26 finance questions | Business & Finance homework help
1. If the one-year blur scold is 5% (R1) (APR) and Two-year blur scold is 5.5% (R2) (APR) consider the one-year scold one-year (Forward scold)(FR1) from today using spotless forebodeations speculation.
2 Given the forthcoming table:
Type of Security Cause Rate 5-Year Treasury Note 5% 5-Year Corposcold Bond (High condition) 6% 5-Year Corposcold Bond (Low condition) 8%
Calculate the failure imperil encouragement (DRP) on the Corposcold bonds.
3 Offer Compute Years Cause Scold Coming Value
$570 15 10% $8,922 9 18% $61,133 3 12% $219,850 10 4%
Given the aloft axioms, consider the coming compute in each subject. (Using the formula and besides a financial calculator)
4 Coming Compute Years Cause Scold Offer Value
$349 10 6% $5,227 20 2% $48,950 12 12% $612,511 7 10%
Given the aloft axioms, consider the offer compute in each subject. (Using the formula and besides a financial calculator).
5 Given the forthcoming axioms, unfold for the cause scold in each subject. (Use a financial calculator) Offer Compute Years Coming Compute Cause Rate
$475 4 $615 $7,350 7 $18,350 $27,175 11 $65,000 $93,412 19 $200,000
6 You forebode your newly born offshoot to follow school in 18 years. You feel $12,000 to set away for that point. You besides forebode that the whole consume of school direction to be $100,000 by that span.
Calculate the cause scold at which you feel to endow today to conclude your design.
7 How covet does it captivate to wrap your coin at 9 % cause scold?
8 How covet does it captivate to triple your coin at 9 % cause scold?
9 Great Lakes Inc. has an unfunded pension burden of $300 favorite that must be compensated in 18 years. The financial analyst absences to remittance this burden end to offer for valuation points. The mismisappropriate remittance scold is 8%.
What is the offer compute of this burden?
10 Highcapricious Inc. is because an endowment contrivance delay the forthcoming currency flows:
YEAR Currency Flow
1 $300 2 $400 3 $600 4 $900
If the remittance scold is 10% , consider the offer compute of these currency flows. What conclude be the offer compute if the remittance scold is progressive to 15% ?
11 Solar capricious Inc is because a contrivance delay the forthcoming currency flows :
YEAR Currency Flow
1 $800 2 $700 3 $600 4 $500
Calculate the coming compute of these currency flows in year 4., if the cause scold is 12%. What conclude be the offer compute if the cause scold is progressive to 16%?
12 Newsys Inc. conclude genescold $30,000 per year for the proximate five years from a new axiomsbase regularity. The regularity requires an endowment of 120,000 today. If the convenience consume of investments is 6%, is the regularity estimate installing?
13 An endowment pays $2,000 per year for 10 years. The payments happen at the end of each year. The required scold of repay in 12%. Consider the compute of the endowment today. What conclude be its compute if the payments happenred at the threshold of each year?
14 If Mr. Hobbit deposits $2,000 at the end of each year for the proximate 10 years at an cause scold of 12% per year, how greatly conclude be feel amassd? How greatly conclude he feel amassd if he deposited the correspondentitys at the threshold of each year?
15 Find the offer compute of a perennity that pays $2,000 per year and the cause scold is 10%
16 Show, using an sample, that the offer compute of an annuity is the dissonance among the offer compute of two perpetuities, one starting one year from today and the other starting N+1 years from today.
17 Given the forthcoming axioms, consider the cogent annual scold (EAR) in each subject. Sated scold (Nominal APR) Frequency of Compounding Cogent scold (EAR)
10% Monthly 12% Quarterly 8% Daily(use 365 days)
18 Given the forthcoming axioms, consider the orderly (Nominal) annual scold (APR) in each subject Sated scold (Nominal APR) Frequency of Compounding Cogent scold (EAR)
Monthly 12% Quarterly 6 % Daily (use 365 days) 15%
19 Big Bank Corp. absences to win an cogent cause scold of 9% (EAR) on its consumer advances. It uses monthly compounding on consumer advances. What should be the orderly (Nominal) scold (APR) on these advances?
20 Consider the coming compute of $1,000 in 10 years stately an cause scold of 12% (APR) compounded quarterly. Besides consider the cogent scold (EAR) on the endowment.
21 You absence to buy a new sports coupe and insufficiency $30,000 advance and the finance troop affiliated delay the dealership is subsidy 6.9% APR advance and the advance calls for 60 monthly payments. What conclude be your monthly payments and besides the cogent cause scold on the advance?
22 Mr. Wise is minor in 25 years. He would love to amass $1,000,000 for his retreat investment by then. He plans create resembling monthly payments to conclude his design. If the scold of repay on the retreat investment is 12%, what conclude his monthly payments be?
23 Mr. Wise creates payments (as per tenor 33) for the highest ten years and stops making payments succeedingwards due singular tenors. How greatly would he feel amassd at the span of retreat stately that the amassd correspondentity peaceful wins cause at the orderly scold on a monthly foundation?
24 Prepare an amortization catalogue for a three year advance of $10,000. The cause scold is 9% per year, and the advance calls for resembling annual payments. How greatly cause is compensated balance the vitality of the advance? (Use a financial calculator) (Also, unravel the amortization catalogue using Excel overlay prevarication)
25 Mr. Spend has amassd belief card advances of $15,000 and is decision it unmanageable to create payments. His persomal bank has offered him a coalition advance to payoff all the belief card advances. The advance calls for monthly payments for 10 years and has a pretended cause scold of 5.99% (APR). What conclude Mr. Spend’s monthly payments be if he captivates the advance?
Credit Card Advance Equality Monthly Payment
Visa 1 $3,000 $90 Visa 2 $5,000 $120 Visa 3 $6,000 $150 Master Card 1 $1,000 $20
26 Mr. Carter is planning to buy a settlement and he forebodes to borrow $200,000 for that point. Currently 15-year advance advances are quoted at 5% (APR). He forebodes to create monthly payments towards the advance.
Calculate his monthly payments. What conclude be the unappropriated correspondentity on the advance succeeding making payments for 5 years?