Levels Tought:
Elementary,High School,College,University
Teaching Since: | Apr 2017 |
Last Sign in: | 267 Weeks Ago |
Questions Answered: | 6064 |
Tutorials Posted: | 6070 |
Doctor of Education in Educational Leadership with a Specialization in Educational Technology
Phoniex University
Oct-1999 - Nov-2005
HR Executive
a21, Inc.
Nov-1998 - Dec-2005
Question 1. Sarah Wiggum would like to make a single investment and have $1.6 million at the time of her retirement in 35 years. She has found a retirement fund that will earn 3% annually. How much will Sarah have to invest today? If she earned an annual return of 20%, how soon could she then retire?
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Question 2. Much to your surprise, you were selected to appear on the TV show, "The Price is Right." As a result of your prowess in identifying how many rolls of toilet paper an average American family keeps on hand, you win the opportunity to choose one of the following: $2,000 today, $10,000 in 10 years, or $31,000 in 29 years. Assuming you can earn 16% on your money, which should you choose?
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Question 3. What is the present value of a $650 perpetuity discounted back to the present at 10%? What is the present value of the perpetuity?
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Question 4. Alex Karez has taken out a loan of $180,000 with an annual rate of 10% compounded monthly to pay off hospital bills from his wife’s illness. If the most Alex can afford to pay is $3,500 a month, how long will it take to pay off the loan? How long will it take to pay off the loan if he can pay $4,000 each month? Use five decimal places for the monthly percentage rate in your calculations. If Alex can pay $3,500 a month, how many years will it take to pay off the loan?
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Question 5.Â
You are given three investment alternatives to analyze. The cash flows from these three investments are as follows:
What is the present value of investments A, B, and C if the appropriate discount rate is 10%?
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