Question : 101.If you deposit $10,000 today in an account that pays : 1325662

 

101.If you deposit $10,000 today in an account that pays 5% interest compounded annually for five years, how much interest will you earn?

a.$2,500.00

b.$2,762.82

c.$3,400.96

d.$12,762.82

102.Mendelson Implements records the following cash flows at the end of each year for a project. If the firm’s discount rate is 11%, what is the value of the project at the end of the last year?

 

YearCash flow

1$794,633

2$542,149

3$836,200

4$716,080

5$520,354

a.$2,547,837

b.$4,200,696

c.$4,293,253

d.$4,657,524

103.Herbilux Botanicals forecasts the following cash flows at the end of each year for a project. If the firm’s discount rate is 9%, what is the present value of the project?

YearCash flow

1$   697,000

2$   631,000

3$   574,000

4$   898,000

5$9,981,000

a.$7,634,980

b.$8,015,517

c.$8,736,914

d.$12,268,998

104.Mendez Implements records the following cash flows at the beginning of each year for a project. If the firm’s discount rate is 11%, what is the value of the project at the end of the last year?

YearCash flow

1$794,633

2$542,149

3$836,200

4$716,080

5$520,354

a.$4,293,253

b.$2,547,837

c.$4,657,524

d.$4,765,511

105.Mayfield Development, LLC forecasts the following cash flows at the beginning of each year for a project. If the firm’s discount rate is 9%, what is the present value of the project?

YearCash flow

1$   697,000

2$   631,000

3$   574,000

4$   898,000

5$9,981,000

a.$7,634,980

b.$8,736,914

c.$9,523,236

d.$12,268,998

106.You’ve just won $1 million dollars in a lottery. For your prize, you may except a $1 million lump sum paid immediately, a constant perpetuity of $80,000 per year (with the first payment arriving in one year), or a stream of cash flows that starts at $45,000 next year and grows at 3.5% per year in perpetuity. If the interest rate is 8%, which of these choices has a higher present value?

a.a $1 million lump sum

b.a constant stream of $80,000 per year in perpetuity

c.a stream that begins at $45,000 and grows at 3.5% in perpetuity

d.all three choices have the same present value

107.A financial advisor recommends saving $1,000,000 for a comfortable retirement. With investment returns of 8%, what is the annual year-end cash flow generated by the $1 million for 25 years, assuming you spend all of the principal and interest?

a.$80,000

b.$86,740

c.$93,679

d.$94,978

108.If you invest $2,500 in a bank account that pays 6% interest compounded monthly, how much will you have in five years?

a.$1,853.43

b.$3,345.56

c.$2,505.20

d.$3,372.13

109.A few years after graduating from college, you decide to get an MBA. This endeavor sets you back $100,000 in loans. Luckily, you have the option to consolidate these loans at 5%. You opt for a 30-year payback period with monthly installments due at the end of each month. What is the monthly payment on the consolidated loan?

a.$536.82

b.$542.10

c.$544.86

d.$3,552.94

110.Your aunt is evaluating her retirement pension. She can retire at age 65 and collect $1,000 per month for the rest of her life. Assume that payments begin one month after her 65th birthday. If your aunt lives to be exactly 80 years old and can earn 7% interest (compounded monthly), what is the equivalent lump sum she would need at retirement to equal the value of the pension?

a.$106,906

b.$111,256

c.$115,313

d.$215,027

 

 

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