Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow: (1)        Work full time at a local accounting firm making $3,400 per month. (2)        Take a summer class which will cost $200 per month and work half time making $2,500 per month. (3)        Take two classes at a cost of $1,200 and not work at all during the summer.               Leah’s incremental revenue if she chooses option 1 over option 2 would be     $900 per month.     $800 per month.     $700 per month.     $3,400 per month.     $1,000 per month

A father is now planning a savings program to put his daughter through college. She is 13, plans to enroll at the university in 5 years, and she should graduate 4 years later. Currently, the annual cost (for everything - food, clothing, tuition, books, transportation, and so forth) is $15,000, but these costs are expected to increase by 6% annually. The college requires total payment at the start of the year. She now has $9,000 in a college savings account that pays 8% annually. Her father will make six equal annual deposits into her account; the first deposit today and sixth on the day she starts college. How large must each of the six payments be? (Hint: Calculate the cost (inflated at 6%) for each year of college and find the total present value of those costs, discounted at 8%, as of the day she enters college. Then find the compounded value of her initial $9,000 on that same day. The difference between the PV of costs and the amount that would be in the savings account must be…

Your birthday is next week and instead of other presents, your parents promised to give you $1,300 in cash. Since you have a part-time job and, thus, don't need the cash immediately, you decide to invest the money in a bank CD that pays 5.40 percent, compounded quarterly, for the next two years. How much money can you expect to earn in this period of time? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny) Value of investment after 2 years $

You have just finished your undergraduate degree and you have two career options: Option 1: Accepting a job offer with the starting salary of $75,000 per year (paid at the end of the year) and an annual raise of 2% pa (guaranteed). You will work in this company for 40 years. Option 2: Choosing a graduate program which will cost you $28,000 per year for the next two years (paid at the beginning of each year). Following the graduate school, you can get a job that offers the initial salary of $85,000 (paid at the end of the Year 3) with an annual raise of 3% pa (guaranteed). You will work in this company for 38 years. a. If you use the discount rate of 10% pa, which option is more lucrative for you? b.At what discount rate will you be indifferent between these two career options? (Hint: You need to use the incremental cash flows to answer this question) c. If option 2 (i.e., work after grad school) comes with a signing bonus (paid at the beginning of Year 3), at what signing bonus will…

You have chosen biology as your college major because you would like to be a medical doctor. however, you find that the probability of being accepted to medical school is about 20 percent. if you are accepted to medical school, then your starting salary when you graduate will be $260,000 per year. however, if you are not accepted, then you would choose to work in a zoo, where you will earn $30,000 per year. without considering the additional years you would spend in school if you study medicine or the time value of money.   What is your expected starting salary? WHat is the standard deviation of that starting salary?

Suppose that you need $30,000 for your last year of college. You could go to a private lending institution and apply for a signature student loan; rates range from 7% to 14%. However, your Aunt Sally is willing to loan you the money from her retirement savings, with no repayment until after graduation. All she asks is that in the meantime you pay her each month the amount of interest that she would otherwise get on her savings (since she needs that to live on), which is 4%.What is your monthly payment to her, and how much interest will you pay her over the year (9 months)?(Fill in the blanks below and give your answers as whole numbers.)The amount of interest per month you would pay Aunt Sally is $__(1)__ .The total interest you will pay her over the year (9 months)is $__(2)__ .

i need answer urgent

A used car that currently costs $25,000 will have a market value of $8,000 in four years. As a student, you cannot afford to pay $25,000, but you want to have a car while you are going to university for the next four years. Your father agrees to lend you $25,000 on the condition that you pay him $300 at the end of every month for the next four years and $25,000 at the end of the four years. The car dealer provides financing facilities, and you are qualified to get a lease for which you will have to make monthly, end-of-month payments of $650 for 48 months. Which option will leave you better off, assuming your opportunity cost is 6 percent?

You graduated college six years ago with an undergraduate degree in Finance. Although satisfied withyour current job, your goal is to become an investment banker, and you wonder if an MBA degree wouldallow you to achieve that goal. After examining schools, you have narrowed your choice to eitherWilton University or Mount Perry College. Although internships are encouraged by both schools, to getcredit for the internship, no salary can be paid. Other than internships, neither school will allowstudents to work while enrolled on the MBA program. However, thanks to a bequest from yourgrandmother, your savings account has enough money to cover the entire cost of the MBA programYou currently work a money management firm, earning $53, 000 annually. Your salary is expected toincrease 3% per year until retirement. You expect to work for 38 more years. Your current job includesa fully paid health insurance plan. Your current average tax rate is 26%.The Ritter College of Business at Wilton…

Fiona has a four-year contract to sell coffee in a local office building. After two years in business, she wants to move on. Kurt wants to buy out the last two years of Fiona’s contract. He estimates he can make $7,500 in the first year and $7,800 in the second year. If the discount rate is 8%, what is the maximum amount Kurt should be willing to pay?