Calculate the price
of
your order:

275 words
+
Approximate price
$ 0.00

problem #4

 

Assume that you are nearing graduation and have applied for a job with a local bank.  As part of the bank’s evaluation process, you have been asked to take an examination that covers several financial analysis techniques.  The first section of the test addresses time value of money analysis.  See how you would do by answering the following questions.

  1. Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4.
  2. What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest?
  3. What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%?
  4. We sometimes need to find out how long it will take a sum of money (or anything else) to grow to some specified amount.  For example, if a company’s sales for 2020 is $1000 and expected to grow at a rate of 10% per year, how long will it take sales to double?
  5. If you invested $10,000 in an investment account and you expect it to double in 4 years, what interest rate must it earn?
  6. What is the future value of a 5-year ordinary annuity of $1000 if the appropriate interest rate is 5%? What is the present value of the annuity?
  7. What is the future value of $1000 after 4 years under 10% annual compounding?  Semiannual compounding?  Quarterly compounding?  Monthly compounding?  Daily compounding
  8. What is the effective annual rate (EAR or EFF%)?  What is the EFF% for a nominal rate of 5%, compounded semiannually?  Compounded quarterly?  Compounded monthly?  Compounded daily?
  9. Construct an amortization schedule for a $1,000, 12% annual rate loan with 4 equal installments. What is the annual interest expense for the borrower, and the annual interest income for the lender, during Year 2?
  10. Suppose on January 1 you deposit $1000 in an account that pays a nominal, or quoted, interest rate of 12%, with interest added (compounded) daily.  How much will you have in your account on October 1, or 9 months later?
  11. You want to buy a car, and a local bank will lend you $10,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 10%, with interest paid monthly. What is the monthly loan payment?
  12. While Mary Corens was a student at the University of Tennessee, she borrowed $20,000 in student loans at an annual interest rate of 5%. If Mary repays $200 per year, then how long (to the nearest year) will it take her to repay the loan?

Submit your answers in a Word document.

Basic features

  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support

On-demand options

  • Writer's samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading

Paper format

  • 275 words per page
  • 12pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, CHicago/Turabian, Havard)

Guaranteed originality

We guarantee 0% plagiarism! Our orders are custom made from scratch. Our team is dedicated to providing you academic papers with zero traces of plagiarism.

Affordable prices

We know how hard it is to pay the bills while being in college, which is why our rates are extremely affordable and within your budget. You will not find any other company that provides the same quality of work for such affordable prices.

Best experts

Our writer are the crème de la crème of the essay writing industry. They are highly qualified in their field of expertise and have extensive experience when it comes to research papers, term essays or any other academic assignment that you may be given!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

error: Content is protected !!
Open chat
1
Reliance Papers Inc.
Get Help With All Your Homework Questions. Any Deadline, Affordable, Quality Work Guaranteed!!