Fin 516 Week 4 Homework

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Week 3 Assignment 1

1. Calculating the Number of Periods
At 8 percent interest, how long does it take to double your money? To quadruple it?

FV = PV (FVF) 8%, t = ?
$2 = $1 (FVF) 8%, t = ?
$2/ 1 = 2.0; so for FVF at 8 %, “t” is approximately 9 years.

2. Perpetuities
An investor purchasing a British consul is entitled to receive annual payments from the British government forever. What is the price of a consul that pays $160 annually if the next payment occurs one year from today? The market interest rate is 4.5 percent.

PV = C / r
PV = $160 / 0.045
PV = $3,555.56

3. Present Value and Multiple Cash Flows
Investment X offers to pay you $6,000 per year for nine…show more content…

How much can you withdraw each month from your account assuming a 25-year withdrawal period?
Note. You may use Excel to answer this question.

1st PMT = 800, I = 11/12 = .9166, N = 30 * 12 = 360
Solve FV = 2,243,224.67 Stock 1st PMT = 350, I = 6/12 = .5, N = 30 * 12 = 360
Solve FV = 351,580.26
Bonds FV of Stocks and Bonds = 2,243,224.67 + 351,580.26 = 2594804.93 2nd I = 8/12 = .67, N = 25 * 12 = 300 PVA = 2594804.93 = C*[1 + {1 / [1 + (.067/12)^300} / (.067/12)] = PMT(0.067/12,300,2594804.93) = 17,845.97 or 17846

6. Growing Perpetuities
Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $210,000, received three years from today. Subsequent annual cash flows will grow at 3 percent, in perpetuity. What is the present value of the technology if the discount rate is 12 percent?

[210,000 / (12% - 3%)] / 1.12 = $2,083,333

7. Amortization with Equal Payments
Prepare an amortization schedule for a three-year loan of $69,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year? How much total interest is paid over the life of the loan?

Year | Beg. Balance | Total Payment | Interest Payment | Principle Payment | Ending Balance | 1 | $ 69,000.00 | $ 27,258.78 | $ 6,210.00 | $

Homework Assignment 1 Essay

858 WordsSep 7th, 20154 Pages

Homework Assignment 1
Natasha Dodson
Allied American University

Author Note
This paper was prepared for [ENG 160], [HOMEWORK ASSIGNMENT 1] taught by [MARC THOMPSON].

Essay Writing: Part 1
I. Introduction
II. Body
A. Traveling 1. Luggage 2. People 3. Airlines
B. Vendors 1. Restaurants 2. Souvenir Shops 3. Massage and Relaxation
C. Security Measures 1. Police 2. Transportation Security Administration and Homeland Security 3. Random baggage checks
III. Conclusion PART II
1. What is the thesis of Johnson’s essay? If it is stated directly, locate the relevant sentence or sentences. If it is implied, state the thesis in…show more content…

3. In paragraph 3, Johnson claims that Lou and his customers are fond of one another. How does she support that claim in the case of the golden-haired woman who is first mentioned in paragraph 26?
Johnson stated that Lou would “mock, tease, yell at, lecture, blame and ignore” his customers. So when Lou goes to deliver the food to the golden-haired woman he is rude to her; telling her he will basically put her food in her ashtray if she doesn’t move it. So the golden haired woman moves the ashtray so Lou may set her plate of food down. Johnson also stated that Lou’s customers treat him in the same disrespected manner. If Lou treats his guests with such manners I would like to know how he has any customers at all. I do however agree with the possible slogan “If I am polite, ask yourself what is wrong” for Lou’s Kozy Korner Koffee Shop.
4. Find a paragraph that appeals to three senses and identify those senses.
Paragraph 25- “Rag” Ben answers. He finds one, returns to the booth, and wipes the crumbs off the tabletop. A minute later he is back to drop a slice of ham on the hot grill. He and Lou stand side by side attending to their cooking as comfortable in their silence as an old married couple. When the ham is sizzling and its rich fragrance reaches far corners of the room. Ben slides it onto his plate and returns to his booth. Sight- There is much appealing to the sense of sight. The imagination can put together the scene of

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