Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Finance


Home >> Basic Finance

1. Assume an interest rate of 5% per year. How much would you lose over 12 years if you had to give up interest on the interest-that is, if you received 60% instead of compounded interest?

A. 5%

B. 0%

C. 3%

D. 20%

2. What is the present value of receiving $650 in 7 years if you expect a rate of return of 7% a year?   

A. $405

B. $844

C. $553

D. $664

3. What is the present value of receiving $500 a year for 5 years if you expect a rate of return of 8.0% a year? 

A. $1,996

B. $1,900

C. $735

D. $1,501

4. Use the table below to answer the following question:

Present Value of 1

Present Value of an Annuity of 1

Period

5%

10%

5%

10%

1

0.9535

0.9091

0.9535

0.9091

2

0.9091

0.8264

1.8626

1.7355

3

0.8668

0.7513

2.7293

2.4869

4

0.8264

0.6830

3.5558

3.1699

5

0.7880

0.6209

4.3438

3.7908

6

0.7513

0.5645

5.0951

4.3553

Assumption:   Required annual rate of return is 10%.

If an investment pays you $1,000 every 6 months for 3 years, what is its present value?  

A. $4,729

B. $5,344

C. $5,095

D. $4,508

5. Use the table below to answer the following question:

Present Value of 1

Present Value of an Annuity of 1

Period

5%

10%

5%

10%

1

0.9535

0.9091

0.9535

0.9091

2

0.9091

0.8264

1.8626

1.7355

3

0.8668

0.7513

2.7293

2.4869

4

0.8264

0.6830

3.5558

3.1699

5

0.7880

0.6209

4.3438

3.7908

6

0.7513

0.5645

5.0951

4.3553

Assumption:   Required annual rate of return is 10%.

If the investment pays $1,000 at the beginning of each 6-month period (starting with the initial investment date) for 3 years what would the present value be?

A. $4,508

B. $4,728

C. $5,344

D. $5,095

6. Use the table below to answer the following question:

Present Value of 1

Present Value of an Annuity of 1

Period

5%

10%

5%

10%

1

0.9535

0.9091

0.9535

0.9091

2

0.9091

0.8264

1.8626

1.7355

3

0.8668

0.7513

2.7293

2.4869

4

0.8264

0.6830

3.5558

3.1699

5

0.7880

0.6209

4.3438

3.7908

6

0.7513

0.5645

5.0951

4.3553

Assumption:   Required annual rate of return is 10%.

What would the present value be if the investment pays you $6,000 at the end of 3 years? 

A. $4,508

B. $5,344

C. $4,728

D. $5,095

E. $3,203

7. Use the table below to answer the following question:

Present Value of 1

Present Value of an Annuity of 1

Period

5%

10%

5%

10%

1

0.9535

0.9091

0.9535

0.9091

2

0.9091

0.8264

1.8626

1.7355

3

0.8668

0.7513

2.7293

2.4869

4

0.8264

0.6830

3.5558

3.1699

5

0.7880

0.6209

4.3438

3.7908

6

0.7513

0.5645

5.0951

43553

Assumption:   Required annual rate of return is 10%.

What would the present value be if the investment pays you $2,000 at the end of each year for 3 years?  

A. $4,958

B. $4,974

C. $5,471

D. $4,508

8. Use the table below to answer the question:

Present Value of an Annuity of 1

Future Value of an Annuity of 1

Period

3%

5%

6%

10%

3%

5%

6%

10%

5

4.5854

4.3438

4.2124

3.7908

5.3045

5.5125

5.6371

6.1051

6

5.4250

5.0951

4.9173

4.3553

6.4613

6.7816

6.9753

7.7156

7

6.2406

5.8114

5.5824

4.8684

7.6523

8.1126

8.3938

9.4872

8

7.0327

6.4944

6.2098

5.3349

8.8786

9.5085

9.8975

11.4359

9

7.8020

7.1457

6.8017

5.7590

10.1410

10.9726

11.4913

13.5795

10

8.5493

7.7666

7.3601

6.1446

11.4408

12.5082

13.1808

15.9374

11

9.2751

8.3586

7.8869

6.4951

12.7791

14.1187

14.9716

18.5312

12

9.9800

8.9231

8.3838

6.8137

14.1568

15.8078

16.8699

21.3843

Alicia gets a yearly alimony payment from her ex-husband and wants to saves enough to put a 25% down payment on a home in 5 years. Median homes go for $550,000. How much should Alicia put away into an investment each year if she can get a 6% return a year?      

A. $12,018

B. $24,392

C. $16,083

D. $32,642

9. Use the table below to answer the following question:

Present Value of an Annuity of 1

Future Value of an Annuity of 1

Period

3%

5%

6%

10%

3%

5%

6%

10%

5

4.5854

4.3438

4.2124

3.7908

5.3045

5.5125

5.6371

6.1051

6

5.4250

5.0951

4.9173

4.3553

6.4613

6.7816

6.9753

7.7156

7

6.2406

5.8114

5.5824

4.8684

7.6523

8.1126

8.3938

9.4872

8

7.0327

6.4944

6.2098

5.3349

8.8786

9.5085

9.8975

11.4359

9

7.8020

7.1457

6.8017

5.7590

10.1410

10.9726

11.4913

13.5795

10

8.5493

7.7666

7.3601

6.1446

11.4408

12.5082

13.1808

15.9374

11

9.2751

8.3586

7.8869

6.4951

12.7791

14.1187

14.9716

18.5312

12

9.9800

8.9231

8.3838

6.8137

14.1568

15.8078

16.8699

21.3843

Alicia gets a yearly alimony payment from her ex-husband and wants to saves enough to put a 25% down payment on a home in 5 years. Median homes are currently at $550,000. How much should Alicia put away into an investment each year if she can get a 6% return a year? Median homes prices are expected to appreciate at the inflation rate of 3%?

A. $37,841

B. $18,645

C. $28,277

D. $13,933

10. Use the table below to answer the following question:

Present Value of an Annuity of 1

Future Value of an Annuity of 1

Period

3%

5%

6%

10%

3%

5%

6%

10%

5

4.5854

4.3438

4.2124

3.7908

5.3045

5.5125

5.6371

6.1051

6

5.4250

5.0951

4.9173

4.3553

6.4613

6.7816

6.9753

7.7156

7

6.2406

5.8114

5.5824

4.8684

7.6523

8.1126

8.3938

9.4872

8

7.0327

6.4944

6.2098

5.3349

8.8786

9.5085

9.8975

11.4359

9

7.8020

7.1457

6.8017

5.7590

10.1410

10.9726

11.4913

13.5795

10

8.5493

7.7666

7.3601

6.1446

11.4408

12.5082

13.1808

15.9374

11

9.2751

8.3586

7.8869

6.4951

12.7791

14.1187

14.9716

18.5312

12

9.9800

8.9231

8.3838

6.8137

14.1568

15.8078

16.8699

21.3843

Alicia wishes to save $220,000 in 5 years from alimony she receives. If Alicia receives alimony payments every 6 months and the next payment is tomorrow, how much money should she put away into a 6% return investment each time she receives an alimony payment?                    

A. $24,994

B. $18,677

C. $19,514

D. $26,113

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91522809
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Basic Finance

Timco is considering project a project a will cost 23000 it

Timco is considering project A. Project A will cost 23000. It should provide after tax cash inflows of 5000 per year for the next 6 years. The cost of funds is 10%. Find the MIRR. Should Timco buy it?

Question - laine needs to save up 4000 in 4 years if she

Question - laine needs to save up $4000 in 4 years. If she can set aside $1000 today, what rate of return does she need on her account? Elaine needs to save up $4000 in 4 years. If she can set aisde $50 per month what ra ...

Able corporation has project a with the following cash

Able Corporation has Project A with the following cash flows and a 6.8% cost of money: Numbers in parentheses are outflows. Both Year 0 and Year 3 cash flows are outflows. What is the net present value? Year Cash flow  0 ...

You borrow 165000 to buy a house the mortgage rate is 40

You borrow $165,000 to buy a house. The mortgage rate is 4.0 percent and the loan period is 30 years. Payments are made monthly. If you pay the mortgage according to the loan agreement, how much total interest will you p ...

Soma needs loan from para soma needs 14400 and para agreed

Soma needs loan from Para. Soma needs $14,400 and Para agreed to lend the $14,400 if Soma makes one payment to Para in the amount of $18,000, to be paid four months from now. What is the EAR on this loan?

Question - a company in a line of business similar to bay

Question - A company in a line of business similar to Bay Path recently issued at par non-callable bonds with a coupon rate of 5.8% and a maturity of twenty years. The bonds were rated Aa1 by Moody's and AA by Standard & ...

1 there are three investments you are

1. There are three investments you are considering: Investment 1: A saving account with an interest rate of 6% compounded daily. Investment 2: An investment fund guarantees it will pay 6.15% compounded annually. Investme ...

Discuss the core business objectives and the primary focus

Discuss the core business objectives and the primary focus of the financial business model.

A company recently had 26 million shares outstanding

A company recently had 26 million shares outstanding trading at $45/share. The company announces its intention to raise $290M by selling new shares. What price shoukd the company expect its existing shares shares to sell ...

Assignment - examining a companys working capital

Assignment - Examining a company's working capital needs Select a company that has inventory, accounts receivable and accounts payable on its balance sheet. Using the most recent annual financial statement for a company, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved