1.Ali deposits 6000 into an account that pays simple interest at a rate of 6% per year. How much interest will he be paid in the first 5 year?

2.You would like to set up an annuity so that, after you retire, you can take out the interest from the maturity value every month to pay living expenses (you predit that you will need $1200 every month). If you start saving 20 years before retirement into an account paying 6% interest, how large of a monthly payment will you need to make?

3.An investment of $8,000 is made at 3.5% interest for 8 years. Determine the maturity value (rounded to the nearest penny) in each of the following cases.

(a) Simple interest is used.

(b) The interest is compounded annually.

(c) The interest is compounded continuously.

4.In April 2014, Greece managed to sell some 3 billion in new five-year bonds at a yield of just 4.95%.

Answer the following questions (show all calculations):

Suppose a coupon of 4.75% (assume that each bond pays interest annually) and the actual yield to maturity (YTM) of 4.95%. How much is the present value (price) of a bond with 1,000 face value at the time of issue?

5.Suppose a company has an advertising of $880000 in 2016, which represent 35% of their total revenue. What is the total revenue?

6.The Company has a savings plan for its employees. If an employee makes an initial contribution of $500, the company pays 7% interest compounded quarterly.

a. If an employee participating in the plan withdraws the balance of the account after

5 years, how much will be in the account?

b. If an employee participating in the plan withdraws the balance of the account after

35 years, how much will be in the account?

7.Jones Corp is evaluating a project that has the following annual free cash flows: Period 0 1 2 Free Cash Flow 150 100 150If the project's discount rate is 12%, then what is the NPV of the project?

8.Yesterday the Rockville corporation instituted a 2-for-1 split. Before the split, the market share price was $63.44 per share and the corporation had 2.3 billion shares outstanding. ?

What was the pre-split market cap for Rockville?

what was the post-split number of shares outstanding for Rockville?

What was the post-split market price per share for rockville?

9.How do you count up equity

10.I've read that to calculate **equity**-to-**assets** using **assets**-to-**equity** the following can be done: assets-to-equity = 40% equity-to-assets = 1/0.4 = 2.5 Why does that work out?