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##### finance problems

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Question;Question 1 1. If the effective rate is 7%. What is the nominal rate if compounding is daily. Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.1 points Question 2 1. How much do you need to invest today in order to have $2,277 at the end of 6 years if you are sure to earn an interest at the rate of 9%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 3 1. Gertrude Carter and Co. has an outstanding loan that calls for equal annual payments of $14,903 over the 10-year life of the loan. The original loan amount was $100,000 at an APR of 8 percent. How much of the third payment is interest?Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.1 points Question 4 1. What is the future value of $4,357 invested for 29 years at 18% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 5 1. What is the effective rate of 11% compounded monthly? Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.1 points Question 6 1. How much do you need to invest today in order to have $14,899 at the end of 12 years if you are sure to earn an interest at the rate of 11%? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 7 1. The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,573 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $173,245. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box. 1 points Question 8 1. How many years it will take you to quadruple (means 4 times) your money if you can earn 11.63% each year? Note: Do not write "years" in your answer. Simply write the number in the answer box.1 points Question 9 1. How many years it will take you to double your money if you can earn 19% each year, given that compounding is quarterly? Note: Do not write "years" in your answer. Simply write the number in the answer box.1 points Question 10 1. In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years. Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enter the answer rounded off to two decimal points.1 points Question 11 1. What is the future value of $492 invested for 25 years at 16% if interest is compounded semi-annually (twice a year)? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 12 1. How many months it will take to grow your money from $4,760 to $7,928 if you can earn an interest of 11% compounded monthly? Note: Do not write "months" in your answer. Simply write the number in the answer box.1 points Question 13 1. Today, you are purchasing a $4,113 11-year car loan at 12 percent. You will pay annually at the end of each year. What is the amount of each payment?1 points Question 14 1. Kelly starting setting aside funds 4 years ago to buy some new equipment for her firm. She has saved $3,480 each quarter and earned an average rate of return of 9 percent. How much money does she currently have saved for this purpose?1 points Question 15 1. If you can triple your money in 11 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box..1 points Question 16 1. If you can double your money in 23 years, what is the implied annual rate of interest, given that compounded in quarterly? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.1 points Question 17 1. Barrett Pharmaceuticals is considering a drug project that costs $159,155 today and is expected to generate end-of-year annual cash flows of $14,604, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.1 points Question 18 1. 027:Say, you deposit $3,460 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 7 % compounded monthly for first 8 years and interest of 7 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 19 1. How much do you need to invest today in order to have $9,131 at the end of 25 years if you are sure to earn an interest at the rate of 9%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 20 1. If you receive $412 at the end of each year for the first three years and $601 at the end of each year for the next three years. What is the present value? Assume interest rate is 5%.Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get the answer. Just enter the number up to 2 decimal points. Do not enter $ in the answer box.1 points Question 21 1. The ABC Company is considering a new project which will require an initial cash investment of $5,118. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $5,934, $2,442, $6,599, and $2,545, respectively. If the appropriate discount rate is 8%, compute the NPV of the project.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. 1 points Question 22 1. What is the future value of annual payments of $5,595 for 19 years at 5 percent?1 points Question 23 1. Assume interest rate of 3%. A company receives cash flows of $86,130 at the end of years 4, 5, 6, 7, and 8, and cash flows of $280,548 at the end of year 10. Compute the future value of this cash flow stream.Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.1 points Question 24 1. If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?a. $828b. $827c. $833d. $770e. $1,1761 points Question 25 1. What is the future value of $3,990 invested for 10 years at 11% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 26 1. Assume interest rate of 3%. A company receives cash flows of $903 at the end of year 5, $200 at the end of year 7, and $509 at the end of year 10. Compute the future value of this cash flow stream.Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.1 points Question 27 1. What is the future value of quarterly payments of $518 for 14 years at 4 percent?1 points Question 28 1. The ABC Company is considering a new project which will require an initial cash investment of $17,848. The projected cash flows for years 1 through 4 are $6,879, $8,426, $9,661, and $5,223, respectively. If the appropriate discount rate is 10%, compute the NPV of the project.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. 1 points Question 29 1. What is the future value of $13,948 for 13 years at 5 percent if interest is compounded semi-annually? Note: Do not enter "$" in your answer. Simply write down the number that you get as your answer.1 points Question 31 1. Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. 1 points Question 32 1. How many years it will take to grow your money from $3,793 to $7,126 if you can earn an interest of 10% compounded monthly? Note: Do not write "years" in your answer. Simply write the number in the answer box.1 points Question 33 1. Assume interest rate of 4%. Suppose that you receive $97,648 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.1 points Question 34 1. 023A:If you can double your money in 16 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.1 points Question 35 1. How many years it will take to grow your money from $3,416 to $7,649 if you can earn an interest of 17% compounded quarterly? Note: Do not write "years" in your answer. Simply write the number in the answer box.1 points Question 36 1. 026:Say, you deposit $1,680 in a bank for 18 years. What is the amount you will have in the bank at the end of 18 years if interest of 4 % for first 8 years and interest of 10 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

Paper#48775 | Written in 18-Jul-2015

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