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Chapter 17: Q 39. (page 427)
How much money do you have to put into a bank
account that pays 10% interest compounded annually to have $10,000 in ten years?
$3855.43
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Imagine that a local water company issued \(10,000
ten-year bond at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%.
a. Given the change in interest rates, would you
expect to pay more or less than \)10,000 for the
bond?
b. Calculate what you would actually be willing to
pay for this bond.
If you receive \(500 in simple interest on a loan that you made for \)10,000 for five years, what was the interest rate you charged?
What are the most common ways for start-up firms
to raise financial capital?
What is the total amount of interest from a $5,000 loan after three years with a simple interest rate of 6%?
The Darkroom Windowshade Company has
100,000 shares of stock are outstanding. The investors in the firm own the following numbers of shares: investor 1 has 20,000 shares; investor 2 has 18,000 shares; investor 3 has 15,000 shares; investor 4 has 10,000 shares; investor 5 has 7,000 shares, and investors 6 through 11 have 5,000 shares each. What is the minimum number of investors it would take to vote to change the company's top management? If investors 1 and 2 agree to vote together, can they be certain of always getting their way in how the company will be run?
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