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If the first prize is awarded 1 year after the initial investment, find the number of years for which the prize can be awarded before the fund falls below $500.
Calculate the increased monthly repayments needed in the case when (a) the interest rate rises to 10% (b) the period of repayment is reduced to 20 years.
Calculate the total amount saved on the assumption that the money is transferred to a higher-interest account at the earliest opportunity.
Thereafter sales are predicted to rise at a constant rate of 4% each month. Estimate total sales for the next 2 years (including the first January).
Oil is currently extracted at an annual rate of 45.5 billion units and this is set to increase by 2.6% a year. After how many years will oil reserves run out?
The bank generously agrees to this, but insists that it should be repaid by 12 monthly instalments and charges 1% interest. Determine the monthly repayment.
Determine the amount saved after 10 years. After how many years does the amount saved first exceed $20 000?
A department store charges interest on any outstanding debt at end of each month. Plot graph of APR against monthly rate and comment briefly on its basic shape.
It produces a return of $40 000 at the end of year 1 and $30 000 at the end of year 2. Find the exact value of the internal rate of return.
What is the maximum amount that the firm should pay for the machine if it is not to suffer a net loss as a result of this investment?
Which of these projects would you invest in if the market rate is 5% compounded annually?
Calculate the internal rate of return. Would you advise someone to invest in this business if the market rate is 6% compounded annually?
Determine the present value of an annuity that pays out $100 at the end of each year for 5 years.
Assuming that the bond currently has 3 years left before redemption and that prevailing interest rate is 8% compounded annually, calculate its present value.
Estimate the IRR to the nearest percentage. Would you recommend that someone invests in this project if the prevailing market rate is 8% compounded annually?
Find the present value of an annuity that yields an income of $2000 at the end of each month for 10 years, assuming that interest rate is 6% compounded monthly.
Determine the monthly repayments needed to repay a $500 000 loan that is paid back over 25 years when the interest rate is 7.25% compounded annually.
A firm's annual sales rise from 50 000 to 55 000 from one year to the next. Express the rise as a percentage of the original.
The GNP of a country has increased by 63% over the past 5 years and is now $124 billion. What was the GNP 5 years ago?
As a result of a modernization programme, a firm is able to reduce the size of its workforce by 24%. How many people did it employ before restructuring?
What is the new sale price? By what percentage can the dealer now reduce the price before making a loss?
Describe the effect on the demand curve due to an increase in the price of substitutable goods, the price of complementary goods, and advertising expenditure.
Compare and Contrast traditional economies, command economies, and market economies in a 500-word essay using the text as one source.
Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.
How is Jason's target market more or less attractive than other markets JCPenney serves? What do you think Jason should do concerning his decision?