At the end of each year for the first 5 years, Cecil and Norma DeMille plan to contribute $1,000 to their daughter Sally's college fund. For the next 5 years they will contribute $2,000 at the end of each year, and then increase that amount to $3,000 until she turns 18 and is ready for college. What amount will they have accumulated for Sally's college fund if the account pays 6.35% annually?

Please be very thorough with work and provide the specific formula used.

Miller's Hardware plans on saving $100, $150, and $350 at the end of each year for the next three years, respectively. How much will the firm save at the end of the 6th year if it can earn 4% on its savings? (4% is annual interest rate and assume annual compounding) [Please round your answer to the nearest whole number]

A municipal bond that matures in one year has a $5,000 face value and is currently priced at $4,650.00. Calculate the interest rate for this bond to two decimals.
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Part 2   (1 point)

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Suppose that inflation is exactly 1.00%. Calculate the real interest rate to two decimals.
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You are the CFO of Jordan company. The year-end of Jordan is 31 March. The CEO of Jordan company informed you that the company intends to open a new branch in the next few weeks. The company has spent a substantial sum on a series of television advertisements to promote this new branch. The company paid for advertisements costing JOD 1,500,000 before 31 March 2018. JOD 900,000 of this sum relates to advertisements shown before 31 March 2018 and JOD 350,000 to advertisements shown in April 2018. Since 31 March 2018, The company has paid for further advertisements costing JOD 250,000. A discussion between the CEO and the board of directors whether these costs should be written off as expenses in the year to 31 March 2018. The board of Directors doesn’t want to charge JOD 3 million. Required: Explain and justify the treatment of these costs of JOD 3 million in the financial statements for the year ended 31 March 2018 according to IAS 38 assuming that market research indicates that this new branch is likely to be highly successful.

Blossom Company began the year with 9 units of marine floats at a cost of $10 each. During the year, it made the following purchases: May 5, 24 unit at $16; July 16, 19 units at $20; and December 7, 24 units at $23. Assume there are 28 units on hand at the end of the period. Blossom uses the periodic approach.

Determine the cost of goods sold under FIFO.

Determine the cost of goods sold under LIFO.

Calculate average unit cost. (Round answer to 2 decimal places, e.g. 5.12.)

Suppose that, for a given year, national saving in a country (an open economy) equals 200, private consumption in final goods and services equals 100, and government consumption in final goods and services equals 20. In addition, firms invested 75 in final goods and services and spent 25 in intermediate goods. Households invested 50 in the domestic stock market. What is the level of output in this country in this year? And what is the balance of the current account? (Hint: Make sure you review the definition of gross domestic product.)

Bond A is a 15 year, 9% semiannual-pay bond priced with a yield of maturity of 8%, while bond B is a 15 year, 7% semiannual-pay bond priced with the same yield to maturity. Given that both bonds have par values of $1,000, what would be the prices of these two bonds?

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

A bank has made a 1-year loan at 4%. To fund the loan, it issued a 6-month deposit at 2.5%. It also purchased a 6x12 FRA at 3%. On the settlement date of the contract, 6-month LIBOR is 5%, and the bank issues a 6-month deposit at LIBOR. What is the bank’s interest margin (spread), in %, for the first six months and for the next?

1. 1.5% and 1.5%
2. 1.5% and 1%
3. 1.5% and −1%
4. 1% and −1%
5. 1% and 1%
6. 1.5% and 2%