Question
Below are the questions, I don't know why it says question options because there are none, but please pay attention to the decimal options that
The Miami Dolphins are considering paying Jonathan Martin a lump sum of $15744000 three years from now as part of a settlement. If the relevant discount rate is 15 percent, what is the present value of this liability?
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Question 2 (1 point)
Assume the total cost of a college education will be $202000 when your child enters college in 15 years. You presently have $35000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Enter answer as 3 decimal places (e.g. 0.123)
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Question 3 (1 point)
You plan to retire in 34 years. You are debating whether to deposit $44000 into an account earning 5 percent annually today or waiting 8 years before making the deposit. How much more will be in the account when you retire in 34 years if you make the deposit today as opposed to waiting 8 years to make the first deposit?
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Question 4 (1 point)
You currently have $3400. You plan on investing it at 14 percent per year until you have $64200. How long will you wait until you achieve this goal? Enter the answer with 2 decimals (e.g. 1.23).
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Question 5 (1 point)
Investment X offers to pay you $4100 per year for 10 years, whereas Investment Y offers to pay you $3100 per year for 8 years. How much higher is the present value investment X if the discount rate is 6 percent?
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Question 6 (1 point)
An investment offers $5500 per year for 11 years, with the first payment occurring 1 year from now. If the required return is 13 percent, what is the value of the investment?
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Question 7 (2 points)
An investment offers $7200 per year for 20 years, with the first payment occurring 5 years from now. If the required return is 7 percent, what is the value of the investment? (HINT: Remember that when you calculate the PV of the annuity, the claculator gives you the present value of the annuity 1 period before the annuity starts. So if the annuity starts in year 7, that calculator will to give you the persent value of annuity in year 6. Now you have to bring this number to period 0 by inputting: N=6 (1 period before the annuity starts, in your case it would be a different number depending when your annuity starts) R=7 FV=Present value of annuity you found in step 1. And you solve for PV)
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Question 8 (1 point)
Havana, Inc., has identified an investment project with the following cash flows. If the discount rate is 11 percent, what is the future value of these cash flows in Year 4? (Hint: Becareful with the number of periods.) If the picture doesn't load, the cash flows shown in the picture are as follows: 910 in year 1; 1140 in year 2; 1360 in year 3; and 2100 in year 4.
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Question 9 (2 points)
Havana, Inc., has identified an investment project with the following cash flows. If the discount rate is 6 percent, what is the future value of these cash flows in Year 11? (Hint: Becareful with the number of periods.) If the picture doesn't load, the cash flows shown in the picture are as follows: 910 in year 1; 1140 in year 2; 1360 in year 3; and 2100 in year 4.
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Question 10 (1 point)
You want to have $53600 in your savings account 22 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. If the account pays 12 percent interest, what amount must you deposit each year?
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Question 11 (1 point)
What is the EAR if the APR is 13 percent compounded monthly? Enter answer as 4 decimals (e.g. 0.1234)
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Question 12 (1 point)
What is the EAR if the APR is 3 percent compounded daily? Enter answer as 4 decimals (e.g. 0.1234)
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Question 13 (1 point)
What is the future value of $6900 in 19 years assuming an interest rate of 4 percent compounded monthly?
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Question 14 (1 point)
Maybepay Life Insurance Co. is selling a perpetual contract that pays $4600/year. The contract currently sells for $114000. What is the rate of return on this investment? Enter answer as 4 decimals (e.g. 0.1234).
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Question 15 (1 point)
You are to make monthly deposits of $1300 into a retirement account that pays 5 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 15 years?
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Question 16 (2 points)
You expect to graduate with $17600 in student loans. The interest rate on your loan is 5.0 percent compounded monthly and the loan calls for fixed monthly payments. If you repay the loan in 22 years how much are you paying in total interest over the life of the loan? (HINT: you need to calculate the monthly payment first).
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Question 17 (1 point)
You are excited to buy your first house. Based on your credit history, the bank is willing to lend you money at 4 percent interest compounded monthly. You can afford monthly payments of $1350. How much can you afford to borrow? Assume the mortgage is for 20 years.
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Question 18 (1 point)
You currently have $20000.00 in a bank account that pays you 5 percent interest annually. You plan to deposit $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?
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Question 19 (1 point)
You currently have $20000.00 in a bank account that pays you 5 percent interest annually. You plan to withdraw $800 (starting 1 year from now) every year for the next 10 years in the same account. How much are you going to have in that account at the end of 10 years?
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Question 20 (1 point)
You currently have $39471.00 in an account that pays 5 percent interest. You plan to deposit in this account $3581 at the end of each year until the account reaches $124578. How long would that take? Enter your answer with 4 decimals (e.g. 5.1234).
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