Answers are provided but need step by step solutions without excel just basic step by step with formulas

1. John invested $20,000 fifteen years ago with an insurance company that has paid him 8 percent (APR), compounded quarterly (every 3 months). How much interest did John earn over the 15 years?= $45,620.62

2. You are running short of cash and really need to pay your tuition. A friend suggests that you check out the local title pawn shop. At the shop they offer to loan you $5,000 if you pay them back $6,000 in one month. It seems like a good idea to you because you dont want to sell your car and you are sure you will be able to pay the money back in a month. What is the APR on this loan?=. 240%

4. You want to buy a new sports car for $50,000. The contract is in the form of a 60-month annuity due at a 7.2 APR. What will your monthly payment be?= $988.85

6. The stated rate (APR) is 8.6% with semi-annual compounding. What is the equivalent annual rate (EAR)?= 8.78%

7. The effective annual rate (EAR) is 9% with monthly compounding. What is the stated rate (APR)?= 8.649%

8. Ryan delivers newspapers and is putting $40 in the bank at the end of each quarter. Ryan is 10 years old and will use the money when he goes to college in 8 years. What will be the value of Ryans account in 8 years if he is earning 8.5% APR with quarterly compounding?=$1,806.81

11. Tim needs to borrow $5,000 for two years. The loan (principal and interest) will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim? = 7.2 percent simple interest

12. You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 8.6 percent interest. How long must you wait for your investment to double in value? = 8.4 years

13. Taylor has just received an insurance settlement of $58,400. She wants to save this money until her oldest daughter goes to college. Taylor can earn an average of 5.5 percent, compounded annually, on this money. How much will she have saved for her daughter's college education if her daughter enters college 14 years from now? = $123,579.74

14. Your grandfather gave you a 50 cent piece his father got in 1922. Today (2010) the coin is worth $2,000. What is the return on this investment? = 9.884 percent

16. When you were born, your aunt opened an investment account in your name and deposited $500 into the account. You are now 22 years old. Today, the account is valued at $6,492.74.. Assuming semi-annual compounding, what is the average annual rate of return on the account?=12%

19. Williams landscaping needs to borrow $42,000 for a new front-end loader. The bank is willing to loan the funds at 10% interest with annual payments at the end of the year for the next 10 years. What is the annual payment?= $6,835.30

20. You are delinquent on one of your credit cards. You have agreed with the bank to make payments of $90 per month starting the end of this month. The interest rate on the balance is 1% per month. If you owe $8,000, how long will it take for the account to be paid off?= 221 months

Part 2: Problems.

1. You have compiled the following information for a firm:

2008 2009

Sales $7,487 $9,618

Interest paid 735 785

Cost of goods sold 2,713 3,284

Other costs 592 728

Current assets 3,131 3,383

Current liabilities 564 643

Net fixed assets 8,592 7,517

Long-term debt 1,455 1,698

Dividends paid 120 100

Depreciation 202 263

year 2009. The tax rate is 35%.

1. What was net income (NI)?

2. What was operating cash flow (OCF)?

3. What was net capital spending (NCS)?

4. What was the change in net working capital (NWC)?

5. What was the cash flow from assets (CFA)?