User Account

All Pages

How much should the donald be worth

Assignment Help Finance Basics
Reference no: EM13854621

Instructions: Please work each problem to the best of your ability. Show all work; credit will not be awarded if I cannot easily see how you solved the problem. Select the best answer for the multiple choice questions.

1. I am planning to invest $800 at the end of each month to my daughter's college (starting at the end of this month) fund that earns a 10% annual
rate of return compounded monthly. Assuming that she starts college
in exactly 5 years and will spend 4 years in college, how much tuition
can she afford to pay at the beginning of each of her 4 years in college? (Round to nearest dollar)

a. $15,260
b. $19,003 0. $19,743
d. $13,637
a. None of the above. Correct answer

2. Donald Trump is wealthy largely because his father was wealthy.

Assume that the Donald inherited $50 million in 1980 (exactly 35

years ago) and invested his inheritance with Warren Buffet's Berkshire-Hathaway. If Berkshire-Hathaway's average annual return
over this period was about 23%, how much should the Donald be
worth today?

a. A lot

b $50.00 billion a. $ 93.053 billion al $26.61 billion

a. None of the above. Correct answer

3. Crazy Cliff's Car Coral has offered to sell you a used Mustang for $15,000. You are required to make payments of $250 (first payment due next week) for 3 years? What is the annual percenatage rate (APR) on this loan?
a. 1.13%
b. 58.54%
c. 78.23%
d. 117.21%
a. None of the above. Correct answer

4. I have been considering refinancing my house. To do so, I will need to borrow $250,000. The loan period is 30 years and payments are made monthly. Several months ago I could have gotten a loan at 3% APR, buttoday the APR is 5.25%. How much additional interest  ill I pay over the  life of the loan because of the interest rate increase?

a. $303,434
b. $63,302 a. 129,444 d. 192,746 a.

Reference no: EM13854621

Questions Cloud

Contrast role of promotion in an international public accoun : consider pricing from a strategic rather than a tactical perspective
Demonstrate your knowledge of finance theory : To demonstrate your knowledge of finance theory, be sure to include your personal thoughts on the subject.
How successful was the ipo in raising capital? : How successful was the IPO in raising capital?
Distinguish between managerial and financial accounting : Distinguish between managerial and financial accounting as to (a) primary users of reports, (b) types and frequency of reports, and purpose of reports. Linda Olsen is studying for the next accounting midterm examination. Summarize for Linda what sh..
How much should the donald be worth : how much should the Donald be worth
Evaluating a bond portfolio managers performance : What factors are considered when evaluating a bond portfolio manager's performance? Provide a link (other than Investopedia, Wikipedia, or similar sites) to an article that explains bond portfolio performance evaluation.
Necessary adjusting journal entry : An asset that cost $50,000 was purchased on January 1.  The asset has an estimated useful life of three years and an estimated salvage value of $3,200.  Prepare the necessary adjusting journal entry for the end of the year.
Explain and compare macaulay and modified duration : Explain and compare Macaulay and modified duration. Provide a link (other than Investopedia, Wikipedia, or similar sites) to an article explaining how bond portfolio managers utilize duration.
Discuss how an organisational culture can formed : Essay - Organisational culture is an important driver of the success of a business. Discuss how an organisational culture can formed

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the current bond price

App Store Co. issued 15-year bonds one year ago at a coupon rate of 6.6 percent. The bonds make semiannual payments.

  Crystal glass recently paid 360 as an annual dividend

crystal glass recently paid 3.60 as an annual dividend. future dividends are projected at 3.80 4.10 and 4.25 over the

  Describe the manufacturing process

Choose a product to manufacture and describe the manufacturing process. Prepare the following budgets for 1 quarter, broken down monthly, regarding your chosen item:

  Calculate minimum price per unit

Assume Educate Comp knows its fixed costs are $100,000, its variable expenses are $500 per copy of Alge Comp, and they must to sell 15000 copies of Alge Comp to break even 1st year.

  Npv on project-riggs corp

Riggs Corp. management is planning to spend $650,000 on a new marketing campaign. They believe that this action will result in additional cash flows of $286,333 over the next three years. If the discount rate is 17.5 percent, what is the NPV on th..

  Compute the conversion premium

At what price does the common stock need to sell for the conversion value to be equal to the current bond price? Stock price = $

  What is the annual percentage increase in the winners prize

In 1985 U.S. Open winner won $150. In 2009, the winner won $1,350,000. What is the annual percentage increase in the winners prize money over this time period. If the winners prize increases at the same rate, what will it be in 2045?

  Determine the required amount to pay expenses

You will require to pay for your son's private school tuition [1st grade through 12th grade] a sum of $8,000 per year for Years 1 through 6, $10,000 every year for years 7 through 12.

  Calculate the standard deviation of expected returns

Calculate the standard deviation of expected returns, ?X, for Stock X (?Y = 19.83%.) Round your answer to two decimal places.

  The effective annual opportunity cost of paying monthly

Mooncorp Insurance has quoted you an annual premium to insure your car of $2400.

  Reinegar corporations has just issued a 25 year par bond

problem 1bond abond bunitmaturity47yearscoupon56annualprice101.79102.85-you know for certain that the 3 year rate in 4

  What price should you charge

Assume the demand curve has a constant slope.  If you had sufficient inventory, how many units would you sell at $90? Assume your marginal cost is $44 per unit.   Given only this and the above information, what price should you charge? Explain your r..

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd