Finance misc. problems | Business & Finance homework help


1. Toadies, Inc., has authorized an cannonade scheme delay the aftercited money flows.

Year Money Flow
1 $ 1,525
2 1,645
3 1,730
4 1,780

If the abatement trounce is 8 percent, what is the forthcoming estimate of the money flows in year 4? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Future estimate $

If the abatement trounce is 11 percent, what is the forthcoming estimate of the money flows in year 4? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Future estimate $

If the abatement trounce is 24 percent, what is the forthcoming estimate of the money flows in year 4? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Future estimate $

2.
The Maybe Pay Life Insurance Co. is trying to hawk you an cannonade device that obtain pay you and your heirs $35,000 per year continually. If the required yield on this cannonade is 5.30 percent, how plenteous obtain you pay for the device? (Round your repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

3.First National Bank score 13.6 percent compounded monthly on its transaction mortgages. Primitive United Bank score 13.9 percent compounded semiannually.

Calculate the EAR for Primitive National Bank and Primitive United Bank. (Do not smooth comprised calculations and smooth your latest repartees to 2 decimal places. (e.g., 32.16))

EAR
First National %
First United %

As a virtual borrower, which bank would you go to for a new mortgage?

4. Wainright Co. has authorized an cannonade scheme delay the aftercited money flows.

Year Money Flow
1 $ 920
2 1,330
3 1,590
4 1,775

If the abatement trounce is 10 percent, what is the confer-upon estimate of these money flows? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

What is the confer-upon estimate at 20 percent? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

What is the confer-upon estimate at 30 percent? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

5.
An cannonade offers $6,500 per year for 20 years, delay the primitive liquidation occurring one year from now.

If the required yield is 7 percent, what is the estimate of the cannonade? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

What would the estimate be if the liquidations occurred for 45 years? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

What would the estimate be if the liquidations occurred for 70 years? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

What would the estimate be if the liquidations occurred continually? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Present estimate $

6. Find the EAR in each of the aftercited cases (Use 365 days a year. Do not smooth comprised calculations and smooth your latest repartees to 2 decimal places. (e.g., 32.16)):

Stated Trounce (APR) Number of Times Compounded Efficient Trounce (EAR)
10.0 % Quarterly %
19.0 Monthly
15.0 Daily
12.0 Infinite

7. You are planning to constitute monthly confidences of $390 into a solitude statement that pays 8 percent share compounded monthly. If your primitive confidence obtain be made one month from now, how extensive obtain your solitude statement be in 25 years? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

8.Investment X offers to pay you $5,000 per year for view years, inasmuch-as Cannonade Y offers to pay you $7,100 per year for five years.

Calculate the confer-upon estimate for Cannonade X and Y if the abatement trounce is 5 percent. (Do not smooth comprised calculations and smooth your latest repartees to 2 decimal places. (e.g., 32.16))

Present estimate
Investment X $
Investment Y $

Calculate the confer-upon estimate for Cannonade X and Y if the abatement trounce is 15 percent. (Do not smooth comprised calculations and smooth your latest repartees to 2 decimal places. (e.g., 32.16))

Present estimate
Investment X $
Investment Y $

9.You neglect to buy a new sports coupe for $82,500, and the finance employment at the dealership has quoted you a 6.4 percent APR mortgage for 72 months to buy the car.
What obtain your monthly liquidations be? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Monthly liquidation $

What is the efficient annual trounce on this mortgage? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Effective annual trounce %

10.You’re speedy to constitute monthly liquidations of $310, start at the end of this month, into an statement that pays 7.2 percent share compounded monthly.

How frequent liquidations obtain you feel made when your statement neutralize reaches $22,000? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Number of liquidations

11. You neglect to be a very-rich-man when you shrink in 40 years.

How plenteous do you feel to hinder each month if you can deserve an 11.6 percent annual yield? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Savings per month $

How plenteous do you feel to hinder each month if you hold 10 years precedently you start your confidences? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Savings per month $

How plenteous do you feel to hinder each month if you hold 20 years precedently you start your confidences? (Do not smooth comprised calculations and smooth your latest repartee to 2 decimal places. (e.g., 32.16))

Savings per month $