Mat 540 Week 1

* If the price was set at $90,000 the new fixed cost percent would be 23% as that is the closest to $90,000 at $89,997

Poor Dog, Inc. borrowed $135,000 from the bank today. They must repay this money over the next six years by making monthly payments of $2,215.10. What is the interest rate on the loan? Express your answer with annual compounding.

These annual amounts I used to calculate annual tax savings by multiplying annual interest amount by tax rate. In order to be able to compare the amounts received in different years, I found present values of each cash flow. I added up the PVs of tax savings for every year to get total tax savings (all 15 years for option 1 and first 5 years for option 2).

The amount of money that I had spent over one week ended up totaling $100.77. To come up with the amount of money that would be spent in a year if I spent $100.77 for 52 weeks, the total would be $5,240.04. Then to determine the amount of money that would be spent over 25 years, it would be $5,240.04 multiplied by 25 years, and that would be $131,001. That is $131,001 that I spent on completely unnecessary expenses. To determine what $131,001 would equal in todays money it requires to be plugged into an equation, PV=FV/(1+i)^n . “FV” stands for the future value, that is the value that we calculated by multiplying by 25 years, $131,001. The “i” stands for the interest

would be $200. She wants to make sure that she can afford this monthly loan payment, so she is creating an

Lets start with a simple example and lets say we are working with our favorite client, Mr Santa Claus - who is faced each year with the ultimate big data challenge - a level of complexity that implies he has solved many of the challenges that business are facing. He is faced with big data challenges with 3 key streams as: i. demand, ii. supply and iii. fulfillment.

8. If you want to purchase a home. You have $15,000 to put down. All you can afford is $1,500.00 per month and you do not want to finance for more than 15 years @ 6% interest, (your taxes will be $85.00 per month and insurance $200.00 a month), what is the amount you can pay for your home? (Show all your work)

Therefore, triple-leveraged ETF gives higher return than the unleveraged ETF. The return is not exactly three times, it is slightly more than three times of the return.

According to the calculation above, assuming that the present value is 100, S&P 500 will have higher return on the triple- leveraged ETF than the unlevered ETF. This shows us that although sometimes the triple-leveraged ETF would be more risky on loss but it can still earn more.

At an interest rate of 15% per year (3.75% for three months, the amount to borrow equals

o 20% immediately, 20% at the end of the first year, remaining 60% at a 2% per month

Given the warnings of the housing market softening, it would be safe to assume a 4% growth rate. Finally, tax savings are calculated based on deductions from mortgage interest payments and property taxes multiplied by the Lintons’ marginal tax rate of 33%.

Average lot price $50,000. Discount Rate 10%. Other parameters as shown above. Determine the Present Value of the Cash Flows, and the Present Value per Lot.

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

IPmt(0.0525/1, 4, 10*1, 6500) MS Excel: PPMT Function (WS, VBA) • In Excel, the PPMT function returns the payment on the principal for a particular payment based on an interest rate and a constant payment schedule. • The syntax for the PPMT function is: • PPMT( interest_rate, period, number_payments, PV, [FV], [Type] ) • interest_rate is the interest rate for the loan. • period is the period used to determine how much principal has been repaid. Period must be a value between 1 and number_payments.