Time for a new problem. You want to borrow $200,000 at 4% interest compounded monthly. If you can

afford to make monthly payments of only $1200/month, how many months (cell J14 on the sample output)

will it take you to pay off the loan completely? How many years

2.What is the Estimated Cost of Goods Sold? What is the Estimated Ending Inventory?

January 1... $190,000

January 1 through September 5 purchases (net)... $352,000

January 1 through September 5 sales (net)...$685,000

Year 2015 estimated gross profit rate...44%

3.Charger Battery issued $200,000 of 11%, 7-year bonds on January 1, 2020, for $220,132. Interest is paid annually on December 31. The market rate of interest is 9%.

Prepare the journal entries for December 31, 2021 and 2022. If required, round your answers to the nearest whole dollar.

4.Crafty Corporation issued $475,000 of 5%, 7-year bonds on January 1, 2020, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%.

Prepare the journal entry for December 31, 2020 and 2021.

5.A person has 100 $.

The person spends 40 $ and retains 60 $.

The person spends 30 $ and retains 30 $.

The person spends 18 $ and retains 12 $.

The person spends 12 $ and retains 0 $.

Total spent = $100.

Total retained = $102.

Explain the inequality in the balancing, why total spent is not equal to total retained. Where does the extra $2 come from ?

6.In perspective, if you won a $25 million lottery, would you take the lump sum prize of $17 million immediately or the annual annuity of $1 million dollars for the next 25 years?

7.S&P Enterprises will pay an annual dividend of $2.08 a share on its common stock next year. Last week, the company paid a dividend of $2.00 a share. The company adheres to a constant rate of growth dividend policy. What will one share of S&P common stock be worth ten years from now if the applicable discount rate is 8 percent?

8.Rosita's announced that its next annual dividend will be $1.65 a share and all future dividends will increase by 2.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock if you require a 12 percent rate of return?

9.Otto Enterprises has a 15-year bond issue outstanding with a coupon of 8 percent. The bond is currently priced at $923.60 and has a par value of $1,000. Interest is paid semiannually. What is the yield to maturity?

10.New Corp. last paid a $1.50 per share annual dividend. The company is planning on paying $1.62, $1.68, $1.75, and $1.80 a share over the next four years, respectively. After that the dividend will be a constant $2.25 per share per year. What is the market price of this stock if the market rate of return is 15 percent?