Financial Math Answers

eric deposits $3,200 at 5.73% interest compounded continuously for 6 years what is the ending balance

Using exponential functions. You take out Php 20,000 loan at a 5% interest rate compounded anually. How much will you owe after 10 years?

Three friends Alice(A), Bob(B), and Charlie(C) are planning to buy a TV.

TV’s are available in all sizes (size is the diagonal length of the display in

inches). Each friend i has a private valuation of the form

v_i(x) = a_ix − x^3/36

for a TV of size x, where i ∈ {A, B, C}

(a)

Use the VCG mechanism to decide which size of the TV should be

bought. Describe the size as a function of a_A, a_B, a_C.

(b)

Compute the payments for each friend under the VCG mechanism in

the situation where Alice has a_A = 10, Bob has a_B = 40, and Charlie

has a_C = 50.

Given the demand function for computer as p=2400-0.5Q determine the coefficient of point of elasticity of demand when p=1800

Conrad's employer offers graded vesting plan. Every year after the first year, vesting increases 10% with a 2.5% multiplier. If Conrad's three-year average salary was $67,453, and he left after the fourth year, what will his benefit be?

a. $2,023.59 b. $5,058.98 c. $2,698.12 d. $6,745.30

Which would result in the need for a larger monthly deposit to a retirement account with the same ending balance?

a. half the number of years before the money is withdrawn from the account b. half the interest rate

Jon's average salary over the last 3 years was $78,291. He worked at the company for 4 years so was 60% vested in his retirement plan. If his multiplier is 2.21% and his pension plan was based on the final 3 salary years, what is his annual pension?

a. $2,760.37 b. $4,152.55 c. $20,762.77 d. $62,632.80

Alicia makes $52,000 per year. Her company offers a 401(k) retirement plan in which they will match 50% of her contributions up to 10% of her salary. She can make contributions up to a maximum of 25% of her salary. Alicia only wants to contribute an amount equal to her employer's maximum contribution to her account. How much should she contribute monthly?

a. $216.67 b. $1,083.33 c. $108.33 d. $433.33

Sarah had been contributing $300 pre-tax per month to a retirement account that pays 2.16% interest compounded monthly. After 10 years, she needs to withdraw 25% of the money from her account. If the early withdrawal penalty is 10% of the amount withdrawn, how much will she have to pay?

a. $1,003.59 b. $40,143.57 c. $4,014.36 d. $10,035.89

Sergio plans to retire in 15 years. He would like to have $250,000 in his retirement account. If he invests in a plan that pays 4.69% interest compounded monthly, how much should he contribute monthly?

a. $138.89 b. $277.88 c. $959.77 d. $560.23

Jane plans to retire in 30 years and would like to have $500,000 in her account. If the interest on her account is 3.92% compounded monthly, how much should she put into her account every month?

a. $1,633.33 b. $1,388.89 c. $730.74 d. $653.33

Yohe Technology’s stock is expected to pay a dividend of $2.00 a share at the end of the year. The stock currently has a price of $40 a share, and the stock’s dividend is expected to grow at a constant rate of g percent a year. The stock has a beta of 1.2. The market risk premium, k_M – k_RF, is 7 percent and the risk-free rate is 5 percent. What is the expected price of Yohe’s stock 5 years from today?