Finance Answers

3)You opened a saving account for your son 4 years ago and deposited $500 at that time. Three years ago, you added another $500 to the account. Last year, you deposited an additional $300 into this account. With an interest rate of 5% compounded annually, how much is in the account today?

4)Mike borrowed $150,000 from ABC Bank for 5 years at an interest rate of 12% compounded monthly. How much is his monthly loan payment?

1)Cash inflows expected from a project are $28,000 for year 1, $22,000 for year 2, $20,000 for year 3, $25,000 for year 4 and $20,000 for year 5. Given the discount rate of 10%, what is the total present value of cash flow of this project?

2)Melinda needs to accumulate $50,000. In order to do so, she plans to save at the start of every year starting today for 10 years with an interest rate of 10% per annum. How much will she need to deposit every year to reach that amount?

Neha would retire 30 years from today and she would need ₹ 6,00,000 per year after her retirement, with the first retirement funds withdrawn one year from the day she retires. Assume a return of 7% per annum on her retirement funds and if her planning is for 25 years after retirement, Calculate:

A. How much lump sum she should deposit in her account today so that she has enough funds for retirement?

B. How much she should deposit each year so that she has enough funds for retirement?

jon snow requires a loan of $15000. he enquires with three banks, bank A, bank B and bank C. bank A offers J24=6.8%; bank B offers J2=7% and bank C offers J1=6.95%. Which bank should jon get his loan from

a loan of $500 is to be paid with two payments of $300, one in 3 months, and another in 6 months. the compound interest charged per annum on the loan is;

a coupon bond is purchased for $900 with the maturity period of 6 years. the coupon payment of $50 is to be paid at the end of each half year. if the desired rate of return (yield rate) is J2=12% p.a. , then the face value of the bond is;

what annual deposits are needed for 10 years to provide for a perpetuity of $3000 per year with the first payment due at the end of 11, 1 year after the final deposit with J1 = 8% per annum

Suppose our company has a beta of 1.5. The market risk premium is expected to be 9%, and the current risk-free rate is 6%.
•We have used analysts’ estimates to determine that the market believes our dividends will grow at 6% per year and our last dividend was $2.
•Our stock is currently selling for $15.65. What is our cost of equity?

Explain the impact on cash flows of a build-up in inventory during this pandemic and how can companies mitigate the financial impact

What is the value today of $4,400 per year, at a discount rate of 8.3 percent, if the first payment is received 6 years from today and the last payment is received 20 years from today