1. Y3K, Inc., has sales of $6,189, total assets of $2,805, and a debt–equity ratio of 1.40. If its return on equity is 13 percent, what is its net income? 2. Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $65,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? 3. You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of.5 percent per year, compounded monthly for the first six months, increasing thereafter to 17 percent compounded monthly. Assuming you transfer the $6,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year?
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1. Y3K, Inc., has sales of $6,189, total assets of $2,805, and a debt–equity ratio of 1.40. If its
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2. Assume the total cost of a college education will be $300,000 when your child enters college in 18 years. You presently have $65,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education?
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3. You receive a credit card application from Shady Banks Savings and Loan offering an introductory rate of.5 percent per year, compounded monthly for the first six months, increasing thereafter to 17 percent compounded monthly. Assuming you transfer the $6,000 balance from your existing credit card and make no subsequent payments, how much interest will you owe at the end of the first year? |
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