Determine the breakeven resale price 15 years from now of an apartment house that can be bought today for $250,000. Its annual net income is $22,000. The owner wants a 10% annual return on her investment.

Problem 54.8 Calculate the modified duration of an annuity due with payments of 100 for 10 years using an interest rate of 8%.

Stan Moneymaker has the opportunity to purchase a certain U.S. Treasury bond that matures in eight years and has a face value of $10,000. The bond stipulates a fixed nominal interest rate of 8% per year but interest payments are paid quarterly. Stan would like to earn 10% interest (compounded quarterly) on his investment. How much should Stan pay for the bond?

Rosa, age 35, is starting her savings plan this year by putting away $2,900.00 at the end of every year until she reaches age 65. She will deposit this money at her local savings and loan at an interest rate of 6%. The future value annuity interest factor is 79.0582.   Based on the information provided, by the time Rosa turns 65, she will have         .   Nick started his investment program five years earlier and set aside     more than Rosa. By the time Nick turns 65, he will have accumulated     more than Rosa.

Suppose you inherited $6,000 from your father's brother. You would like to take a trip to Australia and estimated the cost of that to be $13,000. If you could invest the money at a 6.9% rate of return, how long would you have to wait to go to Australia?

You just accepted an offer from XYZ Petrochemical Company in Louisiana. As a sign up bonus, the XYZ will deposit $10,000 in a retirement account for you which generates 12% return annually. In addition, the company deposits $5,000 every year in the same account, if you stays with XYZ. How much money will be accumulated in this account if you decide to retire 40 years from now?

Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $6000.00, r = 9.0%, t = 26 weeks (Round to the nearest cent.)

The common stock of XYZ paid $1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years. If the require rate of return is 10.5%, should you make this investment? Why?

Maintenance on an old machine is $100 this year but is expected to increase by $25 each year thereafter. What is the present worth of five years of the costs of maintenance? Use an interest rate of 10%.

Sabrina has $657 in 2022 and pays an annual interest rate of 22%. How much money will she have at the end of 2027?