### What is the present value of a security

Assignment Help Finance Basics
##### Reference no: EM131061194

1. If you deposit \$5,000 in a bank account that pays 8% interest annually, how much will your account balance be in 5 years?

2. What is the present value of a security that will pay \$50,000 in 10 years if securities of equal risk pay 6%?

3. You are planning to retire in 25 years and currently have \$250,000 in your retirement account. You think you will need \$1,000,000 at retirement. What interest rate must you earn to achieve that goal, assuming no additional amounts are added to the savings account?

4. If you deposit money today in an account that pays 7% annual interest, how long will it take you to double your money?

5. You have \$50,000 in a brokerage account, and you plan to deposit an additional \$8,000 at the end of ever future year until your account total reaches \$300,000. You expect to earn 10% annually on the account. How many years will it take you to reach your goal?

6. What is the future value of a 7%, 5-year ordinary annuity that pays \$500 each year? If this was an annuity due, what would its future amount be?

7. You won the lottery, and they agree to give you \$50,000 per year at the end of each year for the next 25 years, or you can take a lump sum today. If the lottery uses a discount rate of 6%, what would be the lump sum that you could take today?

8. You just borrowed \$250,000 from a bank to purchase a new home and have to repay the bank in equal payments at the end of each year for the next 30 years. How much will the annual payments be if the loan interest rate is 5%?

9. Find how much \$1,000 will under each of the following conditions:

12% compounded annually for 5 years

12% compounded semiannually for 5 years

12% compounded quarterly for 5 years

#### Estimate of the current stock price

There are 5.5 million shares of stock outstanding. Investors require a return of 13 percent and the corporate tax rate is 40 percent. What is your estimate of the current st

#### Ratio of exchange in market price for this transaction

Phylum Plants' stock is currently trading at a price of \$55 per share. The company is considering the acquisition of Taxonomy Central, whose stock is currently trading at \$2

#### What are franchise agreements

Summarize the following acts: sections 1 and 2 of the Sherman Act; the Clayton Act and the relationship to mergers; and the Robinson-Patman Act on price discrimination. What

#### Work at the springfield dmv

Selma and Patty Bouvier are twins and both work at the Springfield DMV.  Selma and Patty Bouvier decide to save for retirement, which is 35 years away. They'll both receive

#### Calculate the venture''s net profit margin.

A venture recorded revenues of \$1 million last year and a net profit of \$100,000. Total assets were \$800,000 at the end of last year. A. Calculate the venture's net profit ma

#### Health system has forecast net patient revenue in the first

Health system has forecast net patient revenue in the first 3 months of the year as follows (figures in millions): January, \$200; February, \$140; March, \$200. 70% of services

#### Use deriva gem to calculate the value

Format requirement: Please submit your assignment in PDF or WORD format online. The whole assignment must not exceed 10 pages in length, with 1.5 line spacing, 12-point Times

#### What is the dividend yield and capital gains yield

Stock Z is a growth stock that will increase its dividend by 20% for the next wo years and then maintain a constant 12% growth rate thereafter. What is the dividend yield an

### Write a Review

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!