1. What would you consider your special qualifications to be? Why are you interested in pursuing the MBA degree? What do you propose to do with your advanced degree professionally? ?
2. Cardi Life insurance offers a perpetuity that pays equal payments once a year. If the interest rate on this contract stands at 11% APR, and the contract is valued today at $458,000, how much would the yealry payment be?
3. What is constitutive relation between risk and expected rate of return? Add examples for better clarity. Provide your explanation.
4. A farmer meets his short-term capital needs by establishing a line of credit and borrowing as follows. All the borrowed money plus interest is paid back on August 1 when the crop is sold. Calculate the total amount of interest paid, assuming a 5% annual interest rate.
March 1 = $35,000
April 1= $17,000
May 1 = $8,000
June 1 = $25,000