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d. If you can earn 9% per year, how much will you have to save each year if you want to retire in 40 years with $3 million?

b. What is the present value of this annuity if the opportunity cost rate is 10% annually? 10% compounded semiannually?

2. St. Luke’s Convalescent Center has $200,000 in surplus funds that it wishes to invest in marketable securities. If transaction costs to buy and sell the securities are $2,200 and the securities will be held for three months, what required annual yield must be earned before the investment makes economic sense?

9. What is the present value of an 8-year annuity that makes quarterly payments of $73 if

Throughout this problem set I will analyze the effects of compound interest. I will start with problem one assessing as to whether or not a Private in my platoon can afford a brand new vehicle. I will develop a discrete dynamical system to calculate the amount of capital left in the loan at any given month. To assess if my discrete dynamical function is accurate I will interpret my model through graphs and make sure the answer is logical. I will find out how much my soldier can afford and any other question asked. If this does not coincide with the amount the actual payment will be I will give him another recommendation.

A person deposited $500 in a savings account that pays 5% annual interest that is compounded yearly. At the end of 10 years, how much money will be in the savings account? (Bluman, A. G. 2005, page 230).

Peoples had accumulated assets of $556m. These assets were funded by short term consumer deposits, consisting largely of 3-month fixed rate savings certificates. These savings certificates were highly affected by interest rate fluctuations. The long term loans provided to people generate interest earnings which are do not increase or decrease with the interest rate fluctuations. Therefore, there was a mismatch between the interest rates earned by the bank and the interest rates that it had to give

To complete this assignment, read through the scenario below and address the specific questions and issues indicated. Review the "Introduction to the Miller Family" document for specific information on each member of the family.

After the calculations you end up coming out with a rate of 14.87%. The third and final part of question three asks what rate you will need if the interest is compounded semiannually. All you have to do is double the amount of terms and you will come out with a lower number of 7.177%. Since the interest is compounded semiannually that means that you will need to times that number by two and you come out with your final number of 14.35%.

1. You have to pay $12,000 a year in school fees at the end of each of the next six years. If the interest rate is 8%, how much do you need to set aside today to cover these bills?

The Panera Bread Company is starting 2007 with unfinished goals and missed targets previously set and a review of their strategy is in order to continue their ongoing success. The company has grown substantially since its inception in the competitive restaurant industry; however, an aggressive target of 2,000 Panera Bread bakery-cafes will require a focused strategic plan. The company has a strong base with loyal customers who appreciate Panera’s unique dining atmosphere with a focus on quality products at a reasonable price. Panera will need to continue its market research and focus on environmental issues, which are an important core value. The opportunity for

b) & c) With a same $18,000 investment, in order to earn $35,000 after 6 years, how the nominal interest rates of the First National Bank differ if coumpounded annually, semiannually, quarterly and daily?

CHAPTER 6 QUESTIONS : 8,13,14,15 QUESTION 8 Akira Numata –UIA Japan Assumptions | Value $ | Yen equivalent | Arbitrage funds | 5,000,000 | 593,000,000 | Spot Rate (¥/$) | 118.60 | | 180-days forward Rate | 117.80 | | Expected spot Rate | 118.00 | | 180-days U.S dollar interest rate | 4.80% | | 180-days Japanese Yen Interest Rate | 3.400% | | Calculations Calculating forward Rate (i= interest rate)

Best games ever released,thanks Some titles from US store can be bought to PAL console using US VPN. Title | Publisher | North America | Europe | Japan | Cost | Size | 11eyes CrossOver | 5pb. | | | June 8, 2010 | ¥2,940JP | 4.78 GB |

1. Assume that at retirement you have accumulated $825,000 in a variable annuity contract. The assumed investment return is 5.5% and your life expectancy is 18 years. What is the hypothetical constant benefit payment?