Finance Week 4 Sample Questions witg Step by Step Solution

Question 11.If you can double your money in 14 years, what is the implied annual rate of interest,given that compounded semi-annually? Note: give your answer in percentages. Note: Donot put % sign in your answer. Simply write the number in percentages in the answerbox.Question 21. What is the future value of quarterly payments of $674 for 18 years at 7 percent?Question 31. If you can double your money in 17 years, what is the implied annual rate of interest,given that compounded in quarterly? Note: give your answer in percentages. Note: Donot put % sign in your answer. Simply write the number in percentages in the answerbox.Question 41. What is the future value of annual payments of $7,466 for 14 years at 6 percent?Question 51. What should you be willing to pay in order to receive $549 annually forever, if yourequire 5% per year on the investment?Just enter the number up to 2 decimal points. Do not enter $ in the answer box.Question 61. How many years it will take to grow your money from $3,428 to $6,835 if you can earnan interest of 6% compounded quarterly? Note: Do not write “years” in your answer.Simply write the number in the answer box.Question 71. Kelly starting setting aside funds 8 years ago to buy some new equipment for her firm.She has saved $1,515 each quarter and earned an average rate of return of 9 percent.How much money does she currently have saved for this purpose?Question 81. How many years it will take you to double your money if you can earn 13% each year,given that compounding is quarterly? Note: Do not write “years” in your answer. Simplywrite the number in the answer box.Question 91. Assume interest rate of 5%. A company receives cash flows of $106,444 at the end ofyears 4, 5, 6, 7, and 8, and cash flows of $297,138 at the end of year 10. Compute thefuture value of this cash flow stream.Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimalpoints.Question 101. What is the future value of $632 invested for 12 years at 10% if interest is compoundedquarterly? Note: Do not put $ sign in your answer. Simply write the number in the answerbox.Question 111. If the effective rate is 12%. What is the nominal rate if compounding is daily. Do notenter the symbol % in your answer. Simply enter the answer in percentages rounded offto two decimal points.Question 121. Today, you are purchasing a $3,881 10-year car loan at 13 percent. You will pay annuallyat the end of each year. What is the amount of each payment?Question 131. What is the future value of $10,360 for 14 years at 7 percent if interest is compoundedsemi-annually? Note: Do not enter “$” in your answer. Simply write down the numberthat you get as your answer.Question 141. Gertrude Carter and Co. has an outstanding loan that calls for equal annual payments of$14,903 over the 10-year life of the loan. The original loan amount was $100,000 at anAPR of 8 percent. How much of the third payment is interest?Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimalpoints.Question 151. In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years.Compute the balance remaining at the end of 5 years.Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enterthe answer rounded off to two decimal points.Question 161. How much do you need to invest today in order to have $8,048 at the end of 6 years ifyou are sure to earn an interest at the rate of 8%, if interest is compounded quarterly?Note: Do not put $ sign in your answer. Simply write the number in the answer box.Question 171. How much do you need to invest today in order to have $10,016 at the end of 13 years ifyou are sure to earn an interest at the rate of 4%? Note: Do not put $ sign in youranswer. Simply write the number in the answer box.Question 18Say, you deposit $2,035 in a bank for 15 years. What is the amount you will have in the bankat the end of 15 years if interest of 5 % compounded monthly for first 7 years and interest of10 % compounded quarterly for the remaining years? Note: Do not put $ sign in youranswer. Simply write the number in the answer box.Question 191. What is the future value of $4,515 invested for 18 years at 19% if interest iscompounded semi-annually? Note: Do not put $ sign in your answer. Simply write thenumber in the answer box.Question 201. Barrett Pharmaceuticals is considering a drug project that costs $177,695 today and isexpected to generate end-of-year annual cash flows of $14,677, forever. At whatdiscount rate would Barrett be indifferent between accepting and rejecting the project?Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.Question 211. How many years it will take you to quadruple (means 4 times) your money if you canearn 7.14% each year? Note: Do not write “years” in your answer. Simply write thenumber in the answer box.1 pointsQuestion 221. What is the future value of $4,195 invested for 14 years at 13% if interest iscompounded semi-annually (twice a year)? Note: Do not put $ sign in your answer.Simply write the number in the answer box.Question 231. Assume interest rate of 6%. Suppose that you receive $97,408 at the end of each yearfor 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute thepresent value.Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimalpoints.Question 241.Say, you deposit $4,381 in a bank for 16 years. What is the amount you will have in thebank at the end of 16 years if interest of 4 % for first 7 years and interest of 6 % for theremaining years? Note: Do not put $ sign in your answer. Simply write the number in theanswer box.Question 251. If you can triple your money in 20 years, what is the implied rate of interest? Note: Donot put % sign in your answer. Simply write the number in percentages in the answerbox..Question 261. What is the effective rate of 16% compounded monthly?Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded offto two decimal points.Question 271. How much do you need to invest today in order to have $1,829 at the end of 7 years ifyou are sure to earn an interest at the rate of 14%, if interest is compounded monthly?Note: Do not put $ sign in your answer. Simply write the number in the answer box.Question 281. The ABC Company is considering a new project which will require an initial cashinvestment of $12,842. The projected cash flows for years 1 through 4 are $6,128,$5,264, $8,811, and $4,632, respectively. If the appropriate discount rate is 12%,compute the NPV of the project.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.Question 291. The Perpetual Life Insurance Co is trying to sell you an investment policy that will payyou and your heirs $14,536 per year forever. Suppose the Perpetual Life Insurance Co.told you the policy costs $169,503. At what interest rate would this be a fair deal? Justenter the number in percentages up to 2 decimal points. Do not enter % in the answerbox.Question 301. How many months it will take to grow your money from $3,711 to $6,515 if you can earnan interest of 19% compounded monthly? Note: Do not write “months” in your answer.Simply write the number in the answer box.Question 311. How many years it will take to grow your money from $4,118 to $6,536 if you can earnan interest of 6% compounded monthly? Note: Do not write “years” in your answer.Simply write the number in the answer box.Question 321. If you receive $274 at the end of each year for the first three years and $956 at the endof each year for the next three years. What is the present value? Assume interest rate is7%.Hint: This is an uneven cash flow problem. Use the CF function and solve for NPV to get theanswer.Just enter the number up to 2 decimal points. Do not enter $ in the answer box.Question 331. Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000,compute the Interest paid during the 6th year.Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.Question 341. Assume interest rate of 4%. A company receives cash flows of $559 at the end of year 5,$242 at the end of year 7, and $962 at the end of year 10. Compute the future value ofthis cash flow stream.Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimalpoints.Question 351. If you put $700 in a savings account with a 10% nominal rate of interest compoundedmonthly, what will the investment be worth in 21 months (round to the nearest dollar)?a. $828b. $770c. $833d. $1,176e. $827Question 361. The ABC Company is considering a new project which will require an initial cashinvestment of $5,268. The project will produce no cash flows for the first 5 years. Theprojected cash flows for years 6 through 9 are $6,362, $4,627, $4,076, and $6,748,respectively. If the appropriate discount rate is 4%, compute the NPV of the project.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more