ques 4,7,10,16,18,20 needed

variCU TITUITO PIVUT IT varura ng ICS VI NUTTUVOJ THU DIANO UVIVUN Page 109 Raymond Chandler novel The High Window, was sold at auction in 2014 for $4,582,500. The coin had a face value of $15 when it was first issued in 1787 and had been previously sold for $430,000 in 1979. At what annual rate did the coin appreciate from its minting to the 1979 sale? What annual rate did the 1979 buyer earn on his purchase? At what annual rate did the coin appreciate from its minting to the 2014 sale? 18. Calculating Present Values (LO2) Suppose you are still committed to owning a $190,000 BMW (see Q Question 9). If you believe your mutual fund can achieve a 12% annual rate of return and you want to buy the car in nine years on the day you turn 30, how much must you invest today? 19. Calculating Future Values (L01) You have just made your first $5,000 contribution to your RRSP. Assuming you earn an 11% rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait ten years before contributing? (Does this suggest an investment strategy?) 20. Calculating Future Values (L01) You are scheduled to receive $15,000 in two years. When you receive it, you will invest it for six more years at 7.1% per year. How much will you have in eight years? 21. Calculating the Number of Periods (L03) You expect to receive $10,000 at graduation in two years. You plan on investing it at 11% until you have $75,000. How long will you wait from now? 21 - ... Chat Reactions Mare Share Screen Settings Participants Start Video ? Type here to search (hp) a. Based upon the $76.04 price, what rate was the yield on the Province of Ontario bond? a b. Suppose that on February 2, 2017, the security's price was $81.00. If an investor had purchased it for $76.04 a year earlier and sold it on this day, what annual rate of return would she have earned? c. If an investor had purchased the security at market on February 2, 2017, and held it until it matured, what annual rate of return would she have earned? 17. Calculating Rates of Return (LO3) The Brasher doubloon," which was featured in the plot of the Raymond Chandler novel The High Window, was sold at auction in 2014 for $4,582,500. The coin Page 169 had a face value of $15 when it was first issued in 1787 and had been previously sold for $430,000 in 1979. At what annual rate did the coin appreciate from its minting to the 1979 sale? What annual rate did the 1979 buyer earn on his purchase? At what annual rate did the coin appreciate from its minting to the 2014 sale? 18. Calculating Present Values (LO2) Suppose you are still committed to owning a $190,000 BMW (see Question 9). If you believe your mutual fund can achieve a 12% annual rate of return and you want to buy the car in nine years on the day you turn 30, how much must you invest today? 19. Calculating Future Values (LOI) You have just made your first $5,000 contribution to your RRSP. Assuming you earn an 11% rate of return and make no additional contributions, what will your account be worth when you retire in 45 years? What if you wait ten years before contributing? (Does this suggest an investment strategy?) 21 ... @@ Start Video Participants Share Screen Chat Reactions Settings More Type here to search O BI a hp a 10. varuratug Rates UE NUUS Uyiruppamy w HUTC TM astus art as a UVUVIE has always performed so profitably. During 2003, Sothebys sold the Edgar Degas bronze sculpture Petit Danseuse de Quartorze Ans at auction for a price of $10,311,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,377,500. What was his annual rate of return on this sculpture? Intermediate (Questions 16-21) 16. Calculating Rates of Return (LO3) On February 2, 2016, an investor held some Province of Ontario stripped coupons in a self-administered RRSP at ScotiaMcLeod, an investment dealer. Each coupon represented a promise to pay $100 at the maturity date on January 13, 2022, but the investor would receive nothing until then. The value of the coupon showed as $76:04 on the investor's screen. This means that the investor was giving up $76.04 on February 2, 2016, in exchange for $100 to be received just less than six years later. a. Based upon the $76.04 price, what rate was the yield on the Province of Ontario bond? b. Suppose that on February 2, 2017, the security's price was $81.00. If an investor had purchased it for $76.04 a year earlier and sold it on this day, what annual rate of return would she have earned? c. If an investor had purchased the security at market on February 2, 2017. and held it until it matured, what annual rate of return would she have earned? 21 Start Video Participants Share Screen Chat Reactions Settings More Type here to search o hating the Number of Periods (L03) At 6.5% interest, how long does it take to double your money? To quadruple it? 8. Calculating Interest Rates (L03) In 2016, the automobile industry announced the average vehicle selling price was $34,958. Five years earlier, the average price was $27,641. What was the annual percentage increase in vehicle selling price? 9. Calculating the Number of Periods (LO3) You're trying to save to buy a new $ 190,000 BMW 3 series sedan. You have $40,000 today that can be invested at your bank. The bank pays 4.8% annual interest on its accounts. How long will it be before you have enough to buy the car? 10. Calculating Present Values (LO2) Normandin Inc. has an unfunded pension liability of $575 million Page 168 that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.8%, what is the present value of this liability? 11. Calculating Present Values (LO2) You have just received notification that you have won the $1 million first prize in Lamarche lottery. However, the prize will be awarded on your 100th birthday (assuming you're around to collect), 80 years from now. What is the present value of your windfall if the appropriate discount rate is 9%? 12. Calculating Future Values (LOI) Your coin collection contains fifty 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2060. assuming they appreciate at a 4.1% annual rate? 21 .. oo Participants Start Video Share Screen Chat Reactions Settings More Type here to search (hp 810 10 1.821 18,400 17 289,715 21,500 15 430.258 6. Calculating Interest Rates (LO3) Assume the total cost of a university education will be $300,000 when your child enters university in 18 years. You currently have $65,000 to invest. What annual rate of interest must yo- earn on your investment to cover the cost of your child's university education? 7. Calculating the Number of Periods (L03) At 6.5% interest, how long does it take to double your money? To quadruple it? 8. Calculating Interest Rates (LO3) In 2016, the automobile industry announced the average vehicle selling price was $34.958. Five years earlier, the average price was $27,641. What was the annual percentage increase in vehicle selling price? 9. Calculating the Number of Periods (L03) You're trying to save to buy a new $ 190,000 BMW 3 series sedan. You have $40,000 today that can be invested at your bank. The bank pays 4.8% annual interest on its accounts. How long will it be before you have enough to buy the car? 10 Colanistine Duncant Volnoc Normandin Tno hos nn unfundar nancinn linbiliter of 6576 millinn 20 .. Start Video . Participants Share Screen Chat Reactions Settings More ype here to search BH ? Maps 90004410301256257255. a 13 51,557 23 14 886,073 18 19 550,164 4. Calculating Interest Rates (L03) Solve for the unknown interest rate in each of the following: Present Value Years Interest Rate Future Value S240 4 $297 360 18 1,080 39,000 19 185,382 38,261 25 531,618 5. Calculating the Number of Periods (L03) Solve for the unknown number of years in each of the following: ) 20 Start Video Participants Share Screen Chat Reactions More Settings pe here to search O Bi Then