Reference no: EM131292220
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Assignment 5.2: Time value of money. Computational assignment
Suppose you are planning to purchase a new car, 5 years from today, at an expected price of 28,000 dollars, how many dollars do you need to put into an account today, if the annual interest rate to be paid on the account is 8.0 percent per year?
Suppose that you deposit 25 dollars in an account that pays 10.0 percent per year. How much will be in that account at the end of 30 years, if interest is compounded annually?
Suppose that you have an outstanding balance of $425 on your credit card. The credit card company charges a rate of 35.0% per year and interest is compounded monthly. If you do not make any payments, how much will you owe at the end of 3 years?
You have a dream of owning a Lamborghini. Towards that goal, you begin saving today, by opening an account that pays 15 percent per year, compounded monthly. If you intend to have $85,000 saved in this account by the time of purchase, 25 years from today, how much do you need to deposit as a single lump sum in the account today?
Ariana wants to go on a vacation to Bahia, Brazil. The anticipated cost of the trip will be $4,000.
i) If she puts $3,500 into a special savings account today, that pays 14.0% interest compounded annually, how many years will it take before she has enough money for the trip?
ii) How many years will it take if interest is compounded daily?
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Horizontal model to record payment of semiannual interest
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What is the return expected on this investment measured
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: At the close of its first year of operations, December 31, 2017, Ming Company had accounts receivable of $1,620,000, after deducting the related allowance for doubtful accounts. What should the company report on its balance sheet at December 31, 2017..
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Time value of money
: Suppose you are planning to purchase a new car, 5 years from today, at an expected price of 28,000 dollars, how many dollars do you need to put into an account today, if the annual interest rate to be paid on the account is 8.0 percent per year? Supp..
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In preparing its budget proposals
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: Assume that you just won $30 million in the Florida lottery, and hence the state will pay you 20 annual payments of $1.5 million at the end of each year. If the rate of return on securities of similar risk to the lottery earnings (e.g., the rate on 2..
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: Cool Pools, a manufacturer of above ground pools, began operations on January 1 of the current year. During this time, the company produced 45,000 units and sold 44,000 units at a sales price of $60 per unit. what is net income using variable costing..
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