BU111 Spring 2012 - Supplementary Questions

# You are saving up to buy a brand new 150000 jaguar

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Unformatted text preview: ur bank account, which pays annual interest of 7%, compounded monthly. You are saving up to buy a brand new \$150,000 Jaguar convertible. In how many years will you have enough money to buy the car? Problem 18 Suzanne has identified a project with the following cash flows: Year Cash Flow 1 -\$4,000 2 \$250 3 \$1,600 4 \$5,000 Calculate the present value of the cash flows if the discount rate is 8%. Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com Students Offering Support: Wilfrid Laurier University Problem 19 When you graduate, you plan on spending a year as a groupie for the band Nickleback. You estimate the costs of touring with the band to be \$2,000 per month. In order to live out your dream, you decide to make weekly deposits into your savings account. The account earns 4% interest, compounded semi-annually. You have 2 years exactly until your graduate. How much will you have to save on a weekly basis in order to have enough to become a groupie? Raising Marks. Raising Money. Raising Roofs. www.schoolsos.com Students Offering Support: Wilfrid Laurier University Solu...
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