-If the first Thor Marvel comic book was issued in 1949 and in 2016 it was sold for $533,500, at a return of 25.9% per year then how much would the comic book have originally sold for?

-Your daughter is considering two options for her career.  The first is to go to law school at Harvard.  You estimate this will cost you $500,000 and you will have to pay this in one lump sum 5 years from today. 

Her alternative choice is to go to Europe to musical conservatory.  For this option she will need a violin worth $100,000 which you need to buy now.  The cost of her schooling will be $100,000 per year for 3 years starting in 2 years. That is, in 2 years you will need $100,000, another $100,000 in 3 years and another $100,000 in 4 years. 

 If interest you can achieve is 10% compounded annually which option requires less money if you invest today to cover these educational expenses? 

-The NewLife Insurance Company is offering an insurance policy that will give you and your offspring $18,000 per year forever.  If you require 6% return on investment the how much would you have to pay for the policy?
If in part a. above the cost of the policy was 360,000 what would you expect the interest rate to be for this to be a fail deal?
You're considering to get a loan. Bank A charges 15% annually and Bank B charges 15.25% accrued semi-annually.  Which bank has the lower effective rate of interest?
Payments are made on a 15 year annuity of $1500 at the end of each month.  Calculate the present value if the interest rate is 11% compounded monthly for the first 7 years and 7 percent compounded monthly thereafter.

-MyFriends is an internet company well enough established for the Board of Directors to approve annual dividend of $2.00 per share. 

Given the companies previous performance investors anticipate the Board to increase the dividend at a rate of 5% per year. 

The current interest rate is 10%.

 

If the current market share price is $40 on the stock exchange, would this be a good buy? Why?

 hint. Calculate the share price and compare to $40.

-ABC Inc. has bonds on the market with 15 years to maturity, a YTM of 7% and a a current price of $950.  The bond makes semiannual payments.  What must the coupon rate be on these bonds?