Tutors Answer Your Questions about Money Word Problems (FREE)
Question 1179080: Grandma decides to put 1300 dollars every month into an account for you. She makes 23 monthly deposits, the last coming September 1, 2003 - the day you start college. She wants you to be able to withdraw money from this account at the beginning of each month, with the first withdrawal coming September 1, 2003 and the last coming June 1, 2008, (when you'll graduate). (Note: that makes 58 withdrawals total.) How much will you be able to withdraw each month if the account is earning a nominal interest rate of 9.3 percent convertible monthly?
Click here to see answer by ikleyn(52747)   |
Question 1167471: Kenneth ran into some money and decides to invest it for retirement. He has $75,000 to invest over
40 years. Find the effective rates given:
(a) 4.5% growth compounded monthly.
(b) 4.45% growth compounded continuously.
(c) Should Kenneth invest in option (a) or option (b)? Why?
Click here to see answer by ikleyn(52747) |
Question 1168397: Jimmy went out to lunch 3 times last week and each time he went it cost him $10.58. He went to the movie theaters last week which cost him $15.60 . Jimmy worked at his local grocery store earning a wage of $10 an hour, and worked 30 hours last week. He also bought a new pair of pants for work that cost him $25 last week. What were his total cash outflows for the previous week?
Click here to see answer by ikleyn(52747) |
Question 1168394: Jimmy went out to lunch 3 times last week and each time he went it cost him $10.58. He went to the movie theaters last week which cost him $15.60 . Jimmy worked at his local grocery store earning a wage of $10 an hour, and worked 30 hours last week. He also bought a new pair of pants for work that cost him $25 last week. What were his total cash outflows for the previous week?
Click here to see answer by ikleyn(52747) |
Question 1168821: 1. Wen Seng operates an ice cream shop. He is trying to decide whether to expand his business to include ice cream cakes. He will need some additional space that will cost him $7,400 per year at the end of each year and some additional equipment that will cost $14,000 up front. The ice cream cakes will provide an extra income of $13,000 per year at the end of each year. The business is expected to last 25 years. The discount rate (or interest rate) for Wen Seng's new business is 6%. What is the Net Present Value of the ice cream cake project? (Assume there are no taxes.)
Thank you so much.
Click here to see answer by CPhill(1959)  |
Question 1169070: Barinda is considering running for student government. However, she knows she will
have to work about 10 hours fewer per week if elected, and she makes $7 an hour. The
campaign will also cost her about $100 in campaign buttons and posters. What is her
opportunity cost for serving on student government if elected if she actively serves for 30
weeks?
Click here to see answer by CPhill(1959) |
Question 1169071: Amber would like to go on the field trip this Saturday. However, she was scheduled to
work 10 hours and she makes $8.50 an hour. Additionally, the field trip activity fee was
$30. What is her opportunity cost to go on the field trip?
Click here to see answer by CPhill(1959) |
Question 1169073: Graham decided to play football this year instead of getting a part-time job. Last year he
made about $1,100 during football season. He also spends about $9 on eating out after
each game. His team plays a 10-game season. What is his opportunity cost of playing
football?
Click here to see answer by CPhill(1959) |
Question 1168937: Suppose that you save for retirement by contributing the same amount each month from your 23rd birthday until your 65th birthday, in an account that pays a steady 5% annual interest compounded monthly.
a) How much will be in your fund at age 65 if you save $ 100 a month?
b) How much will be in your fund if you get a steady return of 7.5% compounded monthly?
c) How much will be in your fund if you get a steady return of 10% compounded monthly? (This is comparable to the average annual return of about 11% for all stocks on the New York Stock Exchange from 1950 to 2000
Click here to see answer by ikleyn(52747) |
Question 1169158: Graham decided to play football this year instead of getting a part-time job. Last year he
made about $1,100 during football season. He also spends about $9 on eating out after
each game. His team plays a 10-game season. What is his opportunity cost of playing
football? Can it be solved ASAP
Click here to see answer by ikleyn(52747) |
Question 1169160: Amber would like to go on the field trip this Saturday. However, she was scheduled to
work 10 hours and she makes $8.50 an hour. Additionally, the field trip activity fee was
$30. What is her opportunity cost to go on the field trip? Can it be solved ASAP
Click here to see answer by ikleyn(52747) |
Question 1169160: Amber would like to go on the field trip this Saturday. However, she was scheduled to
work 10 hours and she makes $8.50 an hour. Additionally, the field trip activity fee was
$30. What is her opportunity cost to go on the field trip? Can it be solved ASAP
Click here to see answer by timofer(104) |
Question 1209975: Maureen opened a savings account and deposited $800.00 as principal. The account earns 5% interest, compounded annually. What is the balance after 6 years?
Use the formula A=P1+
r
n
nt, where A is the balance (final amount), P is the principal (starting amount), r is the interest rate expressed as a decimal, n is the number of times per year that the interest is compounded, and t is the time in years.
Round your answer to the nearest cent.
Click here to see answer by ikleyn(52747) |
Question 1169542: i need this for my exam plz help me if you can
Research shows that the demand function for a new product is d(x) = - 5x + 18, where x represents the number of items in thousands and d represents the item price in $.The cost function is C(x) = 2x + 9.
a. State the Revenue function R(x)
b. Find the corresponding Profit function P(x).
c. How many items must be sold to maximize profit?
c. How many items must be sold for the company to break even?
Hint: R(x) = x p(x). The profit function is the difference P(x) = R(x) - C(x).
Click here to see answer by CPhill(1959) |
Question 1170479: the officers of a bigh school senior class are planning to rent Buses and vans for a class trip. Each bus can transport 56 students, requires to chaperones, and cost $1200 to rent. Each van can transport eight students, requires one chaperone and cost $120 to rent. Since they are 504 students in the senior class that may be eligible to go on a trip, the opposite of us plan to accommodate at least 504 students. It's only 28 parents having volunteer to serve as chevrons, the officers must plan to use it at most 28 chaperones. How many vehicles of each type should the officers are in order to minimize the transportation cost? What are the minimal transportation cost?
Click here to see answer by ikleyn(52747) |
Question 1170478: A man is considering the purchase of a used automobile. The total price is $6200. With $1240 as a down payment, and the balance to be paid in 48 equal monthly payments with interest rate at 12% compounded monthly. The payments are due at the end of each month. Determine the monthly payment required.
Click here to see answer by ikleyn(52747) |
Question 1170648: Calculate the present value of $5,000 received five years from today if your investments pay
a. 6 percent compounded annually
b. 8 percent compounded annually
c. 10 percent compounded annually
d. 10 percent compounded semiannually
e. 10 percent compounded quarterly
What do your answers to these questions tell you about the relation between present values and interest rates and between present values and the number of compounding periods per year?
Click here to see answer by CPhill(1959) |
Question 1170650: Calculate the present value of the following annuity streams:
a. $5,000 received each year for 5 years on the last day of each year if your investments pay 6 percent compounded annually.
b. $5,000 received each quarter for 5 years on the last day of each quarter if your investments pay 6 percent compounded quarterly.
Click here to see answer by CPhill(1959) |
Question 1170652: . Calculate the fair present values of the following bonds, all of which pay interest semiannually, have a face value of $1,000, have 12 years remaining to maturity, and have a required rate of return of 10 percent.
a. The bond has a 6 percent coupon rate.
b. The bond has a 8 percent coupon rate.
c. The bond has a 10 percent coupon rate.
d. What do your answers to parts
(a) through (c) say about the relation between coupon rates and present values?
Click here to see answer by CPhill(1959) |
Question 1209929: The Pireras are planning to go to Europe 4 years from now and have agreed to set aside $180/month for their trip. If they deposit this money at the en each month into a savings account paying interest at the rate of 3%/year compounded monthly, how much money will be in their ‘travel fund at the end of the fourth year? (Round your answer to the nearest cent.)
Click here to see answer by ikleyn(52747) |
Question 1209929: The Pireras are planning to go to Europe 4 years from now and have agreed to set aside $180/month for their trip. If they deposit this money at the en each month into a savings account paying interest at the rate of 3%/year compounded monthly, how much money will be in their ‘travel fund at the end of the fourth year? (Round your answer to the nearest cent.)
Click here to see answer by CPhill(1959) |
Question 1171213: Cricket World Cup (CWC) is considering a project proposal which requires an initial investment of $72,625 and it is expected to have net cash flows of $15,000 per year for 8 years. The firm cash flows are discounted at a rate of 12 percent.
a. What is the project’s Net Present Value (NPV)? (Rounded to 2 decimal places)
b. What is the project’s discounted payback period? (Rounded to 2 decimal places)
Click here to see answer by CPhill(1959) |
Question 1171791: a predator requires 21 units of food A 12 units of food B, and 21 units of food C as its average daily consumption. these requirements are satisfied by feeling on two prey species. one prey of species A, provides 6,2 and 3 units of food of A,B, and C, respectively. to capture and digest a prey of species B provides 3,3 and 5 units of A, B and C, respectively. to capture and digest a prey of species A requires 7 units of energy, on the average. the corresponding energy. How many preys of each should the predator capture to meet its food requirement with minimum expenditure? find the objective function, constraints and max/min value.
Click here to see answer by ikleyn(52747) |
Question 1171791: a predator requires 21 units of food A 12 units of food B, and 21 units of food C as its average daily consumption. these requirements are satisfied by feeling on two prey species. one prey of species A, provides 6,2 and 3 units of food of A,B, and C, respectively. to capture and digest a prey of species B provides 3,3 and 5 units of A, B and C, respectively. to capture and digest a prey of species A requires 7 units of energy, on the average. the corresponding energy. How many preys of each should the predator capture to meet its food requirement with minimum expenditure? find the objective function, constraints and max/min value.
Click here to see answer by CPhill(1959) |
Question 1171817: You are considering three invest¬ments. The first is a bond that is selling in the market at RM1,200. The bond has a RM 1,000 par value, pays interest at 14 percent, and is scheduled to mature in 12 years. For bonds of this risk class you believe that a 12 percent rate of return should be required. The second investment that you are analyzing is a preferred stock (RM100 par value) that sells for RM80 and pays an annual dividend of RM 12. Your required rate of return for this stock is 14 percent. The last investment is a common stock (RM35 par value) that recently paid a RM3 dividend. The firm’s earnings per share have increased from RM4 to RM8 in 10 years, which also reflects the expected growth in dividends per share for the indefinite future. The stock is selling for RM25, and you think a reasonable required rate of return for the stock is 20 percent.
a. Calculate the value of each security based on your required rate of return.
b. Which investment(s) should you accept? Why?
c. 1. If your required rates of return changed to 14 percent for the bond, 16 percent for the preferred stock, and 18 percent for the common stock, how would your answers change to parts (a) and (b)?
2. Assuming again that your required rate of return for the common stock is 20 percent, but the anticipated growth rate changes to 12 percent, would your answers to parts (a) and (b) be different
d. Explain the relationship between an investor’s required rate of return and the value of a security.
Click here to see answer by CPhill(1959) |
Question 1209843: How long do you need to invest your money in an account earning an annual interest rate of 5,624% compounded daily so that your investment grows from $1380.96 to $10369 over that period of time? give answer in days
Click here to see answer by ikleyn(52747) |
Question 1209843: How long do you need to invest your money in an account earning an annual interest rate of 5,624% compounded daily so that your investment grows from $1380.96 to $10369 over that period of time? give answer in days
Click here to see answer by CPhill(1959) |
Question 1171794: a fruit shake stand sells banana and mango shakes. to be profitable, it must sell at least 10 orders of banana shakes per day. due to limited space, however, no more than 40 orders of banana shakes or 70 orders of mango shakes can be served. even the total number of orders for the day cannot exceed 90. if profit is Php 32 for each banana shake sold and Php 32 for each mango shake, how many of each kind should the vendor sell in order to maximize profit? find the objective functions, constraints and max/min value.
Click here to see answer by ikleyn(52747) |
Question 1173640: Payments of $3,600, due 50 days ago, and $4,100, due in 40 days, are to be replaced by payments of $4,000 due today and the balance due in 30 days. What must the second payment be if the payee is to end up in an equivalent financial position? Money now earns 8.75%. Use 30 days from now as the focal date.
Second payment=
Click here to see answer by CPhill(1959) |
Question 1173889: Aya and Harumi would like to buy a house and their dream house costs $500,000. They have $50,000 saved up for a down payment but would still need to take out a mortgage loan for the remaining $450,000 and they’re not sure whether they could afford the monthly loan payments. The bank has offered them an interest rate of 4.25%, compounded monthly.
Q1 How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years?
Q2 What is the total amount that would be paid to the lender after 25 years of payments?
Q3 What if Aya and Harumi could only afford a monthly payment of $2,000? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same?
Q4 What is the total amount that would be paid to the lender over 25 years?
Click here to see answer by CPhill(1959) |
Question 1209810: John invested his money at a nominal interest rate of 12% compounded annually but the inflation rate at that time is equal to 5%. Determine the effective interest rate that John will receive considering the inflation rate.
Click here to see answer by CPhill(1959) |
Question 1175974: 1. Cris Adolfo borrowed Php80,000 at 10.4 % simple interest for 130 days. On day 40, July 3, of the loan, he made a partial payment of Php 12,500. He made another payment of Php 14,500 that pays Php 790.68 of interest.
a. When did Cris made the second partial payment.?
b. How much is being paid to his loan in his 2nd partial payment?
c. How much does he needs to pay on the due date?
Click here to see answer by CPhill(1959) |
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