure the security of your HCL environment by applying the Zero Trust princi...
Roland Driesen
Dernier
(20)
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Organizational Transformation Lead with Culture
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A DAY IN THE LIFE OF A SALESMAN / WOMAN
A DAY IN THE LIFE OF A SALESMAN / WOMAN
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Famous Olympic Siblings from the 21st Century
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B.COM Unit – 4 ( CORPORATE SOCIAL RESPONSIBILITY ( CSR ).pptx
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Insurers' journeys to build a mastery in the IoT usage
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Time Value Of Money 04
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