Problem 1: A firm's balance sheet shows current assets of $95, net fixed assets of $250, long term debt of $40, and owners equity of $200. What is the value of the firm's current liabilities if that is the only remaining balance sheet item?
Problem 2: What is the present value of your trust fund if it promises to pay you $50,000 on your 40th birthday (7 years from today) and earns 10% compounded annually (rounded down to the nearest 100th dollar)?
Problem 3: How much can be accumulated for retirement if $2,000 is deposited annually, beginning one year from today, and the account earns 9% interest compounded annually for 40 years (rounded up to the nearest 100th dollar)?
Problem 4: Find the interest rate implied by the following combinations of present and future values:
PV = $900; FV = $1,680; time period = 4 years (rounded to the nearest whole percent)