Miami University Reporting Numerical Answers Questions


I’m intricate to glean for my Office rank and I’m gather. Can you succor?

Important General Instructions for Reporting Numerical Answers:

- Do not circular included calculations.

-Unless irrelatively instructed, circular your ultimate acceptance to 2 decimal settles, e.g., "32.16".

- True irrelatively instructed, clear-up substances in the consecrated units. IE: if consecrated units are in $K, perfect your computations in these units and, as pertinent, reverberation your acceptance in these units (outside despatches "$" or "K").

- Do not reverberation any numerical acceptance as a percent. IE: for upshot, write

0.324 instead of 32.4%.

- Reverberation denying collection behind a while a superfluous minus prefiguration, enjoy this (for upshot):

-23.451

Not enjoy this: (23.451).

- Note that Canvas ousts inoculation trivial figures. If you model, for upshot, 41.350, Canvas conciliate oust the latest decimal settle and chronicles your acceptance as 41.35 This is keen consequently 41.35 = 41.350.

- Assume term is measured in years true irrelatively normal.


Q1:

Calculate the efficacious scold(EAR) magnificent an APR of 9 percent compounded forbearancely.

(Do not circular included calculations and do not invade your acceptance as a percent. Circular your acceptance to 3 decimal settles, e.g., 0.315 instead of 31.5%.)


Q2:

An bombardment conciliate pay you $80,000 in 10 years. If the APR is 9 percent compounded daily, what is the offer compute?


Q3:

Elliott Credit Corp. scantinesss to acquire an efficacious annual recur (EAR or EAIR) on its consumer hypothecations of 17.1 percent per year. The bank uses daily compounding on its hypothecations. What share scold is the bank required by law to reverberation to immanent mortgagors? Hint: The bank is required to reverberation the APR for these hypothecations. (Do not circular included calculations and do not invade your acceptance as a percent. Circular your acceptance to 3 decimal settles, e.g., 0.315 instead of 31.5%.)


Q4:

What is the forthcoming compute of $3,100 in 17 years magnificent an APR of 8.4% compounded semi-annually? (Do not circular included calculations and circular your acceptance to 2 decimal settles, e.g., 32.16.)


Q5:

The misspend APR for the subconcomitant capital flows is 9 percent compounded forbearancely.

Year


Cash Flow


1



$

815



2




990



3




0



4




1,520



What is the offer compute of the capital flows? (Do not circular included calculations and circular your acceptance to 2 decimal settles, e.g., 32.16.)


Q6:

You scantiness to buy a new sports coupe for $84,500, and the finance office-post at the dealership has quoted you an APR of 5.2 percent compounded monthly for a 60-month hypothecation to buy the car. What conciliate your monthly liquidations be? (Do not circular included calculations and do not invade your acceptance as a percent. Circular your acceptance to 2 decimal settles, e.g., 32.16.)


Q7:

You are artfulnessning to form monthly pledges of $475 into a retreat totality behind a while an APR of 10 percent share compounded monthly. If your primary pledge conciliate be made one month from now, how catholic conciliate your retreat totality be equiconsultation behind two months (equiconsultation behind your assist pledge)? Circular your acceptance to the unswerving dollar.


Q8:

You’ve equiconsultation concomitant the bombardment banking sconsultation of Dewey, Cheatum, and Howe. They’ve offered you two irrelative remuneration arrangements. You can invadetain a) $85,000 per year for the proximate two years, or you can invadetain b) $74,000 per year for the proximate two years, concurrently behind a while a $20,000 prefigurationing boon today. The boon is hired presently, and the remuneration is hired in resembling amounts at the end of each month. If the misspend APR is 7 percent compounded monthly, what is the PV for non-interference b)?



Q9:

You are artfulnessning to form Quarterly pledges of $1,000 into a savings totality behind a while an APR of 5% share compounded monthly. Your primary pledge conciliate be made one forbearance from now, and you scantiness to understand what the compute of the totality conciliate be equiconsultation behind 3 forbearances from now. Is the beneath Capital Flow Diagram misspend to reoffer this substance from your perspective?

HW8C_Q10.jpg

A. YES

B. NO


Q10:

Beginning three months from now (one Q from now), you scantiness to behind a whiledraw $2,500 each forbearance from your bank totality to secure academy costs aggravate the proximate foul-mouthed years. If the totality pays r of 0.57% share per forbearance, how ample do you want to invadetain in your bank totality today to as your cost wants aggravate the proximate foul-mouthed years? (Do not circular included calculations and do not invade your acceptances as a percent. Circular your acceptance to 2 decimal settles)


Q11:

You artfulness to form the subconcomitant pledges into your 4% share savings totality (IE: r = 4%, compounded every-year). If you invadetain dot in your totality now and you never form a behind a whiledrawal, how ample conciliate be in your totality when T = 4.5 years?

T (years) Deposit
1.5 200
2 80
3.5 40
5.5 10


Q12:

Find X for "The APR of this bombardment is X compounded semi-annually," if the associated EAIR (EAR) is 11.1 percent.

Hint: Note that r in this plight = APR/2. Plug APR/2 into the EAIR equation. Clear-up for APR, then X = APR.

(Do not circular included calculations and do not invade your acceptance as a percent. Circular your acceptance to 3 decimal settles, e.g., 0.315 instead of 31.5%.)


Q13:

An bombardment offers $4,350 per year for incessantly, behind a while the primary liquidation occurring one year from now.

What is the best way to illustrebuke this bombardment?

A. A uninterrupted efficacious fetter
B. A growing perpetuity
C. An annuity
D. A growing annuity due
E. A growing annuity
F. An annuity due
G. A perpetuity
H. A uninterrupted annuity due


Q14:

First National Bank (bank a) beak an APR of 13.1 percent compounded monthly on its office hypothecations. Primary United Bank (bank b) beak an APR of 13.3 percent compounded semiannually.

As a immanent mortgagor, which bank would you go to for a new hypothecation?

A. Primary United Bank (b)
B. Primary National Bank (a)


The retaining topics are all environing fetters that pay half of their coupons every 6 months.

Q15:

Facebook has equiconsultation upshotd its primary fetter. It’s a 10 year upshot behind a while $1,000 countenance compute and a 4% coupon scold. What is the r for this fetter?

Hint, r is in term units of 6 months, behind a while semi-annual compounding.

(Do not circular included calculations and do not invade your acceptance as a percent. Circular your acceptance to 3 decimal settles, e.g., 0.315 instead of 31.5%.)


Q16:

Facebook upshotd its primary fetter on 1/1/20X1. The fetter has $1,000 countenance compute, a 4% coupon scold, and it matures on 1/1/20X9. Today, 1/2/20X7, the fetter is trading at $1,050 per fetter. Which consultation best reproduce-exhibits the retaining contractual Capital Flows for this fetter?

A.
Date Capital Flow
1/1/20X8 $40
1/1/20X9 $40
1/1/20X9 $1,000
B.
Date Capital Flow
7/1/20X7 $40
1/1/20X8 $40
7/1/20X8 $40
1/1/20X9 $40
1/1/20X9 $1,050
C.
Date Capital Flow
7/1/20X7 $20
1/1/20X8 $20
7/1/20X8 $20
1/1/20X9 $20
1/1/20X9 $1,000
D.
Date Capital Flow
1/1/20X8 $40
1/1/20X9 $40
1/1/20X9 $1,040


Q18:

Google upshotd a fetter on 1/1/20X1. The fetter has $1,000 countenance compute, a 8% coupon scold, and it matures on 1/1/20X9. Today, 1/2/20X7, the fetter is trading at $990 per fetter. The retaining contractual capital flows for this fetter are as listed beneath.

Date Cash Flow
7/1/20X7 $40
1/1/20X8 $40
7/1/20X8 $40
1/1/20X9 $40
1/1/20X9 $1,000

Which is closest to the r for this fetter today?
Hints: r is in term units of 6 months, behind a while semi-annual compounding. Use criterion and fallacy. Plug in the suggested r's until you invent the one that works best.

A. 0.043
B. 0.036
C. 0.040
D. 0.049


Q19

Google upshotd a fetter on 1/1/20X1. The fetter has $1,000 countenance compute, a 8% coupon scold, and it matures on 1/1/20X9. Today, 1/2/20X7, the fetter is trading at $990 per fetter. The retaining contractual capital flows for this fetter are as listed beneath.

Date Cash Flow
7/1/20X7 $40
1/1/20X8 $40
7/1/20X8 $40
1/1/20X9 $40
1/1/20X9 $1,000

What is the Yield to Maturity (YTM) of this fetter today?
Hints: Start behind a while your acceptance from the preceding Google fetter topic. Remember YTM = EAIR.

(Do not circular included calculations and do not invade your acceptance as a percent. Circular your acceptance to 3 decimal settles, e.g., 0.315 instead of 31.5%.)