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Finance Questions

See attached file.

1. A firm's balance sheet shows current assets of $95, net fixed assets of $250, long term debt of $40, and owners equity of $200. What is the value of the firm's current liabilities if that is the only remaining balance sheet item?

2. What is the present value of your trust fund if it promises to pay you $50,000 on your 40th birthday (7 years from today) and earns 10% compounded annually (rounded down to the nearest 100th dollar)?

3. How much can be accumulated for retirement if $2,000 is deposited annually, beginning one year from today, and the account earns 9% interest compounded annually for 40 years (rounded up to the nearest 100th dollar)?

4. Find the interest rate implied by the following combinations of present and future values:

PV = $900; FV = $1,680; time period = 4 years (rounded to the nearest whole percent)

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Solution Summary

The solution explains some finance questions relating to balance sheet and time value of money

$2.19