Introduction to Finance Assignment 1

academic year interest rate of 3.76 percent would pay a 5,032 dollars interest over 10 years,

This four-credit course is for students who major in finance. By the end of this course,

Horizontal analysis allows side by side comparisons on a year to year basis to determine the performance from one year to the next. The company decides on standards to compare the results of the analysis. Standards are researched by checking competitors, internet research of general industry guidelines or standards created from past experience in the company.

a. Starting with $20,000, how much will you have in 20 years if you can earn 5% on your money?

I would opt to take the $5,000 now, combine it with the existing saving of $10,000, and invest it at the 3% interest rate. The average 3% rate of return would produce earned interest of $463.64, which would exceed the three-year return of $250.00 by $213.64.

price is $25 per share. The most recent dividend was $1 and the growth rate is 5%.

2. If you had a payment that was due you in 5 years for $50,000 and you could earn a 5% rate of return, how much

10. You have $2,000 today and want to quadruple your money in 10 years. What interest rate must you earn?

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).

The cash flows for an annuity must all be equal, and they must occur at regular intervals, such as once a year or once a month.

1. (TCO 3) Tim needs to borrow $5,000 for two years. The loan will be repaid in one lump sum at the end of the loan term. Which one of the following interest rates is best for Tim?

(Compound value solving for I) at what annual rate would the following have to be investe

(5 points) In a world with no frictions (i.e., taxes, etc.), having debt is always better because it increases the value of the firm/projet.

-Brokerage firms manage and facilitate the purchase of stocks, bonds, and other types of investments.

(5 points) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4% interest.