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Business Finance question need help computing these problems using formulas showing all work PROBLEMS 9-12 Business Finance (Fin 3200) Assignment a 1. i Solar-light Inc.
Business Finance question need help computing these problems using formulas showing all work
PROBLEMS 9-12
Business Finance (Fin 3200) Assignment a 1. i Solar-light Inc. is considering a project with the following cash fows YEAR Cash Flow $800 a) Calculate the tuture value of these cash flows (end of year 4), if the interest rate is 12%. b) What will bo the future value if the interest rate is changed to 16%? 2. Mr. Hobbit deposits $2,000 at the end of each year for the next 10 years at an interest rate of 12% per year, How much will he have accumulated at the ond of 10 years? How much would he have accumulated if he deposited the amounts at the beginning of each year? 3. Find the present value of a porpetuity that pays S2.000 per yoar and the interest rate is 10% 4. Given the following data, calculate the effoctive annual rate (EAR) in each case Sated rate Frequency of Effective rate EAR Month Quarterly Daily(use 36 days) 5. Givon the following data, calculate the stated (Nomina) annual rate (APR) in each case Sated rate Effective rate (EAR) Daily luso 365 days) 15% 6. Big Bank Corp. wants to earn an effective interest rate of 9% (EAR) on its consumer loans. It uses monthly compounding on consumor loans. What should be the stated (Nominal) rate (APR) on these loans? Calculate the future value of S1,000 in 10 years assuming an interest rate of 12%(APA) compounded Also calculate the effective annual rate (EAR) on the investment. 8, Mr. wise is retiring in 25 years. He would like to accumulate $1.000.000 for his retirement fund by then. He plans make equal monthly payments to achieve his goal. the rate of return on the retirement fund is 12% (APR), what will his monthly payments be? 9. Mr. Wise makes payments (as per problem 8) for the first ten years and stops making payments afterwards due personal problems. How much would he have accumulated at the time of retirement assuming that the accumulated amount keeps on eaming interest at the stated rate on a monthly basisStep by Step Solution
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