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20161107185449assignment_1.xlsx

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	Future Value from Slides we reviewed in class and extra support from CH 4 & 5 Textbook
	Marci invests $50,000 in an account earning 3% interest per year. How many $ will she have in his account in thirty years?
	We can assume Noah takes $0 out of his account during the thirty year period.
	To obtain partial points, you show your work.

	Present Value from slides we reviewed in class and extra support from CH 4 & 5 textbook readings
	MX INC. just settled a lawsuit. The company has agreed that they will pay $3 Million four years from now to the plaintiff company.
	MX INC. attorney tells Noah, MX INC. CFO, you are required to create an escrow account and place the necessary funds in the account today so
	the account has $3 Million in it four years from now. Marci asks you how many $ do we put in the account today if we earn can 3% per year
	on the money.
	To obtain partial points, you show your work.

	Interest Rate from slides we reviewed in class and extra support from CH 4 & 5 textbook readings.
	Falin has a brokerage account with Jase, a stockbroker. Falin placed $300,000 in the new brokerage account nine years ago. Falin has not
	taken any money out of the account and Falin has not added any money to the account over the past nine years. The account currently has
	a $915,000 balance. Falin asks Jase -- what annual compounded interest rate have I earned on my account?
	To obtain partial points, you show your work.

	Present Value Series of Cash Flows from slides we reviewed in class and extra support from CH 5 textbook readings.
	Diane, CFO of GLY INC., says we will receive the following cash flows from a patent lawsuit we won.
	Diane says she would like to generate immediate cash from this lawsuit. Diane has a found a finance company willing to buy these cash flows today.
	However, the finance company told Diane they require 18% annual return. So, Diane asks you -- how much will the finance company pay GLY INC.
	today for the series of cash flows listed below?
	To obtain partial points, you show your work.
	End Year	Cash Flow
	1	$400,000
	2	$500,000
	3	$600,000
	4	$800,000
	5	$800,000
	6	$1,600,000
	7	$5,000,000

	Future Value Series of Cash Flows from slides we reviewed in class and extra support from your CH 5 textbook readings.
	Diane, CFO of GLY INC., says we will receive the following cash flows from a patent lawsuit we won.
	Diane asks you: if we put these funds in an account paying 3% interest annually how much will the account be worth at the end
	of year 17.

	To obtain partial points, you show your work.
	Beginning of Year	Cash Flow
	1	$800,000
	2	$800,000
	3	$800,000
	4	$800,000
	5	$800,000
	6	$1,000,000
	7	$1,000,000
	8	$1,000,000
	9	$1,000,000
	10	$1,000,000
	11	$400,000
	12	$450,000
	13	$1,200,000
	14	$1,200,000
	15	$100,000
	16	$100,000
	17	$500,000

	Effective Interest Rate from slides called ER_APR_.pptx in message post right below this assignment. Also, you can view CH 5 textbook readings for additional support.
	What is the effective rate of interest on an account earning 9.5% annually compounded daily?
	To obtain partial points, you show your work.

	Annual Percentage Rate (APR) from slides called ER_APR_.pptx in message post right below this assignment. Also, you can view CH 5 textbook readings for additional support.
	VEND INC. just received terms for its new bank loan. The bank will lend VEND $600,000 at 6% annual interest rate. The bank says we will
	require a 1% fee of the $600,000 balance as cost of setting up the loan. The lender requires payment in one year of the principal and interest.
	Thus, VEND INC. pays the lender $636,000 in one year ($600,000 principal plus $36,000 interest).
	Vincent, the VEND INC. CFO, asks you what annual percentage rate (APR) are we paying on this loan?
	To obtain partial points, you show your work.