Reference no: EM13698149
1. If you have a credit card with 14.4% APR
a) What is your monthly interest rate and what is your annual effective interest rate?
b) If you have an outstanding balance of $1,800 on that card what would be the balance if you skipped 4 months payments (ignore credit card fees and penalties)
2. What is the future worth of a series of equal monthly payments of $5,000 if the series extends over a period of six years at 9% interest compounded?
a) Quarterly
b) Monthly
c) Continuously
3. You borrowed $150,000 with a 30-years payback term and a variable APR that starts at 9% and can be changed every five years
a) What is the initial monthly payment?
b) If, at the end of the five years, the lender’s interest rate changes to 9.75% APR, what will the new monthly payment be?
4. Ryan expects to deposit $1,000 now, $3,000 four years from now, and $1,500 six years from now in an account that is earning 12% per year compounded semi-annually through a company-sponsored saving plan. What amount can he withdraw ten years from now?
5. Atlas Transportation is considering installing temperature logger in all its refrigerated trucks for monitoring temperatures during transit. If the systems will reduce insurance claims by $40,000 per year for 5 years how much should the company be willing to spend now if it uses an interest rate of 12% compounded quarterly
|
Determine the projects after-tax net present worth
: A corporate expects to receive $34,688 each year for 15 years if a particular project is undertaken. There will be an initial investment of $122,261. The expenses associated with the project are expected to be $7,426 per year.
|
|
Best example of public good or quasi-public good
: Which of the following is the best example of a public good (or quasi-public good)?
|
|
What is particular form of money-medium of exchange
: What is the particular form of money (M1,M2, etc.) that would be the smallest measure that includes the type of money described in the article. (For example, if the article is about cash, write "M1." Although all other forms of money include cash, M1..
|
|
Government spending both mandatory and discretionary
: What are the effects of increasing in government spending both mandatory and discretionary spending on US economy forecast ot grow by 1.5%
|
|
What is your annual effective interest rate
: What is your monthly interest rate and what is your annual effective interest rate? What is the future worth of a series of equal monthly payments of $5,000 if the series extends over a period of six years at 9% interest compounded? Ryan expects to d..
|
|
Watch public television without contributing
: Frank was willing to contribute $40 this year to his local public television station. However, after learning that the television station had already met its goal of raising $400,000, he decided not to contribute because he knew he could watch public..
|
|
Contrast pure discount bonds with coupon bonds
: Compare and contrast pure discount bonds with coupon bonds and provide at least one example of such government or corporate bonds that can be bought and sold by investors. Describe the way interest rates are determined for these bonds by using the ap..
|
|
Money plays under the classical macroeconomic model
: Explain the role that money plays under the Classical Macroeconomic Model. As a part of your discussion, include the impact the Quantity Theory of Money and Say’s Law have on this model and state in algebraic terms how the money supply relates to pri..
|
|
Address the term structure of interest rates
: Name and discuss the four major theories that address the term structure of interest rates. In your discussion, indicate the strengths and weaknesses of each of the theories and which theory or theories appear to be the best accepted as explanations ..
|