Reference no: EM132611433

1. Assume you start collecting all your Starbucks receipts at the beginning of a month and then, adding all you've spent, realize you're daily coffee is costing you $114 per month. Your bank offers a savings account with an interest rate of 1.2%. If, instead of buying that coffee every day, you saved up the money in your bank, what would be the total amount saved after 3 years?

2. You decide to buy a house for a total of $223,877. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is 6% APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much is the TOTAL monthly payment for this mortgage?

3. You decide to buy a house for a total of $262,728. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is 4% APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much will you pay in INTEREST on your very first monthly mortgage payment?

4. When do you have to pay taxes on salvage value?

A. When salvage value is greater than book value

B. When salvage value is less than book value

C. When salvage value is equal to book value

D. You always pay taxes on salvage value

E. You never pay taxes on salvage value

5. Your company is considering an investment that would involve the following initial outlays: cost of equipment: $127,664, installation: $48,528, and change in NOWC: $47,548. The equipment is classified to be depreciated according to the MACRS 3-year table, with the following depreciation schedule: year 1 = 33%, year 2 = 45%, year 3 = 15%, year 4 = 7%. What is the depreciation expense in year 2?