Reference no: EM132976711

Questions - Financial Management accounting

Q1. You are saving to buy a computer for $93,100. You have 35,000 today that can be invested in your bank at 15%per annum. How long will it be before you have enough money to buy the computer.

Q2. Matthew invested $5000 in mutual fund in ten years her investment had grown to $15,529.24. What annual rate of return did Matthew earn over this 10 year period?

Q3. You purchased a parcel of land for $100,000.If you expected a 12% annual rate of return on your investment, how much will you sell the land for in 10 years?

Q4. Anne-Marie is planning for her daughters university education in seven years time. She estimated that the university education will cost $955,000. How much should she invest each year for the next seven years to achieve this goal if interest rate is 15%?

Q5. You purchased an annuity that guarantees payments of $6,000.00 a year in perpetuity. How much did you pay if the annual interest rate is 8%?

Q6. James brown is preparing for his son's university education. His bank has agreed to lend him $70,000 on the first day of each year for the next four years. The annual interest rate is 10% compounded yearly. If he received the first payment on Jan 1,2006 and his son will graduate on December 31,2009, what will be the amount James Owens the bank on that date?

Q7. A $250,000 loan obtained today is to be repaid in equal annual installments over the next five years started at the end of this year. The annual interest rate is 18%, compounded annually.

A. What is the annual payment that will completely amortize the loan in 5 years?

B. Prepare the amortization schedule

C. How much interest is paid over the life of the loan?

D. What percentage of the payment made at the end of the year 3 is repayment of capital?

Q8. Stephen bought a car for $1,600,000 and the terms are 15% down payment, the balance to be paid off over 8 years at a rate of 9% on the unpaid balance. What are the 8 equal payments?

Q9. Millicent is planning to travel to the United states of America in 3 years time. She estimated that her vacation would cost $1,236,000. Given the existing interest rate of 6%, how much money should she invest now?