Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $350,000 Rolls-Royce Phantom. Jack currently has $18,500 that he may invest. He has found a mutual fund with an expected annual return of 8 percent in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes and inflation. The number of years it will take for Jack to win Jill's hand in marriage is?

Michael Jones plans to save $5,928 every year for the next eight years, starting today. At the end of eight years, Michael will turn 30 years old and plans to use his savings toward the down payment on a house. If his investment in a mutual fund will earn him 11 percent annually, how much will he have saved in eight years when he buys his house? (Round factor values to 4 decimal places, e.g. 1.5212 and final answer to 2 decimal places, e.g. 15.25.) Future value of investment $

Your evil step-uncle wishes to leave you some of his wealth. You must choose how he wills the money to you.   OptionA: He ‘gives’ you $1000.00.  He will invest the money on your behalf, at 7.5% per annum, compounded monthly. He will add $1000 to the account at the end of each year. At his death the accumulated sum will pass to you. Option B: He ‘gives’ you $2000.00 per year until he dies. This money is not invested, and the accumulated sum will pass to you at his death.     a) If you knew Uncle was going to die in 5 years, which option would you choose? How much money would you inherit from Option A? From Option B?   b) If you knew Uncle was going to die in 20 years, which option would you choose? How much money would you inherit from Option A? From Option B?

Allison has a golden goose that will lay an egg every year until forever. The first egg will be out next year, and each egg is worth $500. Allison's friend, Eric, offers a price to buy the golden goose from Allison today. The interest rate is 10%. From the cost-benefit analysis, under which of the following offers would Allison be willing to sell the goose to Eric? O A $4,500 OB. $5,500 OC. Allison would want to sell it to Eric with both $4,500 and $5.500. D. Allison wouldn't want to sell it anyway since the eggs would be laid out forever.

Tom will pay 10000 dollars to Monica 2 years from now. John wants to buy this debt from Monica. How much would John pay to Monica in order to buy this debt if the yearly interest rate in the market is 10% for the first year and 12% for the following year?

Tina has saved $23000 from her summer jobs. Rather than work for a living, she plans to buy an annuity from a trust company and become a beachcomber in Fiji. An annuity will pay her a certain amount each month for the rest of her life and is calculated at 5 percent interest, compounded monthly, over Tina's 55 remaining years. Tina calculates that she needs at least $5 per day to live in Fiji, and she needs $1200 for airfare. How much would she have available to spend each day? $3.19 $4.79 $2.39 $6.38

Frank is planning for the day when his child, Laura, will go to college. Laurahas just turned eight and plans to enter college on her 18th birthday. She will need $25,000 at the beginning of each year in school. Frank plans to give Laura a Mercedes as a combination graduation and 22nd birthday present. The Mercedes is expected to cost $55,000. Frank currently has $10,000 saved for Laura. Also, Frank expects to inherit $25,000 nine years from now that will be used for Laura’s education. Frank expects to be able to earn 7 percent after tax on any investments.How much must Frank save at the end of each of the next 10 years in order to provide for Laura’s education and the Mercedes?

Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $5,280 at the end of each of the next 3 years. The opportunity requires an initial investment of $1,320 plus an additional investment at the end of the second year of $6,600. What is the NPV of this opportunity if the interest rate is 2% per year? Should Marian take it? What is the NPV of this opportunity if the interest rate is 2% per year? The NPV of this opportunity is $ (Round to the nearest cent.) .

Kirk Van Houten, who has been married for 21 years, would like to buy his wife an expensive diamond ring with a platinum setting on their 30-year wedding anniversary. Assume that the cost of the ring will be $13,000 in 9 years. Kirk currently has $4,483 to invest. What annual rate of return must Kirk earn on his investment to accumulate enough money to pay for the ring?

Anne Murray is planning to buy a rental property, in addition to the family home she and Henry own. She is considering a property in Bristol costing £210,000. She has savings of £85,000 which she will use as a deposit but will need to borrow the remaining amount for the purchase.  She has had a fixed-rate mortgage agreed in principle by Royal East Bank, for which she will be charged 4.75% interest. She wants to know what income she might expect to get on her investment. Local agents have estimated that the monthly rent may be £1,450 per month, with agent’s fees for managing the property being charged at 5% of the rent.  Provide Anne with an estimate of the relevant costs of renting the property and the net rental income that she might expect to get.  Anne has estimates for some of the other costs she will incur as follows: Repairs and maintenance per year      £700 Property insurance per year                              £395 Mortgage arrangement fee £1950…