Maurice Tutor

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About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 408 Weeks Ago, 5 Days Ago
Questions Answered: 66690
Tutorials Posted: 66688

Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 09 Oct 2017 My Price 9.00

Life Insurance Co.

Q1

CurlyAc€?cs Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $44,000 per year forever. Assume the required return on this investment is 6.9 percent.

Required:

How much will you pay for the policy?

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Q2:

Present Value Years Interest Rate Future Value
  $ 3,050     8     16 %     $      
    8,653     21     8       $      
    91,305     15     9       $      
    229,382     31     4       $      

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Q3

Assume you deposit $5,200 at the end of each year into an account paying 10 percent interest.

Requirement 1:

How much money will you have in the account in 17 years?

Requirement 2:

How much will you have if you make deposits for 34 years?

------

Q4

Beginning three months from now, you want to be able to withdraw $4,400 each quarter from your bank account to cover college expenses over the next four years.

Required:

If the account pays .84 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years?

---

Q5:

First National Bank charges 10.5 percent compounded monthly on its business loans. First United Bank charges 10.7 percent compounded semiannually.

Requirement 1:

Calculate the EAR for each bank

First National Bank%

  First United Bank%

Q6

Investment X offers to pay you $6,500 per year for 9 years, whereas Investment Y offers to pay you $8,900 per year for 5 years.

Requirement 1:
(a)

If the discount rate is 5 percent, what is the present value of these cash flows?

nvestment X$      

Investment Y$    

b)

Which of these cash flow streams has the higher present value at 5 percent?
Requirement 2:
(a)

If the discount rate is 23 percent, what is the present value of these cash flows?

b)

Which of these cash flow streams has the higher present value at 23 percent?

Q7:

Solve for the unknown number of years in each of the following

Present Value Years Interest Rate Future Value
  $ 550           10 %     $ 1,405  
    2,241           8         4,000  
    33,405           13         390,120  
    33,100           20         207,284  

 

Answers

Maurice Tutor
(5)
Status NEW Posted 09 Oct 2017 10:10 PM My Price 9.00

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