Problem Assignment: Time Value of Money
1 If you deposit $15,000 today and earn 8% annual interest, how much will you have in 9 years?
2 Tiffany will receive a graduation gift of $10,000 from her parents in 3 years. If the discount rate
is 7%, what is this gift worth today? 
3 What is the present value of a 20-year ordinary annuity of $30,000 using a 6% discount rate?
4 You deposit $5,000 in an account that pays 8% interest per annum. How long will it take to double your money?
5 The Johnsons have $60,000 to use as a down-payment on a house, and they want to borrow $240,000
from the bank. The current mortgage interest rate is 5%. If they make equal monthly payments for 30 years, 
how much will the monthly payment be?
6 Tim paid $250 per month into his 401K retirement plan. After 30 years, he had accumulated $500,000. What
average annual rate of interest had he earned over the 30 years?
7 Charlotte's firm had sales of $525,000 in the year 2001. By 2012, sales had increased to $1,200,000. What was 
the average annual rate of increase?
8 Alan had saved up $252,000. How much more must he save each year over the next 20 years in order to have a
total of $1 million? Alan earns 5% interest, compounded annually. Assume that the amount to be saved and invested each year is at the END of the year. 
Remember to show all investments as negative numbers and the amound to be reaped as positive. 
PV Rate NPER PMT FV




AFTER PAYMENT ENTER PASSWORD : "SHIV" TO UNLOCK THE SOLUTION


Comments

Post a Comment

Popular posts from this blog

ACT 325 Portfolio Project Description

ACT 325 Portfolio Project Description Your portfolio project is due by the end of Week 8. Please complete the following seven problems based on the serial problem presented in the textbook beginning with Chapter 13. You are welcome to use the excel spreadsheet or the working papers to create your answers. Please make sure to cite all sources that support your overall conclusions. You should paste any required Excel tables and type your answers into a Microsoft Word document, clearly labeling label each problem. Problem 1 Santana Rey created Business Solutions on October 1, 2011. The company has been successful and Santana plans to expand her business. She believes that an additional $86,000 is needed and is investigating these funding sources. a. Santana's sister Cicely is willing to invest $86,000 in the business as a common shareholder. Since Santana currently had about $129,000 invested in the business, Cicely's investment will mean that Santana will maintain about...
Read more

Cost Management: A Strategic Emphasis

Image
Title: Cost Management: A Strategic Emphasis Author: Blocher, Stout & Cokins ISBN: 978-0-07-352694-2 Publisher: McGraw-Hill/Irwin Application of Factory Overhead Tomek Company uses a job costing system that applies factory overhead on the basis of direct labor-hours. The company’s factory overhead budget for 2010 included the following estimates: Budgeted total factory overhead $568,000 Budgeted total direct labor-hours 71,000 blo26940_ch04_091-126.indd 112 blo26940_ch04_091-126.indd 112 6/9/09 2:23:01 PM 6/9/09 2:23:01 PM Confirming Pages Chapter 4 Job Costing 113 At the end of the year, the company shows these results: Actual factory overhead $582,250 Actual direct labor-hours 71,500 The following amounts of the year’s applied factory overhead remained in the various manufacturing accounts: Applied Factory Overhead Work-in-process inventory $139,000 Finished goods inventory 216,840 Cost of goods sold 200,160 Required 1. Compute the firm’s predet...
Read more
Image
A firm has common stock of 95, paid-in surplus of 190, total liabilities of 400, current assets of 450, and fixed assets of 580. What is the amount of the shareholders' equity?   Jake owns The Corner Market which he is trying to sell so that he can retire and travel. The Corner Market owns the building in which it is located. This building was built at a cost of $1,200,000 and is currently appraised at $1,430,000. The counters and fixtures originally cost $665,000 and are currently valued at $407,000. The inventory is valued on the balance sheet at $357,000 and has a retail market value equal to 1.2 times its cost. Jake expects the store to collect 97 percent of the $181,200 in accounts receivable. The firm has $10,800 in cash and has total debt of $1,430,000. What is the market value of this firm?    Jensen Enterprises paid $460 in dividends and $585 in interest this past year. Common stock increased by $255 and retained earnings decreased by $120. What is the net i...
Read more