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What is the future worth of the account on July 1, 2024, if the balance was zero before the first deposit and no withdrawals are made?
A family starts an education fund for their son Patrick when he is 8 years old, investing $150. What is the fund's future worth when Patrick is 18?
What is the future value of all the costs of owning and operating this machine if the nominal interest rate is 7.2%?
The machinery has a salvage value of 5% of its initial cost. Interest is 10%. What is the future worth of cost of the machinery?
What is the future worth of her IRA at age 65 if she makes annual investments of $2000 into the fund beginning on her 25th birthday?
What must amount of remaining equal end-of-year deposits be, to ensure that $1 million is available on schedule for Construction Engineering Technology Program?
After receiving an inheritance of $25,000 on her 21st birthday, Ayn deposited the inheritance. What was the future worth of Ayn's deposits on her 56th birthday?
The Afar Jewel Mining Company has just issued a 0% coupon bond priced at $423. If the bond is bought today and in 2 years is sold. determine the rate of return.
What is the rate of return for the following project? It costs $300,000 to start and returns $45,000 the first year, with a $5000 increase each year thereafter.
Each year, the company pays dividends of $.75. After holding the stock for 3 years, the investor sells it for $30. What is the IRR for this investment?
Develop the costs and benefits to compare owning a car versus depending on public transit, friends, and/or a bicycle.
Calculate the equivalent uniform monthly cost of leasing the car. The salesperson probably does not have the answers to many of these questions.
Develop a choice table for nominal interest rates from 0% to 50%. (You do not know what the reader's interest rate is.)
What are some of the reasons that would make leasing more desirable than is indicated in (a)?
The system will have no salvage value. What roots are there for the PW equation? Is there a meaningful IRR? Is the third dragline economically attractive?
A car dealer is offering a $1500 rebate or financing at 2% APR over 36 months. What is the effective interest rate for the loan?
A car dealer is offering choice between $1500 rebate or 0% financing over 24 months. A minimum down payment of 20% is required. What is effective interest rate?
You can either pay $800 cash now or you can make end-of month payments of $100, 95, 90, 85, . . . , 45. What is the effective annual rate for this payment plan?
Delta Engineering pays $2500 quarterly for their errors and omissions insurance. What effective annual interest rate are they paying?
Delta Engineering can buy a computer for $2200 and sell it at the end of year. What effective annual interest rate are they paying if they lease the computer?
If paid semiannually, $750 is added to each payment. If the installment plan is chosen, what is the effective annual rate being paid on the loan?
This is also the salvage value if the system was purchased originally. What is the effective annual rate for leasing the computer?
Nearly identical condominiums are selling for $33,000. What is the annual payment and what is the true rate for the loan?
A car dealer offers a $1500 rebate if you pay cash for a $9500 car you are considering. What is the effective annual rate for the dealer's car loan?
The bank requires you to refinance the loan in 5 years by paying it off with a balloon payment. What interest rate are you paying?