Reference no: EM131379012
1: Determine the present values (PVs) if 5,000 is received in the future (i.e at the end of each indicated time period) in each of the following situations:
a. 5 percent for ten years
b. 7 percent for seven years
c. 9 percent for four years
2: Assume you are planning to invest 5,000 each year for six years and will earn 10 percent per year. Determine the future value (FV) of this annuity of your first 5,000 is invested at the end of the year.
3: Determine the present value (PV) now of an investment of 3,000 made one year from now and an additional 3,000 made two years from now if the annual discount rate is 4 percent.
4: What is the present value (PV) of a loan that calls for the payment of 500 per year for six years if the discount rate is 10 percent and the first payment will be made one year from now? How would answer change if the 500 per year from now? How would your answer change if the 500$ per year occurred for ten years?
5: Determine the annual payment on a 500,000 12 percent business loan from a commercial bank that is to be amortized over a five year period.
6: Determine the annual payment on a 15,000 loan that is to be amortized over a four year period and carries a 10 percent interest rate. Prepare a loan amortization schedule for this loan
7: Assume a bank loan requires an interest payment of $85 per year and a principal payment of 1,000$ at the end of the loan's eight years life.
a. At what amount could this loan be sold for to another bank if loans of similar quality carried an 8.5 percent interest rate? That is what would be the present value (PV) of this loan
b. Now, if interest rate on other similar quality loans are 10 percent, what would be the PV of this loan?
c. What would be the PV of the loan if the interest rate is 8 percent on similar quality loan?
|
Why is the investment appraisal process so important
: Within your report include a critical response to the following: Why is the investment appraisal process so important? The concept of relevance applicable to the determination of the project's cash flows stating all assumptions made
|
|
Could haik hold stephen liable on the notes as an indorser
: No presentment for payment was made by Haik on the due date, nor was a timely notice of dishonor given to Rowley's son, St e phen. Could Haik hold Stephen liable on the notes as an indorser ? Explain.
|
|
Do you agree with the weiners
: The Wei n ers claimed that, because they are secondarily liable, the bank may not pro ceed against them individually until after presentment, notice of dishonor, and protest have occurred. Do you agree with the Weiners ? Explain.
|
|
Was craig a holder in due course of the note
: Prior to doing so, however, she negotiated the note to Craig, who pu r chased it at a discount with notice that it was in default. Was Craig a holder in due course of the note? Why or why not?
|
|
What is the present value of a loan that calls for payment
: What is the present value (PV) of a loan that calls for the payment of 500 per year for six years if the discount rate is 10 percent and the first payment will be made one year from now?
|
|
Was joyce a holder in due course of the check
: Joyce received the check, indorsed it, and mailed it to her bank in Baltimore with instructions to use it to establish a certificate of deposit in joint tenancy with her father. Was Joyce a holder in due course of the check? Explain.
|
|
Choose a health care topic
: Choose a health care topic for which a policy might be created. Be sure to look ahead and choose a policy topic that will be suitable for both parts of this assignment, due in Weeks Three, Four, and Five.
|
|
Relationship between the bank and its depositors
: Is Jeremy Bentham'sgreatest good principle really an effective way to create legal principles or is it simply a way for lawmakers to rationalize self-dealing? Explain.
|
|
Explore the website for the quality and safety education
: Explore the website for the Quality and Safety Education for Nurses (QSEN) initiative - How can the QSEN competencies for nurses be implemented into your workplace or professional nursing setting?
|