Reference no: EM132953741
1. What is the future value of a five-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate?
2. What is the present value of a $100 lump sum to be received in five years if the opportunity cost rate is 10 percent?
3. What is the future value of a $100 lump sum invested for five years in an account paying 10 percent interest?
4. You buy a six-year, 8 percent savings certificate for $1,000. If interest is compounded annually, what will be its value at maturity?
5. You buy a six-year, 8 percent savings certificate for $10,000. If interest is compounded semiannually, what will be its value at maturity? Explain the effect that cause the ending balance to either increase or decrease
6. Discuss the impact on the present value (PV) of a future lump sum as either the discount rate or the number of compounding periods per year increases.
7. An investment opportunity promises a stated interest rate of 6 percent, with semiannual compounding. Compute the effective annual rate, and indicate whether or not the EAR is less or greater
8. You have been selected by the Board of Directors of Triangle Pediatrics as the CEO of this multi-clinic's organization. Upon review of the Financials, you realized the clinic has $ 300,000.00 in a checking collecting near zero interest. You have multiple investment alternatives that
pay interest as indicated in a. through e. below. Which alternative will yield the most money at the end of two year?
a. 10 percent interest, compounded annually
b. 9.9 percent interest, compounded semiannually
c. 9.9 percent interest, compounded monthly
d. 9.5 percent interest, compounded quarterly
e. 9 percent interest, compounded daily
9. You received a pre-approved credit card from HSBC Bank, LLC. The bank quoted APR is 18%. Monthly payments are required. What is the actual interest rate you are paying on such a credit card per month? What is the EAR (effective annual rate)?
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Determine what is expected return after one year
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Discuss the impact on the present value
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Find the historical volatility in terms of annualized
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What is the American Opportunity credit they can claim
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What is the future value of a five-year ordinary annuity
: What is the future value of a five-year ordinary annuity with annual payments of $200, evaluated at a 15 percent interest rate
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Determine effect on the company total net operating income
: A customer has asked Does Corporation to supply 6,000 units of product Y19, with some modifications, Determine effect on the company total net operating income
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