Questions from Personal Finance


Q: A service contract for a video projection system costs $80 a

A service contract for a video projection system costs $80 a year. You expect to use the system for six years. Instead of buying the service contract, what would be the future value of these annual am...

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Q: A work-at-home opportunity is available in which you

A work-at-home opportunity is available in which you will receive 3 percent of the sales for customers you refer to the company. The cost of your “franchise fee” is $600. How much would your customers...

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Q: What would be the net present value of a microwave oven that

What would be the net present value of a microwave oven that costs $159 and will save you $68 a year in time and food away from home? Assume an average return on your savings of 4 percent for five yea...

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Q: If a person saves $62 a month by using coupons and

If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount for a year?(b) What would be the future value of this annual amount over 10 years, assuming an inte...

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Q: Based on the following data, prepare a financial comparison of buying

Based on the following data, prepare a financial comparison of buying and leasing a motor vehicle with a $24,000 cash price: What other factors should a person consider when choosing between buying or...

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Q: Based on the data provided here, calculate the items requested:

Based on the data provided here, calculate the items requested: b. the operating cost per mile.

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Q: Based on the following data, would you recommend buying or renting

Based on the following data, would you recommend buying or renting? Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent. Assume this individual has other tax deductions...

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Q: General Motors Corporations has a 1.34 beta. If the

General Motors Corporations has a 1.34 beta. If the overall stock market increases by 6 percent, based on this information, how much should investors assume that General Motors will increase?

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Q: In an attempt to have funds for a down payment in five

In an attempt to have funds for a down payment in five years, James Dupont plans to save $3,800 a year for the next five years. With an interest rate of 4 percent, what amount will James have availabl...

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Q: You estimate that you can save $3,450 by selling

You estimate that you can save $3,450 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 3 percent?

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