Based on US mortality statistics, the probability that a 30-year old white female will die within the next year is 0.000642 (and so the probability of living another year is 1-0.000642 = 0.999358). What premium should a life insurance company charge to break even on a $500,000 one-year term insurance policy for a 30-year old white female? Please select the closest response.

After graduation, you start your job with a salary of $70,000 per year (paid annually). Starting the second year, your salary increases by a rate of 3% per year through year 30 and then you retire. Determine the amount available in your retirement account when you retire if you put 12% of salary in the retirement account on an annual basis. Suppose the interest rate on the retirement account is 5% per year.

Luke just purchased a tractor for the farm. He will receive free maintenance the first year. After the first year he expects his maintenance costs to be $250 in the second year and then increase by $250 each year thereafter (i.e. $500 in year 3, etc.). How much money should Luke set aside for maintenance costs when he purchases the tractor? The tractor is expected to last 15 years. Assume 5% interest.

Bixby Inc. is evaluating expansion into a new market. The firm estimates an after-tax cost of $1,400,000 and forecast that such an investment will yield after-tax cash flows for 5 years: $600,000 in year 1, $700,000 in year 2, $700,000 in year 3, $200,000 in year 4, and $300,000 in year 5. If the CFO of Bixby has set a required payback period of 2.5 years, what is the project’s actual payback period (in years) and should they pursue it?

A city has constructed a transit system hub downtown. It anticipated that in 20 years the hub will require renovation at a cost of $400,000.Rent for shops at the station is charged on an annual basis each year begining in year 1and will increase by $50 each year following.Given the rent is deposited at the end of each year into an investment account earning 5% intrest.How much should the initial rent collected be(in year 1)to just cover the cost of the rehabilitation

At the beginning of the current year, Snell Co. total assets were $282,000 and its total liabilities were $191,200. During the year, the company reported total revenues of $127,000, total expenses of $93,000 and dividends of $22,000. There were no other changes in equity during the year and total assets at the end of the year were $294,000. The company's debt ratio at the end of the current year is:

A: 35.0%.

B: 65.0%.

C: 67.8%

D: 147.00%

E: 53.8%

76% of all bald eagles survive their first year of life. If 45 bald eagles are randomly selected, find the probability that

a. Exactly 34 of them survive their first year of life. Correct
b. At most 33 of them survive their first year of life. Correct
c. At least 35 of them survive their first year of life._______
d. Between 34 and 41 (including 34 and 41) of them survive their first year of life._______

The following information is for the next five questions:

Ryan and Laurie Middleton just purchased their first home with a traditional (monthly compounding and payments) 6% 30-year mortgage loan of $150,000.

What is their monthly payment?

What is their interest payment during the first year?

What is their principal payment during the first year?

What is their interest payment during the 25th year?

What is their principal payment during the 25th year?

Use the discounted payback method, the net present value method, and the profitability index method to evaluate the following project:

Year 0 Initial Investment 900,000

Year 1 Income 175,000

Year 2 Income 450,000

Year 3 Additional investment 100,000

Year 4 Income 630,000

Discount rate 7%

DPB __________ years

NPV ______________

PI ______________

Would you recommend that the board accept or reject this project? ________________ Accept or reject

Suppose that the one-year interest rate is 10 percent in the United Kingdom. The expected annual rate of inflation for the coming year is 4 percent for the United Kingdom and 7 percent for Switzerland. The current spot exchange rate is £:SFr = 3.75. Using the precise form of the international parity relations, compute the one-year interest rate in Switzerland, the expected Swiss franc to pound exchange rate in one year, and the one-year forward exchange rate.