Financial management hw | Business & Finance homework help


 1. Primeval City Bank pays 6 percent humble cause on its savings representation balances, seeing Second City Bank pays 6 percent cause compounded per-annum.

  

If you made a $60,000 pledge in each bank, how plenteous balance capital would you gain from your Second City Bank representation at the end of 10 years? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

 Difference in representations __$?

  

2. For each of the subjoined, appraise the advenient appraise (Do not plump intervening calculations and plump your conclusive answers to 2 decimal places. (e.g., 32.16)):

 

Present Appraise Years Cause Admonish Future Value 

   $1,950  10    14  %   $___?___

   $8,152    8      8%   $___?___

   $70,355  15    13%             $___?___

   $177,796    6      5%             $___?___

 

 

3. For each of the subjoined, appraise the confer-upon appraise (Do not plump intervening calculations and plump your conclusive answers to 2 decimal places. (e.g., 32.16)):

 

Present Appraise Years Cause Admonish Advenient Value 

   $_____  12      6  %   $14,751

   $_____    3     12%   $44,557

   $_____  28     13%             $879,073

   $_____  30     10 %             $543,164

 

4. Solve for the unrecognized cause admonish in each of the subjoined (Do not plump intervening calculations and plump your conclusive answers to 2 decimal places. (e.g., 32.16)):

 

Present Appraise Years Interest Rate Advenient Value 

   $170  3     __ %   $196

   $290  17     __%   $732

   $32,000  18     __%             $124,723

   $31,261  20     __ %             $226,140

 

 

 

5.Solve for the unrecognized reckon of years in each of the subjoined (Do not plump intervening calculations and plump your conclusive answers to 2 decimal places. (e.g., 32.16)):

 

Present Appraise Years Cause Admonish Advenient Value 

   $510  __     9   %   $1,212

   $760  __     10%   $1,629

   $17,900  __     17%             $260,563

   $21,000         __     15 %             $391,887

 

6. Assume the aggregate require of a seed-plot command allure be $250,000 when your slip enters seed-plot in 17 years. You confer-uponly possess $62,000 to endue.

  

What annual admonish of cause must you gain on your enduement to cloak the require of your slip’s seed-plot command? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Annual admonish of cause ___% ?

 

7. At 5.70 percent cause, how desire does it select to enfold your capital? (Round your tally to 2 decimal places. (e.g., 32.16))

  

  Length of age ____ years  ?

 

At 5.70 percent cause, how desire does it select to quadruple it? (Round your tally to 2 decimal places. (e.g., 32.16))

 

  Length of age ____ years ? 

 

 

8. Assume that in January 2010, the mediocre issue compensation in a feature area was $277,400. In January 2001, the mediocre compensation was $194,300.

  

What was the annual extension in selling compensation? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Annual extension in selling compensation ___ % ? 

 

 

 

 

9. You're involved to economize to buy a new $194,000 Ferrari. You possess $44,000 today that can be endueed at your bank. The bank pays 5.2 percent annual cause on its representations.

  

How desire allure it be antecedently you possess sufficient to buy the car? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Number of years ____ ? 

 

10. Imprudential, Inc. has an unfunded pension obligation of $572 pet that must be compensated in 25 years. To assess the appraise of the firm’s supply, financial analysts omission to remittance this obligation tail to the confer-upon.

  

If the embezzle remittance admonish is 6.5 percent, what is the confer-upon appraise of this obligation? (Enter your tally in dollars not in pets. Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Present appraise $ _____ ? 

 

11. You possess upright current publication that you possess won the $1 pet primeval ovation in the Centennial Lottery. However, the ovation allure be awarded on your 100th birthday (gorgeous you’re aplump to muster), 74 years from now.

  

What is the confer-upon appraise of your windfall if the embezzle remittance admonish is 9 percent? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Present appraise $____ ? 

 

12. Your invent musterion contains 44 1952 silver dollars. If your grandparents alienationd them for their aspect appraise when they were new, how plenteous allure your musterion be forage when you shrink in 2054, gorgeous they esteem at a 5.7 percent annual admonish? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Future appraise $___ ?    

 

 

 

 

 

13. In 1895, the primeval Putting Green Championship was held. The winner’s ovation capital was $180. In 2010, the winner’s bridle was $1,380,000.

  

What was the percentage extension per year in the winner’s bridle balance this determination? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

  Interest admonish ____ %  ? 

 

If the winner’s ovation extensions at the similar admonish, what allure it be in 2037? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

  Future appraise ____ $ ?    

 

14. Assume that in 2010, a gold dollar minted in 1893 sold for $127,000. For this to possess been gentleman, what admonish of reappear did this invent reappear for the fortunate numismatist? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Rate of reappear _____ % ?  

 

15. Although appealing to balance courtly tastes, art as a musterible has not regularly done so profitably. During 2003, an auction issue sold a carved-art at auction for a compensation of $10,361,500. Unfortunately for the prior proprietor, he had alienationd it in 2000 at a compensation of $12,477,500.

  

What was his annual admonish of reappear on this carved-art? (Negative quantity should be indicated by a minus symbol. Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Annual admonish of reappear _____ % ?  

 

1b. Wainright Co. has signed an enduement contrivance delay the subjoined capital flows.  

 

Year Capital Flow 

1$740

2$970

3$1,230

4$1,325

 

 

  

 

If the remittance admonish is 9 percent, what is the confer-upon appraise of these capital flows? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

Present Appraise $ ______ ? 

 

What is the confer-upon appraise at 18 percent? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Present appraise $ ____ ? 

  

What is the confer-upon appraise at 24 percent? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

  

  Present appraise $  ____ ? 

 

 

2. Investment X offers to pay you $4,200 per year for seven years, seeing Cannonade Y offers to pay you $6,300 per year for foul-mouthed years.

  

Calculate the confer-upon appraise for Cannonade X and Y if the remittance admonish is 6 percent. (Do not plump intervening calculations and plump your conclusive tallys to 2 decimal places. (e.g., 32.16))

 

 

Present appraise

  Investment X$   ______?

  Investment Y$   ______?

 

  

Calculate the confer-upon appraise for Cannonade X and Y if the remittance admonish is 16 percent. (Do not plump intervening calculations and plump your conclusive tallys to 2 decimal places. (e.g., 32.16))

 

Present appraise

  Investment X$  ____?

  Investment Y$  ____?

 

 

 

 

 

 

3. Toadies, Inc., has signed an enduement contrivance delay the subjoined capital flows.

   

YearCash Flow 

1$1,625

2$1,745

3$1,830

4$1,880

 

   

If the remittance admonish is 9 percent, what is the advenient appraise of the capital flows in year 4? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

  Future appraise$  _____ ? 

 

If the remittance admonish is 10 percent, what is the advenient appraise of the capital flows in year 4? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

  Future appraise$  _____ ?   

   

If the remittance admonish is 25 percent, what is the advenient appraise of the capital flows in year 4? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

  Future appraise$  _____ ?  

 

4. First Humble Bank pays 8.2 percent humble cause on its enduement representations. If Primeval Complex Bank pays cause on its representations compounded per-annum, what admonish should the bank set if it omissions to companion Primeval Humble Bank balance an enduement horizon of 10 years? (Do not plump intervening calculations and plump your conclusive tally to 2 decimal places. (e.g., 32.16))

 

  Interest admonish _____ % ?   

 

 

 

 

 

 

 

5. Marko, Inc. is regarding the alienation of ABC Co. Marko believes that ABC Co. can geneadmonish capital flows of $6,600, $11,600, and $17,800 balance the proximate three years, respectively. After that age, they affect the concern allure be forageless. Marko has steadfast that a admonish of reappear of 13 percent is conducive to this undeveloped alienation. What is Marko allureing to pay today to buy ABC Co.?

 

  1. $27,261.50
  2. b. $39,420.00

c. $28,896.22

d. $36,000.00

e. $24,876.50

 

6. One year ago, the Jenkins Family Fun Center pledgeed $5,200 in an enduement representation for the view of buying new equipment foul-mouthed years from today. Today, they are adding another $7,000 to this representation. They pur-pose on making a conclusive pledge of $9,200 to the representation proximate year. How plenteous allure be suited when they are disposed to buy the equipment, gorgeous they gain a 6 percent admonish of reappear?

 

a. $25,438.74

b. $26,753.46

c. $25,993.97

d. $24,234.57

  1. $25,495.73