Test Essay

742 Words Jun 8th, 2014 3 Pages
After careful consideration and analysis of this case, I have determined that there is a way for the Craddock Cup to generate enough money annually for the Craddock Youth Soccer League to reach their field-acquisition goal. The first step would be to revise the overhead-expense allocations. Because Rivaldo is employed by CYSL full-time with a fixed salary, it would be benefitial for the tournament if none of it is allocated to the Craddock Cup. This is also true for the Rent and utilities. The league will be renting 10 soccer fields from the city for 40 weeks regardless of whether or not the tournament occurs so there none of those expenses need to be allocated to the Craddock Cup. 100% of Renee Jansten’s salary will …show more content…
What is the present value of this annuity if Moe’s interest rate is 9% compounded annually? A) 16,430.30 B) 13,558.23 C) 15,987.86 D) 12,897.67 E) 17,987.89 3- You want to buy a car, and a local bank will lend you $30,000. The loan would be fully amortized over 5 years (60 months) and the nominal interest rate would be 12% with interest paid monthly. What would be the monthly loan payment? Assume payments start next period A) 430.89 B) 520.89 C) 667.33 D) 444.89 E) 430.89 4- Your sister turned 30 today and she is planning to save $4000 per year for retirement with the first deposit to be made one year from today (her last deposit will be made at age 60). She will invest in a mutual fund, which she expects to provide a return of 10% per year. She plans to retire 30 years from today, when she turns 60, and she expects to live for 30 years after retirement, to age 90. Under these assumptions, how much can she spend in each year after she retires? Her first withdrawal will be made at the end of her first retirement year (she will also make her last withdrawal at age 90). A) 67,900 B) 65,779 C) 72,500

D) 75,689 E) 69,798 5- Karen and Keith have a $500,000, 30 year (360 month) mortgage. The mortgage has 7.2% nominal annual interest rate.

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