Reference no: EM131000372
1. Future Value Compute the future value in year 9 of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 using a 10 percent interest rate. (LG5-1)
2. Future Value of an Annuity What is the future value of a $900 annuity payment over five years if interest rates are 8 percent? (LG5-2)
3. Present Value Compute the present value of a $2,000 deposit in year 1 and another $1,500 deposit at the end of year 3 if interest rates are 10 percent. (LG5-3)
4. Present Value of an Annuity What's the present value of a $900 annuity payment over five years if interest rates are 8 percent? (LG5-4)
5. Present Value of an Annuity Due If the present value of an ordinary, 6-year annuity is $8,500 and interest rates are 9.5 percent, what's the present value of the same annuity due? (LG5-6)
6. Effective Annual Rate A loan is offered with monthly payments and a 10 percent APR. What's the loan's effective annual rate (EAR)? (LG5-7)
7. Loan Payments You wish to buy a $25,000 car. The dealer offers you a 4-year loan with a 9 percent APR. What are the monthly payments? How would the payment differ if you paid interest only? What would the consequences of such a decision be? (LG5-9)
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Estimate the cost of the inventory destroyed
: On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation.
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What would the value of the withdrawals be equal to
: You invest $70,000 in a savings account which offers you an interest of 8%. After 10 years you decide to withdraw equal amounts for the next 15 years on a monthly basis. What would the value of the withdrawals be equal to?
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Show how his budget constraint changes
: Originally when he could work as many hours as he wanted at a wage w, Roy chose to work seven hours a day. The employer now offers him w for the first 8 hours in a day and an over-time wage of 1.5w for every hour he works beyond a minimum of 8 hours...
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Monopolistically competitive firms-what are the measures
: We’ve seen that monopolistically competitive firms will try to differentiate their products in order to eliminate substitutes. Are there comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of ..
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Determining the future value of an annuity
: What is the future value of a $900 annuity payment over five years if interest rates are 8 percent? (LG5-2)
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What is the companys gross profit ratio
: The following information is available from the records of the company's periodic inventory system: beginning inventory, $150,000; purchases and net sales from the beginning of the year through the date of the flood, $450,000 and $700,000, respective..
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Calculate the electric flux through the plane
: An electric field with magnitude E0 = 7 V/m is passing through a leaning plane with length L =2 m and width w = 6.7 m. Theta =67. Calculate the electric flux through the plane in Nm2/C.
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What aspects of the stamp model do you see
: What aspects of the STAMP model do you see represented within the accident causation management system for the chemical manufacturing sector of industry
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Rate of return for investment
: Assume that at the beginning of the year, you purchase an investment for $5,500 that pays $110 annual income. Also assume the investment's value has increased to $6,400 by the end of the year. What is the rate of return for this investment?
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