Details of this Paper

Managerial Finance

Description

solution


Question

Question;What is the future value of quarterly payments of $639 for 9 years at 4 percent?1 points Question 2What is the future value of $2,623 for 6 years at 10 percent if interest is compounded semi-annually? Note: Do not enter "$" in your answer. Simply write down the number that you get as your answer.1 points Question 3026: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.1 points Question 4What is the future value of annual payments of $2,778 for 5 years at 7 percent?1 points Question 5If you can triple your money in 29 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 6Today, you are purchasing a $4,386 12-year car loan at 9 percent. You will pay annually at the end of each year. What is the amount of each payment?1 points Question 7Gertrude 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 8If you can double your money in 10 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 9027:Say, you deposit $3,531 in a bank for 17 years. What is the amount you will have in the bank at the end of 17 years if interest of 6 % 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 10If 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.$770b.$1,176c.$833d.$828e.$8271 points Question 11What is the effective rate of 13% 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 12Assume interest rate of 8%. A company receives cash flows of $106,656 at the end of years 4, 5, 6, 7, and 8, and cash flows of $207,017 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 13If the effective rate is 15%. 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 14Kelly starting setting aside funds 8 years ago to buy some new equipment for her firm. She has saved $5,182 each quarter and earned an average rate of return of 8 percent. How much money does she currently have saved for this purpose?1 points Question 15If you receive $149 at the end of each year for the first three years and $676 at the end of each year for the next three years. What is the present value? Assume interest rate is 8%.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 16Assume interest rate of 11%. A company receives cash flows of $661 at the end of year 5, $213 at the end of year 7, and $457 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 17In 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 18What should you be willing to pay in order to receive $485 annually forever, if you require 8% per year on the investment?Just enter the number up to 2 decimal points. Do not enter $ in the answer box.1 points Question 19The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $10,828 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $157,258. 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 20How many years it will take you to double your money if you can earn 9% 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 21023A:If you can double your money in 22 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 22Assume interest rate of 7%. Suppose that you receive $72,888 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 23How many years it will take to grow your money from $3,807 to $7,653 if you can earn an interest of 17% compounded monthly? Note: Do not write "years" in your answer. Simply write the number in the answer box.1 points Question 24Barrett Pharmaceuticals is considering a drug project that costs $176,677 today and is expected to generate end-of-year annual cash flows of $13,721, 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 25What is the future value of $1,159 invested for 9 years at 14% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 26What is the future value of $2,226 invested for 16 years at 17% 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 27The ABC Company is considering a new project which will require an initial cash investment of $5,753. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $3,730, $4,568, $2,018, and $3,118, respectively. If the appropriate discount rate is 12%, 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 28How many months it will take to grow your money from $4,221 to $6,855 if you can earn an interest of 6% compounded monthly? Note: Do not write "months" in your answer. Simply write the number in the answer box.1 points Question 29How much do you need to invest today in order to have $13,346 at the end of 23 years if you are sure to earn an interest at the rate of 9%? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 30How many years it will take to grow your money from $4,977 to $9,223 if you can earn an interest of 10% compounded quarterly? Note: Do not write "years" in your answer. Simply write the number in the answer box.1 points Question 31How much do you need to invest today in order to have $5,692 at the end of 16 years if you are sure to earn an interest at the rate of 13%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.1 points Question 32How 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 33The ABC Company is considering a new project which will require an initial cash investment of $16,098. The projected cash flows for years 1 through 4 are $8,471, $5,214, $9,122, and $4,961, 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 34What is the future value of $2,029 invested for 6 years at 12% 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 35Consider 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 36How many years it will take you to quadruple (means 4 times) your money if you can earn 16.19% each year? Note: Do not write "years" in your answer. Simply write the number in the answer box.

 

Paper#49342 | Written in 18-Jul-2015

Price : $57
SiteLock