Tutors Answer Your Questions about Money Word Problems (FREE)
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(52756)   |
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 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 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 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(52756) |
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(52756) |
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 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(52756) |
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 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(52756) |
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(52756) |
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(52756) |
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 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 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 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 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(52756) |
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(52756) |
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(52756) |
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(52756) |
Question 1206600: Suppose you can afford to pay at most $2650 per month for a mortgage payment. If the maximum amortization period you can get is 20 years, and you must pay 6% interest per year compounded annually, what is the most expensive house you can buy? How much interest will you have paid to the lender at the end of the loan?
Click here to see answer by ikleyn(52756) |
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