Healthcare Finance Chapter#9 Answers Essay
Problems: P 9.19.4, 9.8 & 9.11
HM 707 Health Management Foundations II
Problem 9.1
Find the following values for a lump sum assuming annual compounding: a) The future value of $500 invested at 8 percent for one year:
FVN = FV1= PV × (1 +I)N = $500 x (1 + 0.08) = $500 x 1.08 = $540 b) The future value of $500 invested at 8 percent for five years:
FVN = FV5= PV × (1 +I)N = $500 x (1 + 0.08)5 = $500 x (1.08)5 = $734.66
c) The present value of $500 to be received in one year when the opportunity cost rate is 8 percent (discounting):
PV = FVN = $5001 = $500 = $462.96 (1 + I)N (1 + 0.08)1 (1.08)1
d) The present value of $500 to be received in …show more content…
= (1 + 0.08/4)4 1.0
= (1.02)4 1.0
= 0.0824 = 8.24%
Therefore the annual interest rate is 8% and the effective annual rate compounded quarterly is 8.24%
Problem 9.4
Find the following values

Finance chapter answers
9413 Words  38 Pagesof the borrower and its past loan repayment performance. The term structure of interest rates is a marketwide factor and is likely to influence the base rate, but it should not influence the margin that applies to a borrower, so C is the correct answer. MORE: Financial Institutions, Instruments and Markets 5/e, pp. 390–391. The interest rate charged on a term loan will also depend on the following: • The credit risk of the borrower. This is the perceived creditworthiness of the borrower. A lender…

Chapter 9 Essay
30245 Words  121 Pagespatties is an example of a continuous random variable. True 3. The college of business administration at acorn University offers a major in finance. Based on historical records, 30% of the college of business students major in Finance. A random sample of 20 students is selected. What is the probability that exactly 3 of the selected students are majoring in Finance? .0716 4. Assume that we have selected a random sample of 25 units from a normally distributed large population. If u = 15, and c2=4, what…

Essay on Healthcare Finance Chapter 1 and 2
2348 Words  10 PagesChapter 1 Question and Answers 1.1 a. What are some of the industries in the healthcare sector? Some of the industries in the healthcare sector are health insurance, pharmaceuticals and biotechnology, medical equipment and supplies and health services. Others include education institutions, government and private research agencies. b. What is meant by the term healthcare finance as used in this book? Healthcare finance is a term used in this book to describe accounting and financial…

chapter answers
14408 Words  58 PagesTest Bank for Organization Development & Change Chapter 1 General Introduction to Organization Development Multiple Choice Questions 1. Which of the following is included in the definition of OD? a. OD applies to an entire system b. OD is based on behavioral science knowledge c. OD is concerned with planned change d. OD encompasses strategy, structure, and process changes e. all of the above ANS: e 2. Organization development distinguishes itself from organization change and…

chapter 9
3616 Words  15 PagesChapter 6 Perfectly Competitive Markets 1. A firm sells a product in a perfectly competitive market, at a price of $50. The firm has a fixed cost of $30. Fill in the following table and indicate the level of output that maximizes profit. How would the profitmaximizing choice of output change if the fixed cost increased from $40 to $60? More generally, explain how the level of fixed cost affects the choice of output. The table is as follows: Output (Units) Total Revenue ($/unit) Total Cost…

Healthcare Finance
1518 Words  7 Pagesand accessible health care, the government has stepped in. The Patient Protection and Affordable Care Act (PPACA), is a United States federal statute signed into law by President Barack Obama on March 23, 2010. The goal of the healthcare reform is to make healthcare more affordable and accessible to all American citizens. This package will cost roughly $940 billion over 10 years to provide expanded insurance coverage, according to Congressional Budget Office. The plan is expected to reduce the…

Npv Chapter 9
3698 Words  15 PagesCHAPTER 9 Net Present Value and Other Investment Criteria 301 project a good investment? Second, if we have more than one good project, but we can take only one of them, which one should we take? The main point of this chapter is that only the NPV criterion can always provide the correct answer to both questions. For this reason, NPV is one of the two or three most important concepts in finance, and we will refer to it many times in the chapters ahead. When we do, keep two things in mind: (1)…

Essay on Futures and Options Chapter 9 Answer
3045 Words  13 PagesCHAPTER 9 Mechanics of Options Markets Practice Questions Problem 9.8. A corporate treasurer is designing a hedging program involving foreign currency options. What are the pros and cons of using (a) the NASDAQ OMX and (b) the overthecounter market for trading? The NASDAQ OMX offers options with standard strike prices and times to maturity. Options in the overthecounter market have the advantage that they can be tailored to meet the precise needs of the treasurer. Their disadvantage…

Healthcare Finance Chapter#9 Answers Essay
1221 Words  5 PagesFinancial Condition Analysis, Chapter 9 Problems: P 9.19.4, 9.8 & 9.11 HM 707 Health Management Foundations II Problem 9.1 Find the following values for a lump sum assuming annual compounding: a) The future value of $500 invested at 8 percent for one year: FVN = FV1= PV × (1 +I)N = $500 x (1 + 0.08) = $500 x 1.08 = $540 b) The future value of $500 invested at 8 percent for five years: FVN = FV5= PV × (1 +I)N = $500 x (1 + 0.08)5 = $500 x (1.08)5 = $734.66 c)…

Business Law I Chapter 9 Answers
1010 Words  5 PagesChapter 9 Answers: 1. Consideration consists of mutual exchange of gains and losses between contracting parties. In the exchange, a gain by the offer is at the same time a loss to the offeror. The legal term used to designate the gain that each party experiences is that party's legal benefit. Consideration has three characteristics 1) The agreement must involve a bargainedfor exchange; 2)the contract must involve adequate consideration; and 3) the benefits and detriments promised must themselves…
More about Healthcare Finance Chapter#9 Answers Essay

Finance chapter answers
9413 Words  38 Pages 
Chapter 9 Essay
30245 Words  121 Pages 
Essay on Healthcare Finance Chapter 1 and 2
2348 Words  10 Pages 
chapter answers
14408 Words  58 Pages 
chapter 9
3616 Words  15 Pages 
Healthcare Finance
1518 Words  7 Pages 
Npv Chapter 9
3698 Words  15 Pages 
Essay on Futures and Options Chapter 9 Answer
3045 Words  13 Pages 
Healthcare Finance Chapter#9 Answers Essay
1221 Words  5 Pages 
Business Law I Chapter 9 Answers
1010 Words  5 Pages