Reference no: EM131255723
Assignment
1.
A) What is the future value in 9 years of $6809 invested in an account with a stated annual interest rate of 7.3 %, compounded annually?
B) What is the future value in 9 years of $6809 invested in an account with a stated annual interest rate of 7.3 %, compounded semi-annually?
C) What is the future value in 9 years of $6809 invested in an account with a stated annual interest rate of 7.3 %, compounded monthly?
D) What is the future value in 9 years of $6809 invested in an account with a stated annual interest rate of 7.3 %, compounded continuously?
Future Value A
Future Value B
Future Value C
Future Value D
2. Investment X offers to pay you $2859 per year for 19 years, whereas Investment Y offers to pay you $7624 per year for 7 years. Calculate the present value for Investments X and Y if the discount rate is 7 %.
Present Value X
Present Value Y
3. First National Bank charges 11.3 % compounded monthly on its business loans. First United Bank charges 11.8 % compounded semiannually. Calculate the EAR for First National Bank and First United Bank.
EAR National
EAR United
4. One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $592 per month. You will charge 1.3 % per month interest on the overdue balance. If the current balance is $12883, how many years will it take for the account to be paid off?
Years
5.
A prestigious investment bank has designed a new security that pays a quarterly dividend of $3.23 in perpetuity.
The first dividend occurs one quarter from today. What is the price of the security if the stated annual interest rate is 6.9 %, compounded quarterly?
Price
6. Your firm has been working on an advanced technology. This technology will be available in the near term. The firm anticipates the first annual cash flow from the technology to be $138978 received three years from today.
Subsequent annual cash flows will grow at 2.6 % in perpetuity. What is the present value of the technology if the discount rate is 11.7 %?
Technology Value
7. You are planning to save for retirement over the next 36 years. To do this, you will invest $616 per month in a stock account and $190 per month in a bond account. The return of the stock account is expected to be 12 %, and the bond account will pay 3 %. When you retire, you will combine your money into an account with a return of 3 %.
How much will be in the stock account at retirement?
How much will be in the bond account at retirement?
How much can you withdraw each month from your account assuming a 25-year withdrawal period?
Stock Account Value
Bond Account Value
Retirement Withdrawal
|
Assume that art is covered by a pension plan
: Art and Cathy brown are married and nave one child. Art is putting together some figures so that he can prepare the Brown's joint 2014 tax return. He can claim three personal exemptions (including himself). Given this information, how much taxable in..
|
|
Commitment to quality and the development
: Explain the concept of quality function deployment. Link your answer to the leadership commitment to quality and the development of a robust and effective quality strategy. This answer must be in your own words-significant cut and paste from the t..
|
|
Forecast worldwide demand for tea bag machines
: How would you forecast worldwide demand for tea bag machines? - How would you organise the internal database with the customers' responses and the feedback of the questionnaire results to the customers.
|
|
Concepts of statistical process control
: Explain the concept of the Taguchi loss function. Link your answer to the concepts of statistical process control. This answer must be in your own words-significant cut and paste from the text or other sources is not acceptable.
|
|
Calculate the present value for investments x and y
: Investment X offers to pay you $2859 per year for 19 years, whereas Investment Y offers to pay you $7624 per year for 7 years. Calculate the present value for Investments X and Y if the discount rate is 7 %.
|
|
Failure cost as internal versus external
: What criterion is used to classify a failure cost as internal versus external? Give three examples of an internal failure cost and three examples of an external failure cost.
|
|
What are the desirable characteristics of a brazing flux
: What are the functions served by the bit of a soldering iron in hand soldering?
|
|
Identify six attributes of quality information
: Identify six attributes of quality information. - How is data different from information? Information from knowledge?
|
|
Difference between an intranet and an extranet
: What is the difference between an intranet and an extranet? - What is m-commerce? Give two examples of the use of m-commerce.
|