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Simon recently received a credit card with a 2 1 % nominal interest rate. With the card, he purchased an Apple iPhone 1 1 for
Simon recently received a credit card with a nominal
interest rate. With the card, he purchased an Apple iPhone for
$ The minimum payment on the card is only $ per month.If Simon makes the minimum monthly payment and makes no other
charges, how many months will it be before he pays off the card? Do
not round intermediate calculations. Round your answer to the
nearest whole number.monthsIf Simon makes monthly payments of $ how many months will it
be before he pays off the debt? Do not round intermediate
calculations. Round your answer to the nearest whole number.monthsHow much more in total payments will Simon make under the
$amonth plan than under the $amonth plan? Do not round
intermediate calculations. Round your answer to the nearest
cent.$It is now December t and a jury just found in
favor of a woman who sued the city for injuries sustained in a
January accident. She requested recovery of lost wages plus
$ for pain and suffering plus $ for legal expenses.
Her doctor testified that she has been unable to work since the
accident and that she will not be able to work in the future. She
is now and the jury decided that she would have worked for
another years. She was scheduled to have earned $ in
To simplify this problem, assume that the entire annual salary
amount would have been received on December Her employer
testified that she probably would have received raises of per
year. The actual payment for the jury award will be made on
December The judge stipulated that all dollar amounts are
to be adjusted to a present value basis on December using
a annual interest rate and using compound, not simple, interest.
Furthermore, he stipulated that the pain and suffering and legal
expenses should be based on a December date. How large a
check must the city write on December Do not round
intermediate calculations. Round your answer to the nearest
dollar.Your father is years old and will retire in years. He
expects to live for years after he retires, until he is He
wants a fixed retirement income that has the same purchasing power
at the time he retires as $ has today. The real value of his
retirement income will decline annually after he retires.
Hisretirement income will begin the day he
retires, years from today, at which time he will
receive additional annual payments. Annual inflation is expected
to be He currently has $ saved, and he expects to earn
annually on his savings. How much must he save during each of
the next years endofyear deposits to meet his retirement
goal? Do not round intermediate calculations. Round your answer to
the nearest dollar.$A father is now planning a savings program to put his daughter
through college. She is plans to enroll at the university in
years, and she should graduate years later. Currently, the annual
cost for everything food, clothing, tuition, books,
transportation, and so forth is $ but these costs are
expected to increase by annually. The college requires total
payment at the start of the year. She now has $ in a college
savings account that pays annually. Her father will make six
equal annual deposits into her account; the first deposit today and
sixth on the day she starts college. How large must each of the six
payments beHint: Calculate the cost inflated at for each
year of college and find the total present value of those costs,
discounted at as of the day she enters college. Then find the
compounded value of her initial $ on that same day. The
difference between the PV of costs and the amount that would be in
the savings account must be made up by the father's deposits, so
find the six equal payments that will compound to the required
amount. Do not round intermediate calculations. Round your answer
to the nearest dollar.Quantitative Problem:You need $ to
purchase a used car. Your wealthy uncle is willing to lend you the
money as an amortized loan. He would like you to make annual
payments for years, with the first payment to be made one year
from today. He requires a annual return.$Interest: $Principal repayment: $Quantitative Problem :You plan to
deposit $ per year for years into a money market account
with an annual return of You plan to make your first deposit
one year from today.$$Quantitative Problem :You and your wife
are making plans for retirement. You plan on living years after
you retire and would like to have $ annually on which to
live. Your first withdrawal will be made one year after you retire
and you anticipate that your retirement account will earn
annually.$$Quantitative Problem:Bank lends funds
at a nominal rate of with payments to be made semiannually. Bank
requires payments to be made quarterly. If Bank would like to
charge the same effective annual rate as Bank what nominal
interest rate will they charge their customers? Do not round
intermediate calculations. Round your answer to three decimal
places.Quantitative Problem :You deposit $
into an account that pays per year. Your plan is to withdraw
this amount at the end of years to use for a down payment on a
new car. How much will you be able to withdraw at the end of
years? Do not round intermediate calculations. Round your answer to
the nearest cent.$Quantitative Problem :Today you invest
a lump sum amount in an equity fund that provides an annual
return. You would like to have $ in years to help with a
down payment for a home. How much do you need to deposit today to
reach your $ goal? Do not round intermediate calculations.
Round your answer to the nearest cent.$Quantitative Problem:You own a security
that provides an annual dividend of $ forever. The securitys
annual return is What is the present value of this security?
Round your answer to the nearest cent.$Quantitative Problem:You own a security
with the cash flows shown below.If you require an annual return of what is the present
value of this cash flow stream? Do not round intermediate
calculations. Round your answer to the nearest cent.$
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