Questions from Corporate Finance

Q: If the future value of an ordinary, 7-year annuity

If the future value of an ordinary, 7-year annuity is $6,500 and interest rates are 8.5 percent, what is the future value of the same annuity due?

Q: If the future value of an ordinary, 6-year annuity

If the future value of an ordinary, 6-year annuity is $8,500 and interest rates are 9.5 percent, what’s the future value of the same annuity due?

Q: A loan is offered with monthly payments and a 10 percent APR

A loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate (EAR)?

Q: A loan is offered with monthly payments and a 13 percent APR

A loan is offered with monthly payments and a 13 percent APR. What’s the loan’s effective annual rate (EAR)?

Q: John’s Bait and Fish shop has had the monthly sales amounts listed

John’s Bait and Fish shop has had the monthly sales amounts listed as follows for the last four years. Assuming that there is both seasonality and a trend, estimate monthly sales for...

Q: At your full-service brokerage firm, it costs $135

At your full-service brokerage firm, it costs $135 per stock trade. How much money do you receive after selling 250 shares of International Business Machines (IBM), which trades at $96.17?

Q: Consider that you are 45 years old and have just changed to

Consider that you are 45 years old and have just changed to a new job. You have $150,000 in the retirement plan from your former employer. You can roll that money into the retirement plan of the new...

Q: Your client has been given a trust fund valued at $1

Your client has been given a trust fund valued at $1 million. He cannot access the money until he turns 65 years old, which is in 25 years. At that time, he can withdrawal $25,000 per month. If the tr...

Q: Your client has been given a trust fund valued at $1

Your client has been given a trust fund valued at $1.5 million. She cannot access the money until she turns 65 years old, which is in 15 years. At that time, she can withdraw $20,000 per month. If th...

Q: A local furniture store is advertising a deal in which you buy

A local furniture store is advertising a deal in which you buy a $3,000 dining room set and do not need to pay for two years (no interest cost is incurred). How much money would you have to deposit no...