One plan to raise money for Texas schools involves an “enrichment tax” that could collect $56 for every student in a certain school district. If there are 50,000 students in the district and the cash flow begins 2 years from now, what is the present worth of the enrichment plan over a 5-year planning period at an interest rate of 8% per year?
Question 2 (5 points)
How much money would you have to pay each year in 8 equal payments, starting 2 years from today, to repay a $20,000 loan received from a relative today, if the interest rate is 8% per year?
Question 3 (5 points)
An industrial engineer is planning for his early retirement 25 years from now. He believes he can comfortably set aside $10,000 each year starting now. If he plans to start withdrawing money 1 year after he makes his last deposit (i.e., year 26), what uniform amount could he withdraw each year for 30 years, if the account earns interest at a rate of 8% per year?
Question 4 (5 points)
Lifetime savings accounts, known as LSAs, would allow people to invest after-tax money without being taxed on any of the gains. If an engineer invests $10,000 now and $10,000 each year for the next 20 years, how much will be in the account immediately after the last deposit if the account grows by 15% per year?
Question 5 (5 points)
By spending $10,000 now and $25,000 three years from now, a plating company can increase its income in years 4 through 10. At an interest rate of 12% per year, how much extra income per year would be needed in years 4 through 10 to recover the investment?
Question 6 (5 points)
Compute the present worth (year 0) of the following cash flows at i = 12% per year.
Year
Amount, $
Year
Amount, $
0
5000
8
700
1–5
1000
9
600
6
900
10
500
7
800
11
400
Question 7 (5 points)
When a uniform series begins at a time other than the end of period 1, it is called a ________ series.
Question 8 (5 points)
The present worth is always located __________ prior to the first uniform-series amount when using the P/A factor.
Question 9 (5 points)
For an interest rate of 10% per year compounded quarterly, determine the number of times interest would be compounded
(a) per quarter,
(b) per year, and
(c) per 3 years.
Question 10 (5 points)
An interest rate of 16% per year, compounded quarterly, is equivalent to what effective interest rate per year?
Question 11 (5 points)
What effective interest rate per year is equivalent to an effective 18% per year, compounded semiannually?
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
Do you need an answer to this or any other questions?
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will
direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.
