a. 0.47 b. 1.27 b. 1.27 d. 2.85 III. Exercise Muffin Megabucks is consideri S500 every six months, and she would receive interest at a 7 percent annual rate, compounded semiannually. Under the second plan she would deposit $1,000 every year with a rate of interest of 7.5 percent, compounded annually. The initial deposit with Plan 1 would be made six months from now and, with Plan2, one year hence. 1. ng two different savings plans. The first plan would have her deposit a. What is the future (terminal) value of the first plan at the end of 10 years? b. What is the future (terminal) value of the second plan at the end of 10 years? Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? 2. 3. Cordillera Carson Company has the following balance sheet and income statement for 20X2 (in thousands) BALANCE SHEET Cash Accounts receivable Inventories INCOME STATEMENT Net sales (all credit) Cost of goods sold Gross profit Selling, general, and S 400 1,300 S12,680 Current assets Net fixed assets $3,800 administration expenses Profit before taxes Profit after taxes S 2,230 Total assets $7.120 Interest expense S 1,060 320 260 1,100 $1,680 2,000 3,440 Total liabilities and net worth$7,120 Accounts payable Accruals Short-term loans Taxes Current liabilities Long-term debt Net worth (Total equity)