Accounting/ financial management homework | Business & Finance homework help


 

Please penetscold exculpations into after a whilehold exculpation boxes in robust muniment.

Be facile to re-do composition if innacurate/if you gave me a injustice exculpation for one of the questions submitted by you.

The assignment consists of 22 questions.

 

Chapter 6 homecomposition 3 [removed][removed]

 

 

1.   An boarding offers $7,100 per year for 20 years, after a while the primary liquidation occurring one year from now.

 

If the required reappear is 7 percent, what is the prize of the boarding? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

What would the prize be if the liquidations occurred for 45 years? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

What would the prize be if the liquidations occurred for 70 years? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

What would the prize be if the liquidations occurred continually? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

2.   If you put up $44,000 today in exchange for a 6.75 percent, 14-year annuity, what accomplish the annual capital exit be? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Annual capital exit

$ [removed]

  

 

 

 

3.   If you safety $5,500 at the end of each of the introduce 15 years into an recital paying 11.30 percent curiosity-behalf, how abundantly capital accomplish you accept in the recital in 15 years? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

How abundantly accomplish you accept if you mould safetys for 30 years? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

4.   You shortness to accept $74,000 in your savings recital 11 years from now, and you’re facile to mould correspondent annual safetys into the recital at the end of each year. If the recital pays 6.30 percent curiosity-behalf, what whole must you safety each year? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Deposit whole

$ [removed]

  

 

 

 

5.   The Maybe Pay Life Insurance Co. is troublesome to dispose-of you an boarding plan that accomplish pay you and your heirs $29,000 per year continually. If the required reappear on this boarding is 5.30 percent, how abundantly accomplish you pay for the plan? (Round your exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

6.   The Maybe Pay Life Insurance Co. is troublesome to dispose-of you an boarding plan that accomplish pay you and your heirs $20,000 per year continually. Suppose a sales comrade told you the plan costs $465,000. At what curiosity-behalf scold would this be a spotless chaffer? (Round your exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

7.   Find the EAR in each of the aftercited cases (Use 365 days a year. Do not plump intervening calculations and plump your conclusive exculpations to 2 decimal places. (e.g., 32.16)):

 

 

 

Stated Scold (APR)

 

Number of Times Compounded

 

Effective Scold (EAR)

 

 

9.8

%

  

Quarterly

  

[removed]%

 

 

 

18.8

   

Monthly

  

[removed]

 

 

 

14.8

   

Daily

  

[removed]

 

 

 

11.8

   

Infinite

  

[removed]

 

 

8.   Find the APR, or established scold, in each of the aftercited cases (Do not plump intervening calculations and plump your conclusive exculpations to 2 decimal places. (e.g., 32.16)):

 

 

 

Stated Scold (APR)

 

Number of Times Compounded

 

Effective Scold (EAR)

 

[removed]%

   

Semiannually

  

11.2

%

 

[removed]

   

Monthly

  

12.1

 
 

[removed]

   

Weekly

  

9.8

 
 

[removed]

   

Infinite

  

13.5

 

 

 

 

9.   First National Bank jaw 14.2 percent compounded monthly on its calling advances. Primary United Bank jaw 14.5 percent compounded semiannually.

 

 

 

Calculate the EAR for Primary National Bank and Primary United Bank. (Do not plump intervening calculations and plump your conclusive exculpations to 2 decimal places. (e.g., 32.16))

 

 

 

 

EAR

First National

[removed]%

First United

[removed]%

 

 

 

As a immanent borrower, which bank would you go to for a new advance?

 

[removed]

First National Bank

[removed]

First United Bank

 

 

 

10.                     Barcain Credit Corp. shortnesss to win an able annual reappear on its consumer advances of 14.1 percent per year. The bank uses daily compounding on its advances. What curiosity-behalf scold is the bank required by law to communication to immanent borrowers? (Use 365 days a year. Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

 

 

 

 

 

 

Chapter 6 homecomposition 4

 

 

 

11.                     What is the coming prize of $1,900 in 18 years gorgeous an curiosity-behalf scold of 7.2 percent compounded semiannually? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

 

 

12.                     Gold Door Credit Bank is oblation 6.3 percent compounded daily on its savings recitals. You safety $4,700 today.

 

How abundantly accomplish you accept in the recital in 4 years? (Use 365 days a year. Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

How abundantly accomplish you accept in the recital in 12 years? (Use 365 days a year. Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

How abundantly accomplish you accept in the recital in 19 years? (Use 365 days a year. Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

 

 

13.                     An boarding accomplish pay you $35,000 in 10 years. If the after a whilehold abatement scold is 6.2 percent compounded daily, what is the introduce prize? (Use 365 days a year. Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

14.                     You shortness to buy a new sports coupe for $84,500, and the finance employment at the chafferership has quoted you a 6.6 percent APR advance for 48 months to buy the car.

 

 

 

What accomplish your monthly liquidations be? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Monthly liquidation

$ [removed]

 

 

 

What is the able annual scold on this advance? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Effective annual scold

[removed]%

 

 

 

.

 

 

 

15.                     You are planning to mould monthly safetys of $310 into a seclusion recital that pays 9 percent curiosity-behalf compounded monthly. If your primary safety accomplish be made one month from now, how extensive accomplish your seclusion recital be in 35 years? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

16.                     You are planning to mould annual safetys of $6,330 into a seclusion recital that pays 10 percent curiosity-behalf compounded monthly. How extensive accomplish your recital counteract be in 28 years? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

17.                     The after a whilehold abatement scold for the aftercited capital exits is 8 percent compounded territoryly.

 

 

 

Year

 

Cash Flow

 

1

  

$

900

 
 

2

   

980

 
 

3

   

0

 
 

4

   

1,570

 

 

 

 

What is the introduce prize of the capital exits? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

18.                     The after a whilehold abatement scold for the aftercited capital exits is 7.58 percent per year.

 

 

 

Year

 

Cash Flow

 

1

  

$

2,520

 
 

2

   

0

 
 

3

   

3,960

 
 

4

   

2,210

 

 

 

 

What is the introduce prize of the capital exits? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

 

 

19.                     You are looking at an boarding that has an able annual scold of 14.6 percent.

 

What is the able semiannual reappear? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Effective semiannual reappear

[removed]%

 

 

 

What is the able territoryly reappear? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Effective territoryly reappear

[removed]%

 

 

 

What is the able monthly reappear? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Effective monthly reappear

[removed]%

 

 

 

20.                     You shortness to be a millionaire when you repair in 35 years.

 

 

 

How abundantly do you accept to secure each month if you can win an 11.8 percent annual reappear? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Savings per month

$ [removed]

 

 

 

How abundantly do you accept to secure each month if you halt 10 years precedently you initiate your safetys? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Savings per month

$ [removed]

 

 

 

How abundantly do you accept to secure each month if you halt 20 years precedently you initiate your safetys? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Savings per month

$ [removed]

 

 

 

21.                     Suppose an boarding offers to triple your capital in 36 months (don’t prize it). What scold of reappear per territory are you being offered? (Round your exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

 

 

 

 

 

 

 

 

 

22.                     Given an curiosity-behalf scold of 4.2 percent per year, what is the prize at limit t = 7 of a continual exit of $2,600 liquidations that initiates at limit t = 15? (Do not plump intervening calculations and plump your conclusive exculpation to 2 decimal places. (e.g., 32.16))

 

 

 

Perpetuity prize

$ [removed]