1. You are expecting to receive the following payments: $2,000 in year 4, $8,000 in year 8. What is the present value of the two payments today, if the interest rate is 5%?

2. Assume you wish to accumulate $100,000 in year 8. You plan to deposit $20,000 today in a bank that guarantees an interest rate of 12%. What additional amount will you have to put in year 5 to achieve this target?

3. You deposited $3,000 in a bank ten years ago. The balance on your account is currently showing $7,102.09. What interest rate did the bank pay on your deposit?

4. You deposit $5,000 in bank today . What is the future value of the sum in year 10 if the interest rate is 6% in years 1-5 and 8% in years 6-10?

an 89 year old woman is living with her 91 year old partner in a very remote rural area of NY. The woman, Laura, seems to be getting confused often and also is experiencing nocturia. Her driver’s license expired on her 87^th birthday and she did not renew it. Her partner’s eyesight has been diminishing rapidly due to glaucoma and he no longer feels comfortable driving. He also has trouble hearing and has to wear hearing aids to assist. One night, Laura is getting up to use the bathroom and she is very confused and ends up falling. Her partner calls 911 but is struggling to communicate bc he does not have his hearing aids on. Answer the following questions: A.) Explain all of the potential obstacles to care that you can see in this example for Laura. B.) Discuss some information or questions a provider might ask and history info that a provider might want to know. C.) You suspect she has a UTI, how could you confirm this?

A generator costs $150 and requires $80 in maintenance for each year of its 3 year life. After 3 years this generator will be replaced by a new one. The generator is straight-line depreciable to zero and has no salvage value. Assume a tax rate of 35 percent and a discount rate of 15 percent. What is the Operating Cash Flow (OCF) per year associated with the generator project?

A generator costs $150 and requires $80 in maintenance for each year of its 3 year life. After 3 years this generator will be replaced by a new one. The generator is straight-line depreciable to zero and has no salvage value. Assume a tax rate of 35 percent and a discount rate of 15 percent. What is the Equivalent Annual Cost (EAC) of the generator?

The federal government calculates its budget on a fiscal year that begins each year on October 1 and ends the following September 30. At the beginning of the 2003-2004 fiscal year, the Department of Finance forecast that the federal budget surplus for the fiscal year would be $4.0 billion. The actual budget surplus for the fiscal year was $9.1 billion. Federal expenditures were $1.7 billion less than the Department had forecast, and federal revenue was $1.5 billion more that the Department had forecast. The remainder of the surplus came from lower-than-forecast debt charges. a) Is it likely that the economy grew faster or more slowly during fiscal 2003-2004 than the Department of Finance had expected? Explain your reasoning. b) Suppose that the federal government was committed to balancing the budget each year. What actions of the government would have led to a balanced budget? And what will be the economic consequences? Explain. c) Does the surprise surplus during fiscal 2003-2004 provide any insight into difficulties that might arise in trying to balance the budget every year? Explain.

Use the following table to answer the next question. The base year is 2007.

Compared to the base year, the rate of inflation for the year 2007 is

A labor contract provides a first year (nominal) wage of $50,000 per year, and specifies that the real wage will increase by 4% each year. The CPI is 2.0 in the first year, 2.1 in the second year, and 2.15 in the third year.

Please enter your answers as numeric responses rounded to the nearest dollar (ie. 32,900 or $32,900 not 32,900.00 or "Thirty-two thousand nine hundred dollars").

What is the real wage for the first year of this contract?

What is the real wage for the second year of this contract?

What is the real wage for the third year of this contract?

What is the nominal wage for the second year of this contract?

What is the nominal wage for the third year of this contract?

Listed below is a company’s sales in Year 1 through Year 12 along with the national income of the country, where the business is set up.

a. Develop a scatter chart for the above data. What does this chart indicate about the relationship between the national income and the company's sales in Year 1 through Year 12?
b. Use the data to develop an estimated regression equation that could be used to estimate the company’s sales based on the national income. What is the estimated regression model?

Sunshine Company is a calendar year accrual-basis taxpayer and is in its first year of operations. Sunshine Company had the following income, expense, and loss items for the current year:

Furthermore, Sunshine’s liabilities (all recourse) increased from $0 on 1/1 to $300,000 on 12/31 of the current year.

1. Assume that Sunshine Company is owned by Alvin as a sole proprietorship. Alvin received $2,400 per month ($28,800 in total) from Sunshine Company as an owner’s draw. Additionally, Alvin took $55,000 out of Sunshine Company near the end of the year as a partial distribution of profits. (11 points)
   1. Calculate the net business income of Sunshine Company/Alvin that would be reported on Schedule C of Alvin’s Form 1040.
   2. How much of the $2,400 per month ($28,800 total) and the $55,000 distribution would Alvin include as taxable income on his Form 1040?
   3. What amount of Alvin’s income will be subject to self-employment tax?
   4. Note that you do not need to complete Schedule C or other forms, but these form will be a useful guide in completing this portion of the assignment.                       

What is the annual capital gains yield expected over the next year for a 12 year bond with 6.9% coupon rate paying the coupons every six months and selling at $1,045