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1. You are scheduled to receive $20,000 in two years. When you receive it, you will invest it for six more years at 8.4% per year. How much will you have in eight years? (Question #19 from page 143 of your text) 2. You expect to receive $10,000 in two years. You plan on investing

Review and explain the various forms of Time Value of Money. Has this topic changed your thinking about money? Discuss why or why not.

Please explain: – future value of money – present value of money – future value of annuity – annuity – present value of annuity

1) The principal differences between a forward contract and a future contract include all of the following EXCEPT: -A future contract is standardized as to size and terms -A future contract is only good on agricultural commodities -There is an active secondary market in future contracts -Forward contracts can be specifically designed to fit the

Tips and Ideas on where FORD

Friday, 27 February 2015 by

Tips and Ideas on where FORD needs improvisation.

You charged $2400 on your credit card for holiday gifts. Your credit card company charges you 8% annual interest, compounded monthly. If you make the minimum payments of $75 per month, how long will it take (to the nearest month) to pay off your balance? Answer 80 months 48 months 24 months 36 months

The Daily Tribune is performing an impairment test of its printing press as of December 31, 200X, and estimates that the press will generate net cash flows of $8,000 per year for the next 4 years. The Daily Tribune anticipates a 6% discount rate. Based on discounted future cash flows, which of the following is

Charles Carr borrowed $3500 to consolidate his debts. Since Charles had an excellent credit rating, he was able to borrow at a 12% effective annual rate. Charles is required to make monthly payments. Charles will make equal payments for the next 36 months. Which one of the following values is closest to his monthly payments?

A company has announced the growth rate of its dividend going forward will be 2% annually forever. The dividend in year 4 will be $3.00. The discount rate on the stock is 10%. What will the stock price be in year 18?

You deposit $300 today, $500 one year from now, and $600 four years from now into an account that earns 6% compounded annually. How much money will you have 9 years from now? $2,106 $1,822 $2,292 $1,871 $ 1,181 $2,025

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