You’re trying to save to buy a new $68,000 sports car. Currently, you have saved $36,840 which is invested at 4.9 percent annually compounded interest. How many years will it be before you purchase the car, assuming the price of the car remains constant?

Your credit card company charges you 1.40 percent per month. What is the EAR on your credit card?

A pro forma statement indicates that both sales and fixed assets are projected to increase by 7 percent over their current levels. Given this, you can safely assume the firm:

Caroline is going to receive a award of $20,000 six years from now. Jiexin is going to receive an award of $20,000 nine years from now. Which one of the following statements is correct if both individuals apply a discount rate of 7 percent?

All of the following issues represent problems encountered when comparing the financial statements of two separate entities except the issue of the companies:

Assume your goal is to have $2 million in your retirement account on the day you retire. To fund this goal, you will make one lump-sum deposit today. If you plan to retire ______ rather than ______ and you earn a ______ rate of interest, then you can deposit a smaller lump-sum today.

Paige wants to have $40,000 for a down payment on a house five years from now. She can either deposit one lump sum today or wait one year and deposit a lump sum then. Assume an interest rate of 3.5 percent, compounded annually. How much additional money must she deposit if she waits for one year rather than making the deposit today?

Minchey Motor Sport is currently operating at full capacity. Sales are expected to increase by 5 percent next year, which is the firm’s internal rate of growth. Net working capital and operating costs are expected to increase directly with sales. Interest expense will remain constant at its current level. The tax rate and the dividend payout ratio will be held constant. Current and projected net income is positive. Which one of the following statements is correct regarding the pro forma statement for next year?

A firm that opts to “go dark” in response to the Sarbanes-Oxley Act:

You have just leased a car that has monthly payments of $325 for the next 5 years with the first payment due today. If the APR is 5.88 percent compounded monthly, what is the value of the payments today?