XYZ Inc. invested $500,000 to help fund a company expansion project scheduled for five years from now. How much additional money will they have five years from now if they can earn 7% rather than 6% on this money

You would like to give your daughter $70,000 towards her college education 12 years from now. How much money must you set aside today for this purpose if you can earn 8% on your investments?

You own a small machine shop. You would like to save $150,000 to buy new equipment three years from now. The plan is to set aside an equal amount of money each quarter (every three months). How much should the firm save each quarter to achieve this goal if you can earn a 5.8% return?

Tech Inc. has an outstanding 5.5% semi-annual coupon bond with a current market price of $985.00. The bond has a par value of $1,000 and a yield to maturity of 5.76%. How many years is it until this bond matures?

Ray steel company just paid a $10 dividend. If you require a 9% return on this stock, how much will you pay for it:

a) if management wants to increase the dividend by 3% each year indefinitely.

b) if management wants to reduce the dividend by 3% each year indefinitely.

c) if management wants to neither increase nor decrease the dividend indefinitely