Reference no: EM131221369
Problem 1
You just inherited some money, and a broker offers to sell you an annuity that pays $5,000 at the end of each year for 20 years. You could earn 5% on your money in other investments with equal risk. What is the most you should pay for the annuity?
Problem 2
a) Compute the future value of a 9%, 5-year ordinary annuity that pays $600 each year.
b) Assume that payments are made at the beginning of the year. Find the future value using the given information from part (a).
Problem 3
You want to quit your job and go back to school for a law degree 4 years from now, and you plan to save $3,500 per year, beginning immediately. You will make 4 deposits in an account that pays 5.7% interest. Under these assumptions, how much will you have 4 years from today?
Problem 4
The APY for a savings account with a stated APR of 5% compounded daily is closest to ________.
A) 5.64%
B) 6.15%
C) 5.13%
D) 6.66%
Problem 5
What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000 at the end of Year 4 if the interest rate is 5%?
Problem 6
Ally wishes to leave a provision in her will that $7000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 6%?
Problem 7
A bank offers a loan that will requires you to pay 7% interest compounded monthly. Which of the following is closest to the APY charged by the bank?
Problem 8
What is the present value of the following cash flow stream at a rate of 12.0%?
|
Years:
|
0
|
1
|
2
|
3
|
4
|
|
CFs:
|
$ 0
|
$ 1,500
|
$ 3,000
|
$ 4,500
|
$ 6,00
|
Problem 9
A bank offers a home buyer a 20-year loan at 8% per year. If the home buyer borrows $130,000 from the bank, how much must be repaid every year?
Problem 10
Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of $5000 per year. If he can get a four-year loan with an interest rate of 7.9%, what is the maximum price he can pay for the car?
|
Supply and demand
: Please write a post of at least two paragraphs. In the first paragraph tell us how you would know that a market was at equilibrium in terms of price, supply and demand.
|
|
Transactions for income tax purposes
: Mark and Lisa were divorced in 2014. In 2015, Mark has custody of their children, but Lisa provides nearly all of their support. Who is entitled to claim the children as dependents? How should Hernando treat these transactions for income tax purposes..
|
|
What will the annual payment be
: You have borrowed $25,000 at an interest rate of 16%. Equal payments will be made over a three-year period. (The first payment will be made at the end of the first year.) What will the annual payment be, and what will the interest payment be for t..
|
|
Exclusions from gross income
: Which of the following items are exclusions from gross income? Alimony payments received. Damages award received by the taxpayer for personal physical injury—none were for punitive damages. A new golf cart won in a church raffle. Amount collected on ..
|
|
What is the maximum price he can pay for the car
: Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of $5000 per year. If he can get a four-year loan with an interest rate of 7.9%, what is the maximum price he can pay for the car?
|
|
Define referential integrity actions
: Define referential integrity actions (such as ON UPDATE CASCADE) for the COMPUTER-to-COMPUTER_ASSIGNMENT relationship only. Explain the need for these actions.
|
|
Darcys law and its applications for a reservoir engineer
: write a one page essay about Darcy's law and its applications for a reservoir engineer and write down the formula showing each variable and what does it refer to.
|
|
Items are inclusions in gross income
: Which of the following items are inclusions in gross income? During the year, stock the taxpayer purchased as an investment doubled in value. Amount an off-duty motorcycle police officer received for escorting a funeral procession. While his mother w..
|
|
Why incentive plans cannot work
: Do incentive plans work? What has been your personal experience with organizational approaches to compensation and performance appraisals?
|