2a. What is the shortest loan (36 months, 48 months, 60 months or 72 months) that has a monthly payment within your $500 budget that will allow you to buy the $30,000 car? Answer: Through Bank of America, I found a rate of 2.99% for the 36, 48 and 60 month loans. We are able to put down 20% and will need to finance $24,000. The shortest loan period for the $30,000 car that would be under our $500 limit is the 60 month loan at a rate of $431.13 per month.
The parent receives annual dividends from the subsidiary of $2,500,000. If the parent's marginal tax rate is 34% and if the exclusion on intercompany dividends is 70%, what is the effective tax rate on the intercompany dividends, and how much net dividends are received? Question 20 New York Waste (NYW) is considering refunding a $50,000,000, annual payment, 14% coupon, 30-year bond issue that was issued 5 years ago. It has been amortizing $3 million of flotation costs on these bonds over their 30-year life. The company could sell a new issue of 25-year bonds at an annual interest rate of 11.67% in today's market.
There are 4 possible outcomes in this scenario: 1) Sampson Team decides to race and finishes in the Top 5 50% Chance. Result: There were no definite numbers, but let’s guess and say that the new annual sponsorship is worth $1,000,000+. 2) Sampson Team decides to race and blows an engine 29.17% chance. Result: Loss of the $500,000 Oil Sponsorship plus $20,000 for the cost of an engine, for a total loss of $520,000, thereby moving the team to $552,500 in the hole. Also to be considered is that any time an engine blows in a race the driver is in danger.
The number of terms is n=10, the first term is a1=525, the common ratio is r = 1.05. Although the initial balance is $500, a1 = $525 because the first term of the sequence is at the end of the first year, so it must include the interest on the $500. The ending balance can now be found An = a1(rn-1) A10 = 525(1.05)9 A10 = 525(1.55132822) A10 = 814.447316 814.447316 can be rounded to 814.45, thus showing that the ending balance after 10 years is $814.45. The formula to solve this problem was found on page 229 in in Mathematics in Our World (Bluman,
If the dam were to be built anywhere lese then it would immediately cost 20 million more and it would not even have the potential to produce as much energy. At 60 Million Hetch-Hetchy is unbeatable. Other projects could cost as much at 80 Million. As an engineer it is the wisest decision in every manner to build in Hetch-Hetchy, we were
They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start investing $2400 per year to prepare for retirement. Tricia just told Tom, though, that she had heard that they would actually have more money the day they retire if they put $2400 per year away for the next 10 years – and then simply let that money sit for the next 35 years without any additional payments – than they would have if they waited 10 years to start investing for retirement and then made yearly payments for 35 years (as they originally planned to do). Please help Tom and Tricia make an informed decision: Assume that all payments are made at the end of a year, and that the rate of return on all yearly investments will be 8% annually. 1.
I came to this decision by using the feasibility analysis. The Juniper programs risk is too low to be competitive in the current market. The Palomino project does not have they reward to match the risk involved in the project. The ROI on the Palomino project would be $9000 per year for 5 years. The Stargazer, while it is the highest risk project, offers the most reward for the longest period of time.
State in a few words, what is an exponential function? What is the natural exponential function? Evaluate 4–1.5 using a calculator. Round your answer to three decimal places. The formula S = C (1 + r)^t models inflation, where C = the value today r = the annual inflation rate S = the inflated value t years from now Use this formula to solve the following problem: If the inflation rate is 3%, how much will a house now worth $510,000 be worth in 5 years?
,Sarah L. G January 6, 2013 Written Assignment #1 1. A) $1,000 with 5% interest after 10 years gives you $1,628. Therefore, you would gain $628 in interest. B) If the interest is withdrawn each year, a total of $500 would be earned because the $1,000 investment would earn $50 of simple interest each year. C) The answers are different because if the interest is left untouched, it makes the principal amount higher each year, giving more money after 10 years.
This is partly a practical decision given that we have not provided rates beyond 20 year term in the book. We use the quoted value for $250,000 policies pro-rated to the size of policy we need, and this is incorrect — policy premiums per dollar decline as the size of the policy rises, since some costs are fixed. However, it is the best we have, and the difference will not be