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Question
The future value of $1,000 compounded annually for 8 years at 12% may be calculated with the following formula:FV = $1,000 * (1 + 12%)8
If the same $1,000 was compounded quarterly, what formula would you use to calculate the FV? (C)
(a) FV = $1,000 * (1 + 3%)8
(b) FV = $1,000 * (1 + 12%)32
(c) FV = $1,000 * (1 + 3%)32
(d) FV = $1,000 * (1 + 12%)2
Answer
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Related questions
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A REIT has an NOI of $15 as share and currently pays a dividend of $10 a share. The dividend is projected to increase by 4percent by next year and continue to increase by 4percent per year thereafter. Assuming that the blended cap rate is 9.75percent and the required rate of return is 10.5percent, what value would the Gordon Dividend Discount Model provide?
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