Reference no: EM133117945
Question - Present value, future value and interest rate
1. Jose Lopez has $15,000 in a 6-year certificate of deposit (CD) that pays a guaranteed annual rate of 4%. He draws a time line showing when the cash flows will occur.
2. Oliver López deposits $12,000 in a bank account that pays 7% annual interest. He calculates the account balance after 5 years.
3. Carmen Hernández has saved $8,000 for a car deposit. The highest monthly payment she can afford is $455. The loan will have an APR of 11% payable at the end of each month. Determine which is the most expensive car you can buy if you buy it on credit payable over 60 months.
4. Determine the present value of a financial instrument that pays $18,500 in 10 years if instruments of similar risk pay 6% per year.
5. Find the future value (FV) of a $5,000 investment at an interest rate of 10% over 7 years.
6. Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual payments of $15,000 over 8 years.
|
How much money will hedge fund make in fees over the course
: A hedge fund sets its fee at 2% and a 20% carry with an 8% benchmark. How much money will a hedge fund make in fees over the course
|
|
Determine the size of the two replacement payments
: Determine the size of the two replacement payments if interest is 2.4% compounded annually and the focal date is two years from now
|
|
What is meant by actual and perceived independence
: What is meant by actual and perceived independence, and explain why both are important to the auditor
|
|
What is your total profit or loss on your investment
: The option expires today when the value of TJH stock is $42.90. Ignoring trading costs and taxes, what is your total profit or loss on your investment
|
|
Determine the interest rate you will pay
: Determine the interest rate you will pay if you are approved for a loan of $112,000 with annual payments of $15,000 over 8 years
|
|
Make the journal entry to record revenue and gross profit
: Percentage-of-completion method - Penner Builders contracted to build a high-rise for $14,000,000. Make the journal entry to record revenue and gross profit
|
|
What line item amounts related to the lease
: What line item amounts related to the lease would Builders report in its income statement for the year ended December 31, 2021 (ignore taxes)
|
|
What is your estimate of the total misstatement in inventory
: Assume you tested inventory amount totalling $1million and found $8,000 in overstatement. What is your estimate of the total misstatement in inventory
|
|
Post to the ledger accounts
: Karen Noonan opened Marin Cleaning Services Inc. on February 1, 2022. During February, the following transactions were completed: Post to the ledger accounts
|