Question

In light of the impact of the coronavirus pandemic, Kalbarri Mutual Bank in Western Australia, would like to set up a reserve fund. The fund will earn an interest rate of 4% per annum. If the fund pays a fixed amount of $20 million to the bank annually for an infinite period, starting two years from today, how much does the bank need in the fund today? Select one: a. $500.0 million b. $520.0 million c. $444.5 million d. $408.8 million

Answer #1

In light of the impact of the coronavirus pandemic, Kalbarri
Mutual Bank in Western Australia, would like to set up a reserve
fund. The fund will earn an interest rate of 4% per annum. If the
fund pays a fixed amount of $20 million to the bank annually for an
infinite period, starting two years from today, how much does the
bank need in the fund today?
Select one:
a. $520.0 million
b. $444.5 million
c. $500.0 million
d. $408.8...

In light of the impact of the coronavirus pandemic, Katherine
Mutual Bank in the Northern Territory, would like to set up a
reserve fund. The fund will earn an interest rate of 4.7% per
annum. If the fund pays a fixed amount of $11 million to the bank
annually for an infinite period, starting three years from today,
how much does the bank need in the fund today?

To make provision for the possible impact of recessions in the
future, Albany Mutual Bank would like to set up a reserve fund. The
fund will earn an interest rate of 6% per annum. If the fund pays a
fixed amount of $12 million to the bank annually for an infinite
period, starting two years from today and the annual payment grows
at 2.5% per annum, how much does the bank need in the fund
today?

Congratulations! Today is your 20th birthday, but you
are starting with nothing in the bank. You just started working
full-time, earning $50,000 per year. Your goal is to have $2
million by your 65th birthday (i.e., 45 years from
today). Your employer offers a 401(k) plan (contributions by you
are tax deductible, growth is tax deferred), and within that plan
you choose to invest in an extreme low-cost S&P 500 index
mutual fund (like ones offered by Schwab, Fidelity, Vanguard,...

Linear Programming Formulation Project
IE-311 Operation Research I
Western Bank of Commerce and Industry (WBCI) is a busy bank that
has requirements for between 10 and 18 tellers, depending on the
time of the day. The afternoon time, from noon to 2 P.M., is
usually heaviest. The table below indicates the workers needed at
various hours that the bank is open:
Time Period
Number Required
9 A.M - 10 A.M
10
10 A.M. – 11 A.M.
12
11 A.M. –...

4. The Mycroft Inquiries Group has a
price-earnings ratio of 17.5, net income of $194,000, a book value
per share of $22.22, and 70,000 shares of stock outstanding. What
is its market to book ratio?
5.
Moriarity Ltd has adopted a policy whereby it will maintain a
constant debt-equity ratio. Given this, what is its maximum growth
rate if it has net income of $9,600, total equity of $66,000, total
assets of $150,000 and a 30% dividend payout ratio?
6. ...

Intermediate
1. Multiple compounding periods: Find the future value of an
investment of $2,500 made today for the following rates and
periods:
a.
6.25 percent compounded semiannually for 12 years
b.
7.63 percent compounded quarterly for 6 years
c.
8.9 percent compounded monthly for 10 years
d.
10 percent compounded daily for 3 years
2. Multiple compounding periods: Find the present value of
$3,500 under each of the following rates and periods.
a.
8.9% compounded monthly for five years.
b. ...

Whatever It Takes: How the Fed Aims to Rescue the
Economy
The central bank is using tactics from the last financial crisis
and deploying new ones to keep money flowing. Here are the
basics.
The Federal Reserve, under Jerome H. Powell, is moving to shore
up the American economy during the coronavirus pandemic.
Credit...Yuri Gripas/Reuters
By Ben Casselman March 23, 2020
The Federal Reserve on Monday pledged to do, in essence,
whatever it takes to keep the economy from collapsing...

Amazon CEO Jeff Bezos’ 2020 letter to shareholders details the
company’s plans to combat the coronavirus
Amazon CEO Jeff Bezos just published his annual letter to
shareholders, and the efforts his company is taking to address the
COVID-19 crisis were front and center.
He outlined the company’s plans to build a lab to test employees
and the social
distancing measures its implemented in its facilities among
other initiatives.
Other than the coronavirus pandemic, Bezos also discussed the
retail giant’s efforts...

The following balance sheet and income statement should be used for
questions #1
through #6:
Kuipers, Inc.
2001 Income Statement
(OMR in millions)
Net sales 9,625
Less: Cost of goods sold 5,225
Less: Depreciation 1,890
Earnings before interest and taxes 2,510
Less: Interest paid 850
Taxable income 1,660
Less: Taxes 581
Net income 1,079
Addition to retained earnings 679
Dividends paid 400
Kuipers, Inc.
12/31/00 and 12/31/01 Balance Sheet
(in OMR, in millions)
2000 2001 2000 2001
Cash 1,455 260...

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