Table 1: Survival probability Year Probability of surviving from start of year to end of year

Year 1 - 0.75

Year 2 . - 0.58

Year 3 - 0.37

Year 4 - 0.23

Year 5 - 0 e.

Jackson will use $50,000 from the total sale proceed of instruments as a single premium to purchase an annuity today. This annuity pays X at the end of each year while Jackson is alive. The estimated probability of Jackson surviving for the next 5 years is stated in table 1. The yield rate is assumed to be j1 = 3.2% p.a. Calculate X value. Round your answers to three decimal places. Draw a detailed contingent cash flow diagram for instrument D, from the perspective of Jackson

NJ is an 11-year-old boy with a 5-year history of ADHD and a 7-year history of asthma. He also experiences perennial allergic rhinitis. NJ’s mother is bringing him into your office due to an exacerbation of this allergy. The symptoms he presents with include increased cough and runny nose and sneezing. He has no other medical history.

The following is his current list of medication:

            Concerta: 36 mg every morning

            Albuterol inhaler: 2 puffs as needed (uses one or two times a day)

            Singulair: 5 mg PO daily

            Zyrtec: 5mg PO daily

1. List specific goals of treatment for NJ.
2. What drug would be appropriate for NJ? Why?
3. What are the parameters for monitoring success of the therapy?
4. Discuss specific patient education based on the prescribed therapy.
5. List one or two adverse reactions for the selected agent that would cause you to change therapy.
6. What would be the choice for the second-line therapy for treating NJ?
7. What over-the-counter or alternative medications would be appropriate for NJ?
8. What dietary and lifestyle changes should be recommended for NJ?
9. Write your prescription for this patient.
10. Write your prescription for this patient.

Suppose that your salary is $35,000 in year one, will increase 6% per year through year 4, and is expressed in actual dollars as follows:

If the general price inflation is expected to average 8% per year for the first two years and 7% per year for the last two years.

A. What is the real dollar equvalent of these actual dollar salary amounts? Assume that base period is year one.

B. If your personal MARR is 10% per year, calculate the real interest rate?

(In millions), my 1st year OCF = .5107, 2nd year = .6740, 3rd year = .811, 4th year = .795, and 5th year = .632. In the 4th year I will donate $400,000 (.4) to charity and in the 5th year I will donate $200,000 (.2).    My initial investment was $500,000 (.5). I will issue 1 personal bond with coupon rate of 5.74% and five years until maturity. Bond price on issue date is $978.50. The personal bond has a maturity value of $100,000. I also will issue 1 share with a dividend in one year of $5.29. Expected growth is 4.9% per year. They are willing to pay $68.36 per share of equity. Using the financial calculator, calculate NPV. Compute and Draw the NPV-IRR profile.

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Required:

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $2,300,000 of five-year, 7% callable bonds dated July 1, Year 1, at a market (effective) rate of 9%, receiving cash of $2,118,007. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $18,200 is combined with the semiannual interest payment. Dec. 31. Closed the interest expense account. Year 2 June 30. Paid the semiannual interest on the bonds. The bond discount amortization of $18,200 is combined with the semiannual interest payment. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $18,200 is combined with the semiannual interest payment. Dec. 31. Closed the interest expense account. Year 3 June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $109,195 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) Required: 1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank or enter "0". When required, round your answers to the nearest dollar. Date Account Debit Credit Year 1 July 1 Cash 0 Discount on bonds payable 0 0 Bonds payable 0 0 Dec. 31-Bond Interest expense 0 0 Discount on bonds payable 0 0 Cash 0 0 Dec. 31-Closing Income summary 0 Interest expense 0 Year 2 June 30 Interest expense 0 0 Discount on bonds payable 0 0 Cash 0 0 Dec. 31-Bond Interest expense 0 0 Discount on bonds payable 0 0 Cash 0 0 Dec. 31-Closing Income summary 0 Interest expense 0 Year 3 June 30 Bonds payable 0 0 Loss on redemption of bonds 0 0 Discount on bonds payable 0 0 Cash 0 0 2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2. a. Year 1 $ b. Year 2 $ 3. Determine the carrying amount of the bonds as of December 31, Year 2. $ Check My Work

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Required:

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Required:

Chart of Accounts

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Required:

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.

3. Determine the carrying amount of the bonds as of December 31, Year 2.

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Year 1

July 1 Issued $71,100,000 of 20-year, 12% callable bonds dated July 1, Year 1, at a market (effective) rate of 14%, receiving cash of $61,621,133. Interest is payable semiannually on December 31 and June 30.

Oct. 1 Borrowed $250,000 by issuing a six-year, 5% installment note to Nicks Bank. The note requires annual payments of $49,254, with the first payment occurring on September 30, Year 2.

Dec. 31 Accrued $3,125 of interest on the installment note. The interest is payable on the date of the next installment note payment.

31 Paid the semiannual interest on the bonds. The bond discount amortization of $236,972 is combined with the semiannual interest payment.

Year 2

June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $236,972 is combined with the semiannual interest payment.

Sept. 30 Paid the annual payment on the note, which consisted of interest of $12,500 and principal of $36,754. Dec. 31

Accrued $2,666 of interest on the installment note. The interest is payable on the date of the next installment note payment.

31 Paid the semiannual interest on the bonds. The bond discount amortization of $236,972 is combined with the semiannual interest payment.

Year 3

June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $8,530,979 after payment of interest and amortization of discount have been recorded. Record the redemption only.

Sept. 30 Paid the second annual payment on the note, which consisted of interest of $10,662 and principal of $38,592.

Required:

1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.

3. Determine the carrying amount of the bonds as of December 31, Year 2.