(1) Based on the current interest rate environment, are there specific maturities you'd favor? What about floating rate bonds in the current interest rate environment...what are your thoughts with regard to those? Lastly...there are treasury bonds called TIPS...explain what they are and what advantages and/or disadvantages you see for such investments?

(4-3) An annuity is defined as a series of payments of a fixed amount for a specific number of periods. Thus, $100 a year for 10 years is an annuity, but $100 in Year 1, $200 in year 2, and $400 in year 3 through 10 does not constitute an annuity. However, the entire series does contain annuity. Is this statement true or false?

(4-4) If a firm's earning per share grew from $1 to $2 over a 10-year period, the total growth would be 100%, but the annual growth rate would be less than 10%. True or false? Explain.

(4-5) Would you rather have a savings account that pays 5% interest compounded semi-annually or one that pays 5% interest compounded daily? Explain.

Problems:

(4-1)
Future Value of a
Single payment
If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?

(4-2)
Present Value of a
Single Payment

What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?

(4-3)
Interest rate on a
Single Payment

Your parents will retire in 18 years. They currently have $250,000 and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds?

(4-4)
Number of Periods of a
Single Payment

If you deposit money today in an account that pays 6.5% annual interest, how long will it take to double your money?

(4-8)
Annuity payment and
EAR

You want to buy a car, and a local bank will lend you $20,000. The loan would be amortized over 5 years (60 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? What is the loan's EFF%?

(4-27)
Present Value of a
Perpetuity

What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity?

Solution Summary

The solution determines the time value of money and present value.

The base of a 2 cm X 3 cm X 20 cm long rectangular rod is kept at 175 degrees Celsius by electrically generated heat. This is known as a straight fin or longitudinal fin. The ambient air surrounding this fin is at 28 degrees Celsius and h=10 W/m^2-C. There is negligible heat loss at the tip of the rod.
1. What is the tempe

Fox's Fin Furs (FFF) estimates that its total cost of production is TC = 125 + 100Q + 25Q^2. Furs sell for $1,100 each. To maximize profits, how many furs should FFF sell?
Please provide step by step solution.

Can you find a bug in this program and then fix it so that it won't have an infinite loop?
#include
#include
using namespace std;
void CalculateAvgScore(ifstream &fIn,ofstream &fOut);
int main(int argc, char *argv[])
{
ifstream fin;
ofstream fout;
char inFileName[20],outFileName[20];

Set up but do not solve a differential equation that models the amount of salt in the tank for the following: A tank, having a capacity of 700 liters, initially contains 3 kilograms of salt dissolved in 100 liters of water. At time t=0, a solution containing 0.4 kilograms of salt per liter flows into the tank at a rate of 3 lite

I need help trying to figure out which formula to use to get $10,078.44
Problem:
Mr Jones wants to save for his son's college education. If he deposits $500 every 6 months at 6% compounded semiannually, how much will he have on hand at the end of 8 years?

A home buyer signed a 20-year, 8% mortgage for $72,500. Given the following information, how much should the annual loan payments be?
Present value of $1 PVIF = .2
Future value of $1 FVIF = 5.
Present value of annuity PVIFA = 9.818
Future value of annuity FVIFA = 46.0
A) $5,560
B) $7,384
C) $8,074

What is the present value of the following cash flow stream at an interest rate of 12.0% per year? $0 at Time 0; $1,500 at the end of Year 1; $3,000 at the end of Year 2; $4,500 at the end of Year 3; and $6,000 at the end of Year 4.
A. $9,699.16
B. $10,209.64
C. $10,746.99
D. $11,284.34
E. $11,848.55

In the attachment below are questions I am having a hard time figuring out. Can you show your work (formulas) so that I understand how you came to the answers?

Your company needs $500,000 in two years time for renovations and can earn 9% interest on investments.
a) What is the present value of the renovations?
b) If your company deposits money continuously at a constant rate throughout the two year period, at what rate should your money be deposited so that you have $500,000 when y

Fill in the table below for the zero-coupon bonds. The face value of each bond is $1000.
Price Maturity (Years) Yield to Maturity
$300 30 -----
$300 ----- 8%
---- 10 10%