Reference no: EM132639920

Questions -

Q1. John Bogut just received a signing bonus of $902,900. His plan is to invest this payment in a fund that will earn 9%, compounded annually.

If Bogut plans to establish the AB Foundation once the fund grows to $2,768,111, how many years until he can establish the foundation?

Q2. Chris Bogut just received a signing bonus of $1,086,900. His plan is to invest this payment in a fund that will earn 9%, compounded annually.

If Bogut plans to establish the AB Foundation once the fund grows to $1,986,897, how many years until he can establish the foundation?

Q3. Coronado Co. accepts a note receivable from a customer in exchange for some damaged inventory. The note requires the customer make semiannual installments of $60,900 each for 10 years. The first installment begins six months from the date the customer took delivery of the damaged inventory. Coronado's management estimates that the fair value of the damaged inventory is $758,949.

What interest rate is Coronado implicitly charging the customer? Express the rate as an annual rate but assume semiannual compounding.

Q4. $51,270 receivable at the end of each period for 9 periods compounded at 12%.

Q5. George Finley wishes to become a millionaire. His money market fund has a balance of $81,846 and has a guaranteed interest rate of 10%. How many years must George leave that balance in the fund in order to get his desired $1,073,000?