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1. The Wool Co. is considering the purchase of some new equipment. The commercial-loan quote consists of a monthly payment of $3,750 for 5 years at 6.5 percent interest per year. What is the purchase price of the equipment?
A. $15,583.80
B. $18,449.12
C. $56,373.62
D. $191,657.55
E. $138,617.88
2. Your grandfather started his own business 45 years ago. He opened a savings account at the end of his sixth month of business and started contributing $x from then on every six months. His savings account has paid an average interest rate of 6 percent per year. Today, his account is valued at $133,004.67 How much did your grandfather save every six months?
A. $250 B. $300 C. $350 D. $400 E. $450
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You are shopping for new tires for your car and find the following choices: a Dunlop tire costs $40 but will last only a 1 year; a Pirelli tire costs $6 and will last 2 years: a Goodyear tire costs $80 and will last 3 years; and a Michelin tire costs..
Suppose that all capital gains are taxed at a 25% rate and that the dividend tax rate is 50%. Arbuckle Corporation is currently trading for $30 and is about to pay a $6 special dividend. Absent any other trading frictions or news, what will its share..
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