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Finance Questions

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

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In an effort to make wise use of credit, the Turner have examined various sources that could serve their current and future financial needs. In the assessment process, they compared the APR along with various fees and potential charges.
Tim and Jenny are also learning about various actions that might be useful if they encounter credit troubles. Their discussions with friends and money management advisers provided expanded knowledge of credit counseling and bankruptcy alternatives.
Life Situation Financial Data
Recently Married
Pam, 26
Josh, 28
Renting an Apartment Monthly income $5,840
Living expenses $3,900
Assets $13,500
Liabilities $4,800
Emergency fund $1,000

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Yes ___
No ___

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Make sure to include zeros and the period in your answer.
Round your answer to 2 decimal places. i.e. 16.55, 12.32
Your Answer: ______

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Make sure to include zeros and the period in your answer.
Round your answer to 2 decimal places. i.e. 20.12, 31.89
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5. What would be the net annual cost of the following checking account?
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