What is the difference between simple interest and compound interest?

Suppose you have $500 to invest and you believe that you can earn 8% per year over the next 15 years.

How much would you have at the end of 15 years using compound interest?

How much would you have using simple interest?

What is the relationship between present value and future value?

Suppose you need $15,000 in 3 years. If you can earn 6% annually, how much do you need to invest today?

If you could invest the money at 8%, would you have to invest more or less than at 6%? How much?

What are some situations in which you might want to know the implied interest rate?

You are offered the following investments:

You can invest $500 today and receive $600 in 5 years. The investment is considered low risk.

You can invest the $500 in a bank account paying 4%.

What is the implied interest rate for the first choice and which investment should you choose?

When might you want to compute the number of periods?

Suppose you want to buy some new furniture for your family room.

You currently have $500, and the furniture you want costs $600.

If you can earn 6%, how long will you have to wait if you don't add any additional money?

You have $10,000 to invest for five years.

How much additional interest will you earn if the investment provides a 5% annual return, when compared to a 4.5% annual return?

How long will it take your $10,000 to double in value if it earns 5% annually?

What annual rate has been earned if $1,000 grows into $4,000 in 20 years?

XYZ has the following financial information for 2018:

Sales = $2M, Net Inc. = $0.4M, Div. = $0.1M

C.A. = $0.4M, F.A. = $3.6M

C.L. = $0.2M, LTD = $1M, C.S. = $2M, R.E. = $0.8M

What is the sustainable growth rate?

If 2019 sales are projected to be $2.4M, what is the amount of external financing needed, assuming XYZ is operating at full capacity, and profit margin and payout ratio remain constant?

What is the purpose of long-range planning?

What are the major decision areas involved in developing a plan?

What is the percentage of sales approach?

How do you adjust the model when operating at less than full capacity?

What is the internal growth rate?

What is the sustainable growth rate?

What are the major determinants of growth?

Should managers overstate budget requests (or growth projections) if they know that central headquarters is going to cut funds across the board?