You have deposited $10,800 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of 10 years? $16,564.89 $27,213.75 $23,664.13 $28,396.96

You are a corn producer. Today, May 1, you have planted corn and you expect a crop of over 1,500,000 bushels. You would like to sell the crop soon after the October harvest. You are fairly certain that prices are heading down, so you want to lock in a price for December delivery. The performance bond deposit of $1,000.00 per contract and possible performance bond calls will not cause you a cash-flow problem. You decide to sell three hundred December corn futures contracts (5,000 bushels each, or 1,500,000 bushels).   The December futures price today is $5.6125 and the local forward cash for December is $5.2125. Brokerage fees for each contract is $25.00 round-turn. In December, futures prices have fallen to $5.6000 and cash prices to $5.2000. Date Cash Market Futures Market Basis May         December         Results         In May do you take a long or short position in the futures market? In December, what do you do in the futures market?…

What is the main reason lenders pay borrowers' property taxes through a pre-paid escrow account? It prevents a tax lien from being applied to the home. The tax lien would be senior to the mortgage lien. It prevents the borrower from refinancing with another lender because they would lose all of their escrow funds. It allows the lender to earn interest on the pre- paid tax money as itsits in the account. It allows the lender to take advantage of corporate tax deductions.

Margo is a homeowner. Her mortgage principal and interest cost her $780 a month. Her insurance is $1,560 annually, and her property taxes are $5,100 annually. How much is her monthly payment, including PITI? $1.335 $1,557 $910 $1,205

Bill Matthews is investing $13,200 in the Washington Mutual fund. The fund charges a 5.75 percent commission when shares are purchased. Calculate the amount of commission Bill must pay.

Suppose you own a mutual fund which has 17,000,000 shares outstanding. If its total assets are $38,000,000 and its liabilities are $7,000,000, find the net asset value (in $) of the fund. Round to the nearest cent. $

The Smiths save £32,000 per year for retirement. They are now in their mid-thirties, and they expect to have £1 million in today’s Sterling Pound saved by the time they are in their mid-sixties. If their market interest rate is 7% per year and inflation averages 2% a year, will the Smiths meet their savings expectations?

“Suppose that you have been given a summer job at J limited, a company that manufactures sophisticated radar sets for commercial aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its tremendous growth. The bank requires financial statements before approving such a loan. You have been asked to help prepare the financial statements and were given the following list of costs: The cost of the memory chips used in a radar set. Factory heating costs. Factory equipment maintenance costs. Training costs for new administrative employees. The cost of the solder that is used in assembling the radar sets. The travel costs of the company’s salespersons. Wages and salaries of factory security personnel. The cost of air-conditioning executive offices. Wages and salaries in the department that handles billing customers. Depreciation on the equipment in the fitness room used by factory workers. Telephone expenses incurred by factory management.…

Last year, Martina opened an investment account with  $7200 . At the end of the year, the amount in the account had decreased by  24.5% . How much is this decrease in dollars? How much money was in her account at the end of last year? Decrease in amount: $ Year-end amount: $

You deposited $540 in a saving account paying 2.8% simple interest. How much intrest will you earn in 7 years?   Hou much is the account at the end of 7 years?