# Register now to access 7 million high quality study materials (What's Course Hero?) Course Hero is the premier provider of high quality online educational resources. With millions of study documents, online tutors, digital flashcards and free courseware, Course Hero is helping students learn more efficiently and effectively. Whether you're interested in exploring new subjects or mastering key topics for your next exam, Course Hero has the tools you need to achieve your goals.

3 Pages

### EXAM 3 INVESTING practice problems

Course: HACE 3200, Spring 2011
School: UGA
Rating:

Word Count: 363

#### Document Preview

3 INVESTING EXAM PRACTICE PROBLEMS Question 1 If you want to have \$2.3 million dollars (\$2,300,000) in your investment account in 30 years and you can earn an annual rate of return on your investments of 9.5%, how much do you need to invest annually to have \$2.3 million dollars in 30 years? Question 2 Calculate the rate of return on a share of stock, if the stock rose from \$120 per share to \$285 per share over 1...

Register Now

#### Unformatted Document Excerpt

Coursehero >> Georgia >> UGA >> HACE 3200

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
3 INVESTING EXAM PRACTICE PROBLEMS Question 1 If you want to have \$2.3 million dollars (\$2,300,000) in your investment account in 30 years and you can earn an annual rate of return on your investments of 9.5%, how much do you need to invest annually to have \$2.3 million dollars in 30 years? Question 2 Calculate the rate of return on a share of stock, if the stock rose from \$120 per share to \$285 per share over 1 year, while paying \$100 in dividends during the year. Question 3 If you want to have \$5.5 million dollars \$5,500,000 in your investment account in 30 years and you can get an annual rate of return of 12%, how much do you need to invest each year, beginning today, to have \$5.5 million in your investment account in the future? Question 4 Calculate the annualized rate of return on a share of stock purchased for \$52 and sold for \$109 after 13 years. Dividends paid during each year were \$3 per share. Question 5 Calculate the rate of return on a share of stock purchased in 2004 for \$25, and sold in 2006 for \$45. During the year the stock paid \$40 in dividends. Question 6 If you can invest \$13,500 each in year an investment portfolio that generates an annual rate of return of 10.7%, how much will you have in your account at the end of 25 years? Question 7 Tyler and Jasmine are taking out life insurance on Jasmine. They have 1 small child. Jasmine earns \$85,000 per year. They believe they need this coverage for the next 18 years. How much life insurance should they take out on Jasmine? Tyler believes he can get a rate of return of 8.75% on the life insurance settlement. Question 8 If you continually invest \$41,200 per year in a stock that generates an annual rate of return of 14%, how much will your stock be worth in 15 years? Question 9 Calculate the annualized rate of return on 100 shares of stock purchased for \$93 per share and sold at a loss at \$44 per share 7 years later. During those 7 years the stock generated dividends of \$2 per share each year. Question 10 If Sally wants to have 3 million dollars in her retirement account when she retires in 35 years, how much does she need to contribute to her retirement account each year assuming her retirement account generates a 9% annual rate of return?
Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

UGA - HACE - 3200
HACE 3200 EXAM 3MORE INVESTING PRACTICE PROBLEMSIf you want to have \$3.2 million dollars in your stock portfolio in 25 years and you canearn an annual rate of return on your investments of 8.2%, how much do you need toinvest annually to have \$3.2 mill
UGA - HACE - 3200
Finals practice problems. You should end up with the answer that is given.April wants to have 1.75 Million dollars in her retirement account in 45 years. If she gets anannual rate of return of 7.75% on her investment. How much does she need to save each
UGA - HACE - 3200
MUTUAL FUNDS PRACTICE PROBLEMS1. Calculate the Net Asset Value of the following Mutual Fund: holdings = \$550million; liabilities = \$35 million; 15 million shares outstanding.2. Calculate the Net Asset Value of the following Mutual Fund: holdings = \$845
UGA - HACE - 3200
UNIVERSITY OF GEORGIAHOUSING AND CONSUMER ECONOMICS3200 FAMILY FINANCIAL MANAGEMENTMAYMESTER 2010MAY 11-JUNE 2Class Time: MTWRF 9:30 AM-12:15 PMLocation: 430 CHEMISTRYINSTRUCTOR:Diann Moorman, Ph.D.Office: 209 Dawson HallPhone: 706.542.5661E-ma
UGA - HACE - 3200
1. The average cost of a wedding is \$20,000 today. What will the cost of a wedding be in 5years if prices increase at a rate of 4% due to inflation.2. Today Sally has \$20,000 in savings for her wedding which is 5 years away. She has it inan account ear
UGA - HACE - 3200
TVM PRACTICE PROBLEMS1. You received a \$3,000 academic award this year. You placed it in a savingsaccount paying 8% annual interest. Inflation is running at an annual rate of4.17%. Controlling for inflation, How much will your account be worth in 5yea
UGA - HACE - 3200
Time Value of Money SINGLE PAYMENT1. What is the future value of \$500 if it is invested in an account for 30 years and earns anAnnual Percentage Rate of 15% compounded annually2. What is the future value of \$500 if it is invested in an account for 30 y
UGA - HACE - 3200
Time value of moneyannuities1. You anticipate that you will need \$10,000 to travel to Spain in 8 years. However,inflation will make your trip cost more. Inflation is currently running at 1.88%.Controlling for inflation, how much must you deposit each y
UGA - STAT - 4260
UGA - STAT - 4260
UGA - STAT - 4260
Scheaffer,Mendenhall,OttExercises4.14p=yin B = 2=25 5= = 0.83 30 6pq N n (5 / 6)(1 / 6) 300 30 =2 =.131 N 300 n 1294.15B=.05D=B2/4=(.05)2/4=.000625FromEquation(4.19),wehaven=Npq300 (5 / 6) (1 / 6)== 127.90 128 ( N 1) D + pq 299
UGA - STAT - 4260
UGA - STAT - 4260
UGA - STAT - 4260
UGA - STAT - 4260
STAT 4/6240, Fall 2010HW3, will not be collectedI have attached scanned pages from the book by Scheaer et al. I have marked a few problems inthese scanned pages.1. Problem 3.16, Scheaer et al. This problem is related to my comments in the rst paragrap
UGA - STAT - 4260
UGA - STAT - 4260
UGA - STAT - 4260
UGA - STAT - 4260
UGA - STAT - 4260
UGA - STAT - 4260
Tree123456789101112averageVarianceBasal ar0.30.50.40.90.70.20.60.50.80.40.80.6Volume6971915512920918130.5611.83yi-r*xi-0.36-1.6-1.48-0.070.160.76-0.72-1.63.040.521.040.28tau-ytau-xMu-xrNnVar(ta
UGA - STAT - 4260
UGA - STAT - 4260
Simple Random Sampling (continued)Scheaer et al. in Chapter 4 of their book considered the following case study as partof application of simple random sampling. To nd out if Americans are consuming lessalcohol, a Gallup poll of approximately 1200 Ameri
UGA - STAT - 4260
UGA - STAT - 4260
Simple Random Sampling (continued)Scheaer et al. in Chapter 4 of their book considered the following case study as partof application of simple random sampling. To nd out if Americans are consuming lessalcohol, a Gallup poll of approximately 1200 Ameri
UGA - STAT - 4260
Austin WenSTAT 4260Final Project First DraftI.IntroductionThe original objective of this project is to estimate the mean batting average of all theMajor League Baseball players in the 2010 season. However, not everyone had the sameopportunity to ba
UGA - STAT - 4260
Player1 I Suzuki2 D Jeter3 M Young4 J Pierre5 M Scutaro6 N Markakis7 D Span8 R Cano9 A Jackson10 H Kendrick11 M Cuddyer12 C Figgins13 M Teixeira14 C Crawford15 B Butler16 V Guerrero17 J Lopez18 V Wells19 A Beltre20 E Andrus21 A Ramire
UGA - STAT - 4260
Austin WenSTAT 4260HW 2Due September-03-20101.Exercise 1 page.61a. yU=98+102+154+133+190+1756=142b. Let y be the mean of the sample values.c.(Plan 1)d. Same. Samplf. P(g. Samplee, SS)pleNumeamben (x )ri. 1j. 98,k. 1/l. 147.154,
UGA - STAT - 4260
Austin WenSTAT 4260 HW6October 4th, 2010
UGA - STAT - 4260
Austin WenSAT 4240 HW86.1 A forester is interested in estimating the total volume of trees in a timber sale. Herecords the volume for each tree in a simple random sample. In addition, he measures thebasal area for each tree marked for sale. He then us
UGA - STAT - 4260
Player1 I Suzuki2 D Jeter3 M Young4 J Pierre5 M Scutaro6 N Markakis7 D Span8 R Cano9 A Jackson10 H Kendrick11 M Cuddyer12 C Figgins13 M Teixeira14 C Crawford15 B Butler16 V Guerrero17 J Lopez18 V Wells19 A Beltre20 E Andrus21 A Ramire
UGA - STAT - 4260
Austin WenSTAT4260 HW97.1 Suppose that a home mortgage company has N mortgages numbered serially in theorder that they were granted over a period of 20 years. There is a generally increasing trend inthe unpaid balances because of the rising cost of ho
UGA - STAT - 4260
Group1234567891012345678910111213141516171819202122232425262728293031323334353637383940variancePorportionofpastdueaccounts0.7510.750.750.250000.250.250.14Group1234512345678910
UGA - STAT - 4260
Stratied Random SamplingScheaer et al. in Chapter 5 of their book considered the following case study as anapplication of stratied sampling. An important problem of national concern involvesthe estimation of the health care cost. These costs are studie
UGA - STAT - 4260
UGA - FINA - 4000
Chapter OneRole of the Financial SystemI.Role of the Financial System1. Purpose of financial system is to facilitate the movement of money from whoever has theexcess at the moment to whoever needs more than they currently have, so it can be spent.2.
UGA - FINA - 4000
Chapter 2The Federal Reserve and Its PowersI.Origins of the Federal Reserve SystemA central bank regulates a nations money supply and financial institutions in anattempt to provide the nation with a stable economic environment and an effectivepaymen
UGA - FINA - 4000
Chapter 3The Fed and Interest RatesFederal Reserve Control of the Money SupplyI.1. Measures of the Money SupplyA. M1 = Currency + Checking Deposits. (Focuses on money as a medium of exchange)B. M2 = M1 + Saving Deposits, Money Market Deposit, Overni
UGA - FINA - 4000
CourseFINA 4000Money and Capital MarketsProfessor Ralph E. SteuerTerry College of BusinessFall 20108/17/16Copyright 2006 John Wiley &amp; Sons, Inc.111Financial SystemPurpose of financial system is to facilitate the movement of money from whomever
UGA - FINA - 4000
Purposes of a Central Bank8/279/10Supervise a nations money supply and paymentssystem.Act as the chief regulator of the nations financialinstitutions, especially depository institutions.Be lender of last resort when financial system hasliquidity p
UGA - FINA - 4000
Money Supply MeasuresMonetary Base = Federal Reserve notes outstanding +depository institution balances at theFedTwo money supply measures are(CDs)money aggregatesMonetary base and money supply are not same thing(definitions are different).Copyri
UGA - FINA - 4000
Example 1Normally, when we lend money, we do it to increasepurchasing power. Lets try to be precise about takinginflation into account.We lend \$100 for one year under the condition thatthe \$100 gains 5% in purchasing power. Expectedinflation is 8%.
UGA - FINA - 4000
Opportunity CostValue forgone for something else.Suppose a bank would pay 3.5%/year but you decideto keep \$10,000 in your mattress.\$350/yrIt is the best of what could be earning elsewhere, butare not.10/90/6Copyright 2006 John Wiley &amp; Sons, Inc.
UGA - FINA - 4000
DefinitionsTermand the term interest rates: relationshiptoyield structure of to maturitylength of time(typicallyTreasuries) that differ only in on securities betweenmaturity.Yield curve: graphical portrayal of the termstructure.Copyright 2006 John
UGA - FINA - 4000
Example 1: Versatility of Annuity Formula15-year \$160,000 mortgage at 4%. What is monthlypayment?Copyright 2006 John Wiley &amp; Sons, Inc.11/511Term Structure FormulaAssumes a bonds yield is geometric mean of futureperiod rates( 1 + 0 Rn ) = ( 1 + 0
UGA - FINA - 4000
Definitions11/16/6/11Open market. No established customer relationships.Impersonal, competitive.Wholesale (min \$1 million but usually much more)Liquidity often refers to the ability to sell when youwant to. In this chapter, liquidity can be thought
UGA - FINA - 4000
Treasury Inflation-Protected SecuritiesTIPS first issued in 1997.Issued increments of 10 and 20 years about 3 times/yearin par in terms of 5, \$100.Usual noncompetitive/competitive auction process.Coupon rate determined at auction, fixed thereafter.P
UGA - FINA - 4000
Banking Industry6/6/11Number of banks ~8,000 decreasing (result ofconsolidation, deregulation and failures), but numberof branches ~75,000 increasing (result of relaxedgeographical restrictions)About 4,000 are small banks (&lt; \$100 million in assets)
UGA - FINA - 4000
Chapter 4 Recommended End-of-Chapter Problems and Solutions1.What factors determine the real rate of interest?The real rate of interest is determined by: (a) individual time preference for consumption, and (b)the return that firms expect to earn on th
UGA - FINA - 4000
Chapter 5a Recommended End-of-Chapter Problems and Solutions1. Brennan Alston deposits \$2000 in a savings account offering 6.25% compounded daily. After 4years, assuming he makes no further deposits, what will be the balance in his account?The question
UGA - FINA - 4000
UGA - FINA - 4000
Chapter 5c Recommended End-of-Chapter Problems and Solutions9.Calculate the duration of a \$1,000 4-year bond with an 8% coupon (annualpayments) that is currently selling at par. Assume the length of each discount period is 1 year.The following grid is
UGA - STAT - 3000
Chapter One Solutions1Chapter One Solutions2Chapter One Solutions3Chapter One Solutions4Chapter One Solutions5Chapter One Solutions6Chapter One Solutions7Chapter One Solutions8Chapter One Solutions9Chapter One Solutions10Chapter One So
UGA - STAT - 3000
Chapter Two Solutions1Chapter Two Solutions2Chapter Two Solutions3Chapter Two Solutions4Chapter Two Solutions5Chapter Two Solutions6Chapter Two Solutions7Chapter Two Solutions8Chapter Two Solutions9Chapter Two Solutions10
UGA - STAT - 3000
Chapter Three Solutions1Chapter Three Solutions2Chapter Three Solutions3Chapter Three Solutions4Chapter Three Solutions5Chapter Three Solutions6Chapter Three Solutions7Chapter Three Solutions8Chapter Three Solutions9Chapter Three Solutio
UGA - STAT - 3000
Chapter Four Solutions1Chapter Four Solutions2Chapter Four Solutions3Chapter Four Solutions4Chapter Four Solutions5Chapter Four Solutions6Chapter Four Solutions7Chapter Four Solutions8Chapter Four Solutions9
UGA - STAT - 3000
Chapter Five Solutions1Chapter Five Solutions2Chapter Five Solutions3Chapter Five Solutions4Chapter Five Solutions5Chapter Five Solutions6Chapter Five Solutions7Chapter Five Solutions8Chapter Five Solutions9Chapter Five Solutions10Chap
UGA - STAT - 3000
Chapter Six Solutions1Chapter Six Solutions2Chapter Six Solutions3Chapter Six Solutions4Chapter Six Solutions5Chapter Six Solutions6Chapter Six Solutions7Chapter Six Solutions8Chapter Six Solutions9Chapter Six Solutions10Chapter Six So
UGA - STAT - 3000
Chapter Seven Solutions1Chapter Seven Solutions2Chapter Seven Solutions3Chapter Seven Solutions4Chapter Seven Solutions5Chapter Seven Solutions6Chapter Seven Solutions7Chapter Seven Solutions8Chapter Seven Solutions9Chapter Seven Solutio
UGA - STAT - 3000
Chapter Eight Solutions1Chapter Eight Solutions2Chapter Eight Solutions3Chapter Eight Solutions4Chapter Eight Solutions5Chapter Eight Solutions6Chapter Eight Solutions7Chapter Eight Solutions8Chapter Eight Solutions9Chapter Eight Solutio
UGA - STAT - 3000
Chapter Nine Solutions1Chapter Nine Solutions2Chapter Nine Solutions3Chapter Nine Solutions4Chapter Nine Solutions5