Reference no: EM132169149
1. What would the present value be of $3,000 to be received 12 years from now discounted back at 8%?
2. You are offered $1,000 today, $10,000 in 12 years, or $25,000 in 25 years. Assuming that you can earn 11 percent on your money, which offer should you choose?
3. Selma and Patty are saving for retirement in two different ways. Who will save more money for retirement at the end? Show your work. They will both receive 8% annual return on their investment over the next 35 years. Selma invests $2,000 at the end of each year only for first 10 years of the 35 year period - for a total of $20,000 saved. Patty doesn't start saving for 7 years and then saves $2,000 per year at the end of each year for 28 years -for a total of $56,000 saved.
4. You invested $100,000 5 years ago at 7.5% annual interest rate. If you invest an additional $1,500 a year, at the beginning of each year for 20 years at the same 7.5% annual rate, how much will you have 20 years from now?
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Total claims from the two full coverage policies
: What is the expected value and the standard deviation of total claims from the two full coverage policies (i.e., the sum of claims from Fred and Wilma)?
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What should the company do
: The Plant Department of the local telephone company purchased four special pole hole diggers 8 years ago for $14,000 each. They have been in constant use.
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Show a timeline of the cash flows
: Use the required return from the previous problem to calculate is the fair market value (FMT) of the stock now. Show a timeline of the cash flows.
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Is nietzsches last human being inevitable
: How should we think about morality in the modern world? To put it another way, is virtue, as Aristotle conceived it, possible?
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How much will you have 20 years from now
: If you invest an additional $1,500 a year, at the beginning of each year for 20 years at the same 7.5% annual rate, how much will you have 20 years from now?
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Does it change the way we see the world
: We live in a world saturated by technology. Our world changes rapidly, in a manner that it never did before.
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What is the price per share
: Then dividends are expected to grow at 4% per year forever. If you require a 15% return, what is the price per share?
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How does this definition of justice work when applied
: How does this definition of justice work when applied, as Socrates later does apply it, to the human soul?
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What is a portfolio beta
: Using CAPM, calculate the following Reasonable Rate of Return for Company QWE, whose Beta is .88. The Risk-free rate of return is 0.75% and Market-rate is 4.75%
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