...uncertainty. As scripture reminds, “we do not know what will happen tomorrow”. Sadly the fulfillment of our dreams can sometimes turn into nightmares. This remind us not only of the uncertainty of life, but also of the need to align our desires with God’s Will. Experience us that if we allow presumption to our lives, the fulfillment of our own compulsive dreams may turn to dust and ashes. There is a legitimate desire, to be sure, but my mother thought on how to approach them. Instead of presuming that our plans an dreams will be fulfilled, we ought to say, “If the Lord will, we shall live and to this or that.” When we submit our plans our plan’s to God’s will, we can enjoy his peace in the midst of life’s uncertainty. In the next 5 years, it’s difficult to envision such an existence and future. All I know is , I will give my very best to achieve those dreams of mine, I don’t want to give a definite insight with regards to my future because only god knows what will happen tomorrow, the next day or in the near future. But one thing is for sure. I will strive and aim for my lofty ambitions and creativity. And no matter what my occupation is, or my status in life. Or what kind of family I have. I must keep work in perspective. And as long as I trust in God I will never be failed. “Do not live minimally. Live life to the maximum! Climb that mountain with confidence. That’s my quotation in...
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...1 Introduction.................................................................................................................. 1 2. Problem Definition.................................................................................................. 2.1 Research question 3. Research Design 3. 1 Secondary Research Design 3.1.1 Social Listening System 3.2. Primary Research Design........................................................................ 3.2.1 Development of a Questionnaire.............................. 3.2.2 Development of a Focus Group......................... 4. Conclusion...................................................................................................... 5. Reference List................................................................................................... 6. Affidavit......................................................................................... 7. Appendix................................................................................................. 1. Introduction Social Media has made a huge impact to the entire world and not just to internet marketers. It changed the way in which we communicate – both personally and professionally. In the time before the development of the various social media platforms, the classical mass medias like Television, Radio and Newspapers were great tools to reach a huge audience. But these were tipically one way channels. You could reach out to people via these channels...
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...Five years at an interest rate of 5% per year. 2000x 1.05^5= 2552.56 B. Ten years at an interest rate of 5% per year. 2000x1.05^10= 3257.79 C. Five years at an interest rate of 10% per year 2000x1.1^5= 3221.02 D. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? In the last 5 years you gain more interest on the interest already earned in the beginning 5 years and you get interest on the first $2,000. #4 What is the present value of $10,000 received? A. Twelve years from today when the interest rate is 4% per year? PV= 10,000/1.04^12= 6,245.97 B. Twenty years from today when the interest rate is 8% per year? PV= 10,000/1.08^20= 8,879.71 C. Six years from today when the interest rate is 2% per year? PV= 10,000/1.02^6= 8,879.71 #9 You are thinking of retiring. Your retirement plan will pay you either $250,000 immediately on retirement or $350,000 five years after the date of your retirement. Which alternative should you choose if the interest rate is: A. 0% per year? 350,000/1.0^5= 350,000 B. 8% per year? 350,000/1.08^5= 238,204 C. 20% per year? 350,000/1.2^5= 140,657 I would take the 250,000 #14 You have been offered a unique investment opportunity. If you invest $10,000 today you will receive $500 one year from now, $1500 two years from now...
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...Ch. 5 Study Problems Joseph R. Landini University of Phoenix Finance for Business FIN/370 Professor: Jim Hill March 22, 2010 Chapter 5: Financial Management: Principles and Applications 5-1A A. $5,000 invested for 10 years at 10 percent compounded annually: 5,000 10 years @ 10% = 12,968.71 B. $8,000 invested for 7years at 8 percent compounded annually: 8,000 7 yrs. @ 8% = 13,710.59 C. $775 invested for 12 years at 12 percent compounded annually: 775 12 yrs. @ 12% = 3,019.38 D. $21,000 invested for 5 years at 5 percent compounded annually: 21,000 5yrs. @ 5% = 26,801.91 5-4A A. $800 to be received 10yrs from now discounted back to the present at 10% = 308.43 B. $300 to be received 5yrs from now discounted back to the present at 5% = 235.06 C. $1,000 to be received 8yrs from now discounted back to the present at 3% = 789.41 D. $1,000 to be received 8yrs from now discounted back to the present At 20% = 232.57 5-5A A. $500 a yr for 10yrs compounded annually at 5% = 6603.30 B. $100 a yr for 5 yrs compounded annually at 10% = 671.56 C. $35 a yr for 7 yrs compounded annually at7% = 365.26 D. $25 a yr for 3 yrs compounded annually at 2% = 78.04 5-6A A. $2,500 a year for 10 yrs discounted back to the present at 7% = 17,558.95 B. $70 a yr for 3 yrs discounted back to the present at 3 % = 198.00 C. $280 a year for 7yrs discounted back to the present at 7 % = 1,563.07 D. $500 a yr for...
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...interest, total) with simple interest: a) yearly rate 5%, for 6 years and 4 months b) yearly rate 8%, for 7 years, 2 months and 15 days 2) With a starting investment of 3.65 how long does it take to have a final total value of 4.779 with a 5.2% yearly rate, simple interest ? 3) 10 years ago you deposited 15.6 in a bank account paying 5% (yearly compounding). Six years ago you withdraw 8.465 from the same account and reinvested the same amount at 7.25% (yearly) How much is available now (total)? 4) 3 years ago your parents opened a “saving account” in your favour with a bank paying a 10.75% yearly interest rate. How much do you own today for each € deposited? 5) You borrow, as an overdraft on your current account, 50 with an Italian bank charging you a nominal yearly rate of 18%. How much is your debt with the same bank two years later (Italian banks use Nominal Rates convertible quarterly)? 6) You are entitled to receive 100, 3 years from now. What is the present value of your credit discounted at 16% yearly rate? 7) Your bank charges a 16% yearly nominal rate (quarterly compounding) for a loan in your current account; how much will you pay after 3 years for a 400 loan? 8) How much do you have to invest to have 50 after 4 years with a 12% yearly return? 9) An initial bank deposit of 10 is equal to 50 after 10 years, find the yearly interest rate (compound). 10) How much should you invest today in order to have 30 after 5 years if a yearly yield of 18% is expected? 11) If 20 are...
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...specified in parentheses. There are 220 total points. 3) Circle your numerical answers. This makes it easier for me to find them. Show all calculations and the inputs of all values solved for using your calculator or Excel. This allows me to determine how your numbers were arrived at. If you get stuck on the math, tell me what the correct answer should be based on your intuition. Incorrect numerical answers based on the correct logic will receive partial credit. 4) Your answer should be given in the space provided. If you need more space, feel free to write on the back of the page, but clearly mark the question number you are answering. If you would like to add pages from your Excel spreadsheet, please staple them following the corresponding question. You may also upload your spreadsheet to Blackboard. 5) As always, I expect you to abide by the honor code. I trust that no one will give or receive assistance which gives them an unfair advantage over other students. You should not speak about the exam to anyone who has not yet completed it. Please write the following below, consistent with the Smith School Honor Code: "I pledge on my honor that I have not given or received any unauthorized assistance on this exam." 6) Statements by you which are true, but do not answer the question, will not raise your score. Statements that are incorrect will reduce your score. | | | |Question...
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...value of pay off is considered. Questions 9, 10, and 11 give Mr. Smith 3 options: * Option 1: Harvest all crop trees now and receive $8,160 * Option 2: Let the forest grow without thinning, then harvest all crop trees 60 years from now and receive $537,962.01 at harvesting, equivalent to $28,800.08 now * Option 3: Thin and manage the forest, then harvest all crop trees 50 years from now and receive $670,033.56 at harvesting, equivalent to $58,429.42 now Based on the present value of the money received at harvesting, it is highly recommended that Mr. Smith should choose option 3. Furthermore, provided Mr. Smith decides to thin and manage his forest, in case he needs money soon to use for other purposes, he can harvest all of his crop trees at the 40th year to receive $410,608.68 at harvesting, equivalent to $58,325.19 at present, instead of waiting for 10 more years. This is because the present value of money received at the 40th year is just a little ($104.23) less than that of money received at the 50th year. Section 2 – Analysis Question 1 In order to choose the best offer, the amount of payment in each offer is discounted to present at the discount rate of 10%. This is just a basic discounting problem, using the formula PV=FV(1+r)t In this formula, FV is the amount of payment, r is the discount rate of 10%, t is the number of years from now in each offer. Table 1 in the appendix summarizes the present value of payment in each offer. It also shows that offer...
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...David is the founder of the now world-famous website and Youtube channel MBAbullshit.com with 1 MILLION+ FREE tutorial video views worldwide on YouTube (as of May 2012) Beat The Bullshit This book aims to explain some the most "seemingly complicated" topics in these fields in a conceptual way, rather than explaining the common "how to calculate" way, which is much, much better explained and more easily understood in my step-by-step easy and quick tutorial videos (basic videos are FREE!) on my website www.MBAbullshit.com. *Please see Disclaimer, Terms and Conditions on the last page. Hey wadup! What do they TRY to teach you in business school but HARDLY explain well? Whenever we read our textbooks in business school, we often get very confused about all these different concepts which look scary and complicated. More often than not, these scary concepts are found in the fields of Accounting, Financial Management, and Quantitative Analysis. Here you will learn to lose that fear, and realize that the “scaryness” was only in the way it was presented to you in the past; and that there’s really nothing to be afraid of! David 2 Beat The Bullshit After you understand these concepts, you'll be surprised at how much easier the calculation part will become, whether you learn it from your professor or from my many FREE and easy tutorial videos on MBAbullshit.com. 3 Beat The Bullshit My Promise I promise that this book will explain more about concepts,...
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...with an interest rate of 16% and 2 semiannual periods compounding is $11,664.00. The future value of $10,000 with an interest rate of 16% and 4 quarterly periods compounding is $11,698.59. 3. Define an annuity. A series of equal cash flows made or received at regular time intervals. 4. Define an ordinary annuity. A series of payments made or received at the end of each period. 5. Define an annuity due. An annuity with n payments, where the first payment is made at time t = 0, and the last payment is made at time t = n - 1. 6. In the future value annuity table at any interest rate for 1 year, why is the future value interest factor of this annuity equal to 1.00? In a future value annuity table at any interest rate for 1 year, the future value interest factor of the annuity is equal to 1.00 because no interest has been acquired. 7. What is the relationship between the present value of single dollar payment formula and the present value of an ordinary annuity formula for the same number of years and same discount rate? Assume a discount rate of 10% and n value of 5 periods. (Be sure to support your explanation with an example.) The...
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...$1000 each, starting 3 years from now. What is the present value if the discount rate is 10%? 2) If the discount rate is 8% per year, what is the present value of $1500 received every third year forever (the first payment occurs three years from now)? 3) A perpetuity makes payments of $500 every second year, with the first payment coming one year from today. If the discount rate is 5%, what is the present value of the perpetuity? 4) You are the pension manager of a large firm. In 25 years an employee will retire and you must start making yearly pension payments to him of $27,000 (the first payment occurs immediately upon retirement, i.e. exactly 25 years from now). You want to make yearly contributions into the pension fund over the next 24 years so that you will have enough to cover this obligation. What is the yearly contribution needed if the annual interest rate is 6% and the employee is expected to live long enough to get 21 payments in total? 5) You get weekly cheques of $50 from a part time job. If the interest rate is 12% compounded daily: a) What is the present value of one year’s salary (52 cheques)? b) If you deposit each cheque in the bank, how much will you have after one year? c) If you deposit each cheque in the bank, but quit your job after one year (and leave all the accumulated money in the bank), how much will you have in the bank after two years? 6) Bill wants to have $50,000 in 10 years in order to buy a new boat. In each of the 20 years after that he will need...
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...of 10% per year, how much will you have 20 years from now, assuming no withdrawals in the interim? Solution: FV PV(1000,10%,20) = 6727.5 $6,727.50 2. If you invest $100 every year for the next 20 years, starting one year from today and you earn interest of 10% per year, how much will you have at the end of the 20 years? How much must you invest each year if you want to have $50,000 at the end of the 20 years? Solution: FV PMT (100, 10%,20) = 5727.50 after 20 years you will have $5,727.50 PMT FV (50000,10%,20) = 872.98 ou must invest, at the end of each year for 20 years, $872.98 3. What is the present value of the following cash flows at an interest rate of 10% per year? . $100 received five years from now. b. $100 received 60 years from now. c. $100 received each year beginning one year from now and ending 10 years from now. d. $100 received each year for 10 years beginning now. e. $100 each year beginning one year from now and continuing forever. Solution: a. PV FV(100, 10%, 5) = $62.09 b. PV FV(100, 10%,60) = $0.33 c. PV PMT(100,10%, 10) = $614.46 d. PV PMT(100,10%, 9) + 100 = 675.90 e. PV PMT(100,10%, Infiniti symbal) = $1000 4. You want to establish a “wasting” fund that will provide you with $1000 per year for four years, at which time the fund will be exhausted. How much must you put in the fund now if you can earn 10% interest per year? Solution: FV PMT (1000, 10%,4) = 3169.87 You need to start with $3,169.87. 5. You take a...
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... 2) The ratio of a country's exports to its GDP must: 2) _______ A) be larger than the ratio of imports to GDP. B) be less than one. C) be greater than one. D) equal the ratio of imports to GDP. E) none of the above 3) Year-to-year movements in real exchange rates between industrialized countries like the U.S. and Canada are caused mostly by: 3) _______ A) changes in capital controls. B) changes in quotas or tariffs. C) changes in nominal exchange rates. D) changes in relative growth rates of output. E) changes in relative rates of inflation. 4) For this question, assume the interest parity conditions holds. Also assume that the domestic interest rate is 10% and that the foreign interest rate is 7%. Given this information, we would expect that: 4) _______ A) the domestic currency is expected to appreciate by 3%. B) individuals will only hold domestic bonds. C) individuals will only hold foreign bonds. D) the domestic currency is expected to depreciate by 3%. 5) Suppose the domestic interest rate is 3% and that the foreign interest rate is 6%. And finally, assume that the domestic currency is expected to appreciate by 4% during...
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...deciding whether or not to buy a street drug called Bearoin. A researcher observes these consumers’ purchases over two years, 1 and 2. The price of Bearoin changes from year 1 to year 2, as a result of an increased number of sellers in the market. The researcher observes the following prices of the drug, and quantities sold, in year 1 and year 2: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 400 1. (5 points) Write down the formula for arc price elasticity of demand in terms of P1, Q1, P2, and Q2. 2. (10 points) What is the arc price elasticity of demand for Beroin? 3. (10 points) Now consider a second, new population of consumers buying the same drug in another location. In this new market: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 240 The year 2 price of the drug for consumers is P2 = $20. The year 2 quantity consumed at that price is Q2 = 1000 What is the arc price elasticity of demand for consumers in this second market? 4. (10 points) Now, there is a music festival where both of these populations come together and form one population. They have the same demand for Bearoin at the prices listed above in each market. What is the arc elasticity of demand for this combined population of consumers? 5. (10 points) The researcher now wants to use the arc elasticity computed for this combined population to determine what the quantity sold of the...
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...deciding whether or not to buy a street drug called Bearoin. A researcher observes these consumers’ purchases over two years, 1 and 2. The price of Bearoin changes from year 1 to year 2, as a result of an increased number of sellers in the market. The researcher observes the following prices of the drug, and quantities sold, in year 1 and year 2: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 400 1. (5 points) Write down the formula for arc price elasticity of demand in terms of P1, Q1, P2, and Q2. 2. (10 points) What is the arc price elasticity of demand for Beroin? 3. (10 points) Now consider a second, new population of consumers buying the same drug in another location. In this new market: The year 1 price of the drug for consumers is P1 = $80. The year 1 quantity consumed at that price is Q1 = 240 The year 2 price of the drug for consumers is P2 = $20. The year 2 quantity consumed at that price is Q2 = 1000 What is the arc price elasticity of demand for consumers in this second market? 4. (10 points) Now, there is a music festival where both of these populations come together and form one population. They have the same demand for Bearoin at the prices listed above in each market. What is the arc elasticity of demand for this combined population of consumers? 5. (10 points) The researcher now wants to use the arc elasticity computed for this combined population to determine what the quantity sold of the...
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...Interest 2.1 What is Interest? 2.2 Three Variables of Interest 1. Principal 2. Interest Rate 3. Time 2.3 Why is Interest Charged? 3. Simple Interest 3.1 What is Simple Interest? 3.2 Simple Interest Formula 4. Compound Interest 4.1 What is Compound Interest? 4.2 Compound Interest Formula 5. Compound Interest Tables 1. Future Value of $1 2. Present Value of $1 3. Present Value of an Ordinary Annuity of $1 4. Present Value of an Annuity due 5. Present Value of a Deferred Annuity 6. Conclusion 7. References Abstract The time value of money (TVM) is based on the principle that "a dollar today is worth more than a dollar in the future, (Mott, 2010, pp.31). Waiting for future dollars involves a cost -the cost is foregoing the opportunity to earn a rate of return on money while you are waiting" (pp.31). TVM was developed by Leonard Fibonnacci in 1202 and is one of the basic concepts of finance. One hundred dollars today has a different buying power than it will have in the future. For example, $100 invested in a savings account at your local bank yielding 6% annually will grow to $106 in one year. The difference between the $100 invested now-the present value of the investment-and its $106 future value represents the time value of money, (Spiceland, Sepe, Nelson, pp. 322). Time Value of Money: Simple Interest versus Compound Interest The time value of money is an accounting concept used for making decisions about Notes...
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