Reference no: EM13907304
1. (Annuity interest rate) Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $22,590.90 that will pay them $3,500 per year for 10 years. They don’t have the slightest idea what return they would be making on their investment of $222,590.90. What rate of return would they be earning?
The annual rate of return your folks would be earning on their investment is _____% (Round to the nearest cent)
2. (loan amortization) On December 31 Beth bought a yacht for $50,000. She paid $14,000 down and agreed to pay the balance in 13 equal annual installments that include both the principal and 15 percent interest on the declining balance. How big will the annual payments?
a. On December 31 Beth bought a yacht for $50,000. She paid $14,000 down, how much does she need to borrow to purchase the yacht? $_______ On December 31 Beth bought a yacht for $50,000. She paid $14,000 down and
b. If Beth agrees to pay the loan plus 15 percent compound interest on the unpaid balance over the next 13 years in 13 equal end of the year payments what will those equal payments be? $_____ On December 31 Beth bought a yacht for $50,000. She paid $14,000 down and
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Issue preferred shares under current market conditions
: Deltona issued preferred shares four years ago at $60 per share, with a promised dividend of $5 per share. The company's tax rate is 35%, and its common stock beta is 0.80. Yields on comparable risk preferred stocks are 11%. What is the cost to Delto..
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What is the companys estimated cost of retained earnings
: Quantix Corp has shares with a beta of 1.3. The risk free rate is 3% and the expected market return is 9%. Its tax rate is 30%. The company's shares currently trade for $45 a share. What is the company's estimated cost of retained earnings?
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Recommend a strategy for communication with get well drugs
: Recommend a strategy for communication with Get Well Drugs
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Bond value and time
: Bond value and time: Constant required returns Pecos Manufacturing has just issued a 15-year, 12% coupon interest rate, $1,000-par bond that pays interest annually. The required return is currently 14%, and the company is certain it will remain at 14..
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Loan amortization-how big will the annual payments
: (loan amortization) On December 31 Beth bought a yacht for $50,000. She paid $14,000 down and agreed to pay the balance in 13 equal annual installments that include both the principal and 15 percent interest on the declining balance. How big will the..
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Explain what has happened to current assets
: Explain what has happened to current assets and long-term assets. Explain the changes in the liabilities section of the balance sheet.
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Annuity payments-what will these equal payments be
: (Annuity payments) Mr. Bill S. Preston, Esq. purchased a new house for $90,000. He paid $30,000 upfront and agreed to pay the rest over the next 20 years in 20 equal annual payments that include principal payments plus 11 percent compound interest on..
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What is the future value and present value
: What is the future value of $490 per year for 8 years compounded annually at 9 percent? What is the present value of $3,500 per year for 10 years discounted back to the present at 10 percent is $_____
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Displacements defined by complete polynomials
: Sections 3.4 and 3.5 of the textbook show that the three-noded CST shape functions permit u and v to be defined by complete linear functions in terms of a constant and x and y terms. Similarly, the six-noded LST has displacements defined by complete ..
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