Reference no: EM133526522

Problem I. Kyla wants to have an annuity payment of $800, at the end of each six months. Use the appropriate formula to find how much she should deposit (in $) now at 6% interest, compounded semiannually, to yield this payment for 12 years. (Round your answer to the nearest cent.)

Problem II. Use the appropriate formula to find how much you should deposit now at 8% interest, compounded annually, to yield an annuity payment of $1,700 at the BEGINNING of each year, for 20 years.

Problem III. Apollo Enterprises has been awarded an insurance settlement of $6,000 at the end of each 6 month period for the next 11 years. (Round your answers to the nearest cent.)

1. As the accountant, calculate how much (in $) the insurance company must set aside now at 6% interest compounded semiannually to pay this obligation to Apollo.

2. How much (in $) would the insurance company have to invest now if the Apollo settlement was changed to $3,000 at the end of each 3 month period for 11 years and the insurance company earned 8% interest compounded quarterly?

3. How much (in $) would the insurance company have to invest now if the Apollo settlement was paid at the beginning of each 3 month period rather than at the end?

Problem IV. Calculate the amount financed, the finance charge, and the total deferred payment price (in $) for the following installment loan.

Purchase (Cash) Price	Down Payment	Amount Financed	Monthly Payment	Number of Payments	Finance Charge	Total Deferred Payment Price
$2,700	0	$	$183.69	18	$	$

Problem V. Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,100.

On October 4 they made a payment of $1,400. On October 13 the business borrowed $2,900, and on October 19 they borrowed $4,600. If the current prime rate is 8%, what is the new balance (in $)?

Problem VI. You have a revolving credit account at an annual percentage rate of 18%. Use the average daily balance method to find the new balance given the following statement of account.

STATEMENT OF ACCOUNT Billing cycle: June 1-30
June 1	Previous month's balance	$264.74
June 6	Kim's Paints	54.95
June 12	Payment	112.00
June 15	Biggie Supermarket (credit)	41.47
June 28	Lamont's Bikes	130.98

Problem VII. As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage.

Amount Financed	Interest Rate	Term of Loan (years)	Monthly PI	Annual Property Tax	Annual Insurance	Monthly PITI
$126,700	6.75%	15	$	$2,310	$1,385	$

Problem VIII. Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at 5 ¾ % for 30 years. Use this table and give the total interest as your answer.

Problem IX. As the owner of a business, Avery needs fire insurance. His building is worth $497,000 and the contents are valued at $365,600. His agent placed the building in structural classification A and area rating 4. Use Table 19-4 to calculate his total premium.

Problem X. Jessie is happy with his seven-year-old car, but he is thinking of switching auto insurance carriers. His agent said the car was in model class A and that he would be assigned to driver class 3. For comparison with his current policy, he wants a price quote for 50/100/50 liability coverage, $500 deductible collision and $100 deductible comprehensive. Based on Table 19-6 and Table 19-7, what would be his total premium if he lives in territory 2 and has a rating factor of 1.6?

Problem XI. Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase.

Company	Coupon Rate	Market Price	Time Since Last Interest	Accrued Interest	Commission per Bond	Bonds Purchased	Total Price
Company 1	9.75	102.50	78 days	$	$3.50	15	$

Problem XII. Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.

Company	Number of Shares	Purchase Price	Selling Price	Commissions			Total Cost	Proceeds	Gain (or Loss)
				Buy	Sell	Odd Lot
an audio and video products manufacturer	800	$24.37	$33.25	3%	3%		$	$	$

Problem XIII. Calculate the preferred and common dividend per share (in $) for the company. (If there is no answer, enter NONE.)

Company	Common Stock Shares	Preferred Stock			Dividend	Declared Arrears	Preferred Div./Share	Common Div./Share
		Shares	Div. or Par	Cum.
a personal electronics manufacturer	9,000,000	1,000,000	$100 7%	no	$5,000,000	none	$	$

Problem XIV. Saunders and Flimsy Partnership paid dividends of $0.24 and $0.19 per share last year. If yesterday's closing price was $13.19, what is the current yield on the stock?