Question: Question 5 (20 marks) i. Would you be willing to pay $500 today in exchange for $10,000 in 30 years? What would be the key

 Question 5 (20 marks) i. Would you be willing to pay

Question 5 (20 marks) i. Would you be willing to pay $500 today in exchange for $10,000 in 30 years? What would be the key considerations in answering this question? Would your answer depend on if this arrangement was made with the Government of Canada or a fellow classmate at Humber College. Write a brief paragraph explaining your answer. (3marks) ii. Your friend Suzy Lugshery has just been offered an investment opportunity and asks for your advice. The opportunity involves an initial investment anywhere between $1,000 to $10,000, and promises a payout of twenty times the investment in just three years. Your friend Suzy asks you what the rate of return on this investment would be. Based on the results of your answer, what would you advise Suzy to do.? (3marks) in. Your best friend from Humber College has $45,000 to invest and wants to know how long it will take to double her money at 5.6% (1mark) Your grandparents had a coin collection dating back to 1962. This collection of coins was valued at $5 at that time. Your grandparents had given you this collection, however you are not allowed to sell it until 2060. Given an interest rate of 4.1%, how much will this coin collection be worth in 2060? (3marks) V. Your company income statements for the year end December 31, 2021 were just published, but due to a photocopy error the Net Sales and Gross sales were not legible. What you were able to find out was that Retained Earnings for the year were $65,240, Dividends $23,800. The following were the expenses incurred for the year. Salary expense $23,800, Rent $5,000, Depreciation $2,300 and Utilities $1,200. Your company tax rate is 20% and the Focus

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!