Find how much money needs to be deposited now into an account to obtain $7,300 (Future Value) in 6 years if the interest rate is 2.5% per year compounded monthly (12 times per year).
The final amount is $
Round your answer to 2 decimal places

x=  $6,284.15

Step-by-step explanation:

7300 = x(1 + .025/12)^72

x =

x=  $6,284.15  

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%

80

step-by-step explanation: