Question
1.Determine the periodic deposit. Round up to the nearest dollar. How much of the financial goal comes from deposits and how much comes from interest?
1.Determine the periodic deposit. Round up to the nearest dollar. How much of the financial goal comes from deposits and how much comes from interest?
Periodic Deposit: $? at the end of every three months
Rate: 8.25% compounded quarterly
Time: 40 years
Financial Goal: $1,000,000
2.An endowment fund is created to provide for a prize of #200, 000 every year, the fund can be invested at 5% per annum compound interest. Calculate the amount of the endowment
3.Find the present value that will grow to $25,000 if interest is 6% compounded quarterly for 11 quarters
4.What is the essence of deferred tax liability
5.Jack has$12,000to invest and wants to earn7.5%interest per year. He will put some of the money into a savings account that earns4%per year and the rest into a CD account that earns9%per year. How much money should he put into each account?
6.Does gambling reduce risk? When
7.Describe the relationship between coupon rate and convexity
8.Assume that the sales price per unit is $50 and the variable cost per unit is $30. The fixed costs are $140,000. How many units must be sold to break even? How many dollars of sales revenue must be generated to break even?
9.A bank loaned out $30,000 part of it at the rate of 6% annual interest, and the rest at 9% annual interest. The total interest earned for both loans was $2,280.00. How much was loaned at each rate?
10.kiara invested $3500 into two accounts. one account paid 5% interest and the other paid 7.5% interest. she 6% interest on the total investment. how much money did she put in each account?
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