Question

A car was valued at $42,000 in the year 1990. The value depreciated to $15,000 by the year 2002.

A) What was the annual rate of change between 1990 and 2002?
*Round the rate of decrease to 4 decimal places.*

B) What is the correct answer to part A written in percentage
form?

C) Assume that the car value continues to drop by the same
percentage. What will the value be in the year 2005 ?*Round to
the nearest 50 dollars.*

Answer #1

In the year 1985, a house was valued at $119,000. By the year
2005, the value had appreciated exponentially to $145,000. What was
the annual growth rate between 1985 and 2005? (Round your answer to
two decimal places.)
__________ %
Assume that the value continued to grow by the same percentage.
What was the value of the house in the year 2010? (Round your
answer to the nearest dollar.)
$__________

You are going to buy a car that costs $28,000. You have a
trade-in valued at $2000 and will finance the remaining cost of the
car, you will take out a 4 year loan with an interest rate of
4.36%. What will your monthly payment be? (Enter only numbers and
decimals in your response. Round to 2 decimal places.)
You are going to buy a car that costs $28,000. You have a
trade-in valued at $2000 and will finance the...

Jones June Bee's is currently unlevered with assets valued at
$10,000. The company is considering changing its capital structure
to 40% debt / 60% equity. If the company's EBIT is $4000, its cost
of debt is 5%, and its tax rate is 35%, what is the levered ROE?
Assume that the value of the firm does not change with the
leverage.
Please answer using percentage format and round the nearest whole
number (for example if your answer is 25%, enter...

Jan sold her house on December 31 and took a $15,000 mortgage as
part of the payment. The 10-year mortgage has a 12% nominal
interest rate, but it calls for semiannual payments beginning next
June 30. Next year Jan must report on Schedule B of her IRS Form
1040 the amount of interest that was included in the two payments
she received during the year.
a. What is the dollar amount of each payment Jan receives? Round
your answer to...

Jan sold her house on December 31 and took a $15,000 mortgage as
part of the payment. The 10-year mortgage has a 11% nominal
interest rate, but it calls for semiannual payments beginning next
June 30. Next year Jan must report on Schedule B of her IRS Form
1040 the amount of interest that was included in the two payments
she received during the year.
a. What is the dollar amount of each payment Jan receives? Round
your answer to...

(Bond valuation) You own a bond that pays $120 in annual
interest, with a $1,000 par value. It matures in 15 years. Your
required rate of return is 10 percent.
a. Calculate the value of the bond.
b. How does the value change if your required
rate of return (1) increases to 16 percent or (2) decreases to 6
percent?
c. Explain the implications of your answers in
part (b) as they relate to interest rate risk,
premium bonds, and...

a. Assume that Social Security promises you $42,000 per year
starting when you retire 45 years from today (the first $42,000
will get paid 45 years from now). If your discount rate is 4%,
compounded annually, and you plan to live for 15 years after
retiring (so that you will receive a total of 16 payments
including the first one), what is the value today of Social
Security's promise? The value today of Social Security's promise
is $____?
b. Assume...

6. Consider a 10 year bond with face value $1,000 that pays a
6.8% coupon semi-annually and has a yield-to-maturity of 8.4%. What
is the approximate percentage change in the price of bond if
interest rates in the economy are expected to decrease by 0.60% per
year? Submit your answer as a percentage and round to two decimal
places. (Hint: What is the expected price of the bond before and
after the change in interest rates?)

Consider a 12-year bond with face value $1,000 that pays an 8.6%
coupon semi-annually and has a yield-to-maturity of 7.7%. What is
the approximate percentage change in the price of bond if interest
rates in the economy are expected to decrease by 0.60% per year?
Submit your answer as a percentage and round to two decimal places.
(Hint: What is the expected price of the bond before and after the
change in interest rates?)

1.The future value of 3500 dollars invested at 4.5% per year
compounded quarterly for six years
is
?
dollars.
Answer is whole number of dollars, no $ sign.
2.
The future value of 810 dollars invested at 5.2% per year
compounded monthly for twenty years is
? dollars.
Answer is whole number of dollars, no $ sign.
3.
How much do you need to invest at 3.1% per year compounded
continuously for nine years to have 5000 dollars at the...

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