Question
A)Miss Marble plans to open her bookstore in 5 years. To raise the seed money, she puts $69,000 into a mutual fund today. She puts
A)Miss Marble plans to open her bookstore in 5 years. To raise the "seed" money, she puts $69,000 into a mutual fund today. She puts an additional $700 per month (end of each month) into the fund for the next 5 years. How much will she have in 5 years if the interest rate is 3% compound monthly B)Three years ago, TriBand Bonds were issued at par with a 15 year maturity. The face value is $1000. The coupon rate is 5.8% and coupons are paid semiannually. If investors now demand a yield of 8% compound semiannually, find the current price of the bond. Answer should be to 2 decimal places and based on $1000 face. C)Last year, Bay Company had 130 million in retained earnings. This year, they generated 60 million in net income. They decide to pay out 40% as a dividend. Find the retained earnings for this year (in M). Answer to the nearest million (For example, enter 2 for 2 million).
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