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Questions -
Q1. An accounting firm will need $ 17,000 in 5 years to replace your computer system. What periodic deposits in a repayment fund you pay Quarterly interest at an annual rate of 9% will achieve that goal?
Q2. To buy a boat in 2 years, the Higgins family plans to save $ 200 a month on an account that pays 12% interest, compounded monthly.
a. Find the value of the account in 2 years.
b. Find the single deposit in that account that would give you the same future value
Q3. I have a deal for you! If you lend me $ 100,000 today, I promise to refund you in twenty-five annual installments of $ 5,000, beginning five years from today (that is, my first payment is five years from today). You can win a 6% on your investments. Can you lend me the money? and because?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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