Time Value of Money Exam Questions Essay Example

Time Value of Money: Exam Questions Essay Time Value of Money Project Show all your work! Name _________________ 1. On the off chance that Mrs. Sea shore needed to contribute a single amount of cash today to have $100,000 when she resigned at 65 (she is 40 years of age today) the amount of a store would she need to make if the loan fee on the C. D. was 5%? a. What might Mrs. Sea shore need to store if she somehow happened to utilize top notch corporate securities an earned a normal pace of return of 7%. b. What might Mrs. Sea shore need to store if she somehow happened to utilize normal stock and earned a normal pace of return of 11%. c. What kind of an issue is this? __________ 2. On the off chance that you had an installment that was expected you in 5 years for $50,000 and you could win a 5% pace of return, what amount would you acknowledge as installment today for this installment later on? a. In the event that your pace of return is 8%, what amount would you acknowledge as installment today? b. On the off chance that you r pace of return is 10%, what amount would you acknowledge as installment today? c. What sort of an issue is this? ___________ 3. You need to set aside enough cash to resign as a tycoon. On the off chance that you could acquire 10% with basic stocks, what amount would you need to put aside every year to have $1,000,000 when you are 65? . On the off chance that you were going to make a store month to month, what amount would you need to put aside every month to have $1,000,000 when you are 65? b. In the event that you had the option to gain 11%, what amount would you need to put aside every month to have $1,000,000 when you are 65? c. What sort of an issue is this? ___________ 4. On the off chance that you were going to purchase your office from Mrs. Sea shore for $500,000 with a 10% initial installment, 15 years financing with a 6% loan cost, what amount would your installments be every month? a. What might be the head and intrigue installment on the principal installment? b. What might be the head and intrigue installment on the twelfth installment? c. What sort of an issue is this? ___________ 5. Same issue as above, however accept that the credit was for a long time? What is the new installment? a. What might be the head and intrigue installment on the main installment? b. What might be the head and intrigue installment on the twelfth installment? c. What sort of an issue is this? ___________ 6. You need to buy a truck for $25,000 and you have $3,450 to put down. What amount will your installments be in the event that you financed the truck for 60 months at 6%? a. What amount would the installment be if pace of intrigue is 5% and you just financed the truck for four years? b. Accepting that you would just back the truck for a long time, what amount would you have to put down to get your installment to $450. 00? c. What kind of an issue is this? ___________ 7. You have $350. 00 every month to spend on a vehicle installment. On the off chance that your credit association charged 7. 5% enthusiasm on a trade-in vehicle, what amount of vehicle would you be able to buy in the event that you will just fund for a long time? __________ 8. In the event that you need to buy a home. You have $15,000 to put down. Everything you can bear the cost of is $1,500. 0 every month and you would prefer not to back for over 15 years @ 6% intrigue, (your duties will be $85. 00 every month and protection $200. 00 per month), what is the sum you can pay for your home? (Show all your work) 9. You need to buy a business with the accompanying incomes. What amount would yo u pay for this business today accepting you required a 14% come back to make this arrangement? a. Year 2011 $150,000 b. Year 2012 $175,000 c. Year 2013 $225,000 d. Year 2014 $275,000 10. What amount would you pay for this business today expecting you required a 18% come back to make this arrangement? What sort of an issue is this? _______________tm We will compose a custom paper test on Time Value of Money: Exam Questions explicitly for you for just $16.38 $13.9/page Request now We will compose a custom article test on Time Value of Money: Exam Questions explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer We will compose a custom article test on Time Value of Money: Exam Questions explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer