2) You mom is more conservative, and she wants you to invest in the C.D. paying 4% per year for three years. What maximum annual operating expense ratio would the MMSG fund charge to make you better off (cash out more money) in MMSG than in the CD after three years?
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- Your younger sibling asks you to borrow $20. You, a smart financial professional, agree but also charge interest on the $20. You plan to collect $5 from your sibling each week for 8 weeks to repay the initial loan. What is the NPV of this project, assuming you invest the $5 at 12%? a. $4.84 b. $2.11 c. $0 d. $6.884. Suppose you make an annual contribution of BD100 each year to a college education fund for a niece. She is 4 years old now, and you will start next year and make the last deposit when she is 18. The fund is a money market account earning 6.5%/year. What will it be worth immediately after the last deposit? You may also set up spreadsheet solutionListen The Chan family would like to establish a bursary at Camosun College. The bursary will pay $2,000 to a deserving finance student each year. Assuming that the payments will never end and that the funds can earn j1=3.5%, how much will it take to establish the bursary? Assume that the payments are at the end of each year. Your Answer:
- You are selling your car and the dealership says to you, "we can either give you $15,000 today or we can give you $5,000 per year starting one year from now for the next 4 years." At what interest rate are you indifferent? (i.e. what interest rate is being provided here?) Choose the closest. a) 18.8% b) 33.3% c) 12.6% d) 6.7%You want to go to grad school 3 years from now, and you can save $5,000 per year for consecutive three years, beginning immediately. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how much will you have 3 years from now? Can someone tell me how to solve this because I keep getting wrong answers.(Part A) If the average spending of Tobias and Antonia is $61,200 per year, (1) compute their liquidity ratio and (2) explain if their liquidity ratio is in appropriate range. Round to two decimal places of percentage (e.g., 11.11%) (Part B) How much interest could be saved annually if Tobias and Antonia can convert credit card debt to investment loan? They can get investment loan at 6% interest.
- Assume that your parents wanted to have $160,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and eamed 12.5% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $200,000 saved just in case, how much would they have to save each year to reach their new goal? Ⓒ a. How much would they have to save each year to reach their goal? To reach the goal of $160,000, the amount they have to save each year is $ (Round to the nearest cent.)Assume that your parents wanted to have $70,000 saved for college by your 18th birthday and they started saving on your first birthday. They saved the same amount each year on your birthday and earned 8.5% per year on their investments. a. How much would they have to save each year to reach their goal? b. If they think you will take five years instead of four to graduate and decide to have $110,000 saved just in case, how much would they have to save each year to reach their new goal? a. How much would they have to save each year to reach their goal? To reach the goal of $70,000, the amount they have to save each year is (Round to the nearest cent.)Suzanne starts her college education four years from now. For her college education, she is going to save $1,100 a quarter for the next four years in a bank account paying 13 percent interest. How much will she have at the end of the fourth year? Must identify variables and use excel m Nper (or N) =n*m Rate (or I/Y)=i/m PV PMT FV
- You are thinking of building a new machine that will save you $3,000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 2% per year forever. What is the present value of the savings if the interest rate is 9% per year? The present value of the savings is $ (Round to the nearest dollar.) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Answer MacBook AirYou have discussed your retirement plans with your significant other and plan to move to a state with a lower cost of living upon retirement. You plan on living off $110,000 annually. You understand that your retirement account will likely yield a 5% return. Using the 4% Rule, how much money do you need in your retirement account upon retirement?(round to the nearest dollar){DO NOT INCLUDE COMMAS OR $}Required: a to d. Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? e. What is the savings in interest cost between 3.50% and 5%? f. If Harriet uses 30 years instead of 25 for both 5% and 3.50%, what is the difference in interest? Complete this question by entering your answers in the tabs below. Required A to Required E Required F D Harriet Marcus is concerned about the financing of a home. She saw a small cottage that sells for $55,000. Assuming that she puts 20% down, what will be her monthly payment and the total cost of interest over the cost of the loan for each assumption? Note: Do not round intermediate calculations. Round your answers to the nearest cent. Monthly payment Total cost of interest a. 25 Years, 5% b. 25 Years, 4.5% c. 25 Years, 4% d. 25 Years, 3.5%
