Question
Calculate the payment to be received at the beginning of each quarter for 6 years from an investment of $15,000 earning 7%, compounded quarterly. Calculate
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Calculate the payment to be received at the beginning of each quarter for 6 years from an investment of $15,000 earning 7%, compounded quarterly.
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Calculate the monthly payment for a home loan of $150,000 financed at 6.75% over 15 years.
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Calculate the NPV of a machine which is bought for $10,000, sold at the end of year 5 for $3,500, and produces the following cash flows: year 1: +$300; year 2: +$600; year 3: +$1200; year 4: +$2400; year 5: +$4800, assume the cost of capital is 6%.
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Calculate the IRR of a project that requires an initial cash flow of $10,000, sold at the end of year 5 for $3,500, and produces the following cash flows: year 1: +$300; year 2: +$600; year 3: +$1200; year 4: +$2400; year 5: +$4800.
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Calculate the number of months it will take $10,000 to grow to $1,000,000 assuming an annual rate of return of 6%, compounded monthly.
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Today Jim Jones purchased a new sports car for $80,000. He expects it to decrease in value at a rate of 6% compounded annually for the next 5 years. How much will the car be worth at the end of the 5th year if his expectations are correct.
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Tina, who just turned 18, deposits $20,000 gift into an interest bearing account earning 2% annual rate of interest compounded monthly. How much will she have in the account when she retires at 60 assuming all interest is reinvested at the 2% rate?
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Billy wants to give his daughter $150,000 on her graduation date in 5 years. How much should he invest today at an annual interest rate of 3% compounded annually to have $150,000 in 5 years?
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Mike expects to receive $100,000 from the sale of his business in 5 years. What is the current value of his business if it is discounted at 9% compounded semiannually?
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Jack expects to receive $1,000,000 in 40 years. His opportunity cost is 6% compounded monthly. What is this sum worth to Jack today?
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Sarah borrowed $10,000 from her aunt to donate to charity. Sarah paid back $7,000 to her aunt at the end of 3 years. What was the average annual compound rate of interest on Sarahs loan from her aunt?
Calculate the payment to be received at the beginning of each quarter for 6 years from an investment of $15,000 earning 7%, compounded quarterly.
Calculate the monthly payment for a home loan of $150,000 financed at 6.75% over 15 years.
Calculate the NPV of a machine which is bought for $10,000, sold at the end of year 5 for $3,500, and produces the following cash flows: year 1: +$300; year 2: +$600; year 3: +$1200; year 4: +$2400; year 5: +$4800, assume the cost of capital is 6%.
Calculate the IRR of a project that requires an initial cash flow of $10,000, sold at the end of year 5 for $3,500, and produces the following cash flows: year 1: +$300; year 2: +$600; year 3: +$1200; year 4: +$2400; year 5: +$4800.
Calculate the number of months it will take $10,000 to grow to $1,000,000 assuming an annual rate of return of 6%, compounded monthly.
Today Jim Jones purchased a new sports car for $80,000. He expects it to decrease in value at a rate of 6% compounded annually for the next 5 years. How much will the car be worth at the end of the 5th year if his expectations are correct.
Tina, who just turned 18, deposits $20,000 gift into an interest bearing account earning 2% annual rate of interest compounded monthly. How much will she have in the account when she retires at 60 assuming all interest is reinvested at the 2% rate?
Billy wants to give his daughter $150,000 on her graduation date in 5 years. How much should he invest today at an annual interest rate of 3% compounded annually to have $150,000 in 5 years?
Mike expects to receive $100,000 from the sale of his business in 5 years. What is the current value of his business if it is discounted at 9% compounded semiannually?
Jack expects to receive $1,000,000 in 40 years. His opportunity cost is 6% compounded monthly. What is this sum worth to Jack today?
Sarah borrowed $10,000 from her aunt to donate to charity. Sarah paid back $7,000 to her aunt at the end of 3 years. What was the average annual compound rate of interest on Sarahs loan from her aunt?
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Money, Banking, Financial Markets & Institutions
Authors: Michael Brandl
2nd Edition
1337904821, 9781337904827
