Finance -

1.Indicate the interest rate earned if you borrow $9,000 and promise to make payments of $200 at the end of each month for 5 years.

2.You have won the lottery, and you must choose between three award options. You can select one of the following options:

1- To receive a lumpsum today of $75 million,

2- To receive 10 end-of-year payments of $12 million,

3- To receive 30 end-of-year payments of $8 million

-If you expect to earn 9% annually

What is the present value of 1

What is the present value of 2

Which one you must choose

3.Project A costs $50,000, its expected net cash inflows are $12,000 per year for 8 years, and its required return is 9%...

What is the project's NPV

What is the project's IRR

4.It is expected for stock A to pay a dividend of $0.60 at the end of each year (that is, D1 = 0.60), and it should continue to grow at a constant rate of 9 percent a year. If its required return is 12 percent-- what is the stock's expected price 2 years from today?

5.How many years will it take $200 to double if it earns 10% compounded quarterly.

6.Find the interest rates earned if you lend $700 and the borrower promises to pay you $749 at the end of 1 year, quarterly compounded.

7.SHQJ Corporation's 2014 sales were $5 million, and $9 million for 2019.

At what rate have its sales been growing?

8.An investment will pay $100 at the end of each of the next 3 years, $200 at the end of year 4, $300 at the end of year 5, and $600 at the end of year 6. If other investments of equal risk earn 7 percent annually.

What is its present value?

Its future value?

9.A local bank will lend you $25,000 to buy a car. The loan would be fully amortized over 5 years (60 months), and the nominal interest rate would be 10 percent, with interest paid monthly.

What would be the monthly loan payment?

What would be the loan's EAR?

10.Your parents will deposit an amount today in a bank paying 5 percent annual interest, which will provide $10,000 annually for 4 years to complete you education, starting next year (payments are withdrawn from the account)

How large must the deposit be?

If payments must be in advance. How large must the deposit be?

11.Your client in 40 years old, and she wants to begin saving for retirement, with the first payment to come one year from now. She can save $5,000 per year, and you advise her to invest it in the future stock market, which you expect to provide an average return of 11 percent in the future.

-If she follows your advice, how much money would she have at 65?

How much would she have at 70?

nIf her investments continue to earn the same rate after retirement, how much could she withdraw at the end of each year after retirement for each retirement age?

If she expects to live for 20 years in retirement if she retires at 65

If she expects to live for 15 years in retirement if she retires at 70