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You have $30,400 to invest

Tuesday, 09 September 2014 by

You have $30,400 to invest, and would like to receive $40,000 in 5 years. What interest rate do you need to accomplish this? a) 8.23% b) 6.87% c) 5.64% d) 10.56 You are purchasing a home. You are scheduled to make 30 annual installments of $12,000 per year, with no required down payment. Given a

1. An investor deposits $50,000 today in an interest bearing account. The account pay 7% interest annually, and the investor expects to withdraw the principal plus interest at the end of 5 years. How much would the investor accumulate by the end of 5 years if interest is compounded monthly? 2. You plan to deposit

Explain whether the following statement is true or false: $100 a year for 10 years is an annuity, but $100 in year 1, $200 in year 2, and $400 in years 3 through 10 does not constitute an annuity. However, the second series contains an annuity.

Find the future value of an annuity if you invest $1,550 annually for 5 years at 11.5% compounded annually.

A company has a capital structure that consists of 50 percent debt and 50 percent equity. Which of the following statements is most correct? a. The cost of equity financing is greater than or equal to the cost of debt financing. b. The WACC exceeds the cost of equity financing. c. The WACC is calculated

1.Jane purchased an annuity contract that pays her $800 per month. The annuity cost her $60,000 and it has an expected return of $100,000. How much of each monthly annuity payment is includible in jane’s gross income? 2. Sam owes Bob $8,000. Bob cancels (forgives) the debt. The cancellation is not a gift and Sam

1) Amstop Company issues $20,000,000 of 10-year, 9% bonds on March 1, 2007 at 97 plus accrued interest. The bonds are dated January 1, 2007, and pay interest on June 30 and December 31. What is the total cash received on the issue date? 2) On January 1, 2007, Bleeker Co. issued eight-year bonds with

1) Paul Parent is evaluating investment alternatives for saving for his infant daughters college education. He has estimated that he will need $225,000 upon her graduation from high school in 18 years. Paul has the following options: 1. Locking in an 8 percent investment with a lump sum payment today 2. Earning a 9 percent

Bush Corporation signed a lease for equipment from EZ Leasing Company on January 1 20X2, for a period of ten years at $40,000 per year, including insurance of $3,000 and taxes of $2,000 per year. The equipment had a useful life of fifteen years. At the end of the lease, Bush will have the option

What is the Present Value of the following annuities? 1. $2,500 a year for 10 years discounted back to the present at 7 percent. 2. $70 a year for 3 years discounted back to the present at 3 percent. 3. $280 a year for 7 years discounted back to the present at 6 percent 4.

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