Question

please solve all the problems

Problem 1 On week one, a business spent $3000, and received $500 cash. On week two, the business spent $400, a customer paid $1000 on credit, so no cash will be received until week five. On week three, the business spent $400, and received $950 cash. On week four, the business spent $500, and received $1,100 cash. On week five, the business spent $500, received $1,100 cash, and also received the cash from the customer on week two. A. Draw a cashflow diagram for the business from week one to week 5. B. What is the cash flow for each week? C. What is the net cash flow after week five? Problem 2 Determine the future worth of $100,000 in four years if the money is invested in a US Bond that gains interest at 3%, compounded annually. Problem 3 You have student loans totaling $112,000 after completing your Master's degree in Mechanical Engineering at Virginia Tech. These loans come with an interest rate of 5.81% per year compounded weekly. What is the effective annual rate? Problem 4 In your first year as a practicing engineer, you buy yourself a brand new Toyota Tacoma TRD Pro, by putting down a deposit of $25,000 and taking out the rest of the $46,665 starting cost from a 5 year car loan with an interest rate of 6.98% per year compounded monthly. What is the effective annual rate? How much interest do you pay on the first payment.

Answer 1

Due to presence of HOMEWORKLIB POLICY, I am answering 2 questions.

Problem 2.

Ans: Future worth is given as:

$FV=100000(1.03)^{4}=112550.881$

Problem 3.

Ans: Effective annual rate is given as:

$R=(1+\frac{0.0581}{52})^{52}-1=0.0598$

or 5.98%.

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