# FINANCIAL MANAGEMENT: For this assignment, you will complete the Unit IV Assignment Worksheet. This assignment will allow you to demonstrate what you have learned in this unit. Access the Unit IV Assi

FINANCIAL MANAGEMENT:

For this assignment, you will complete the Unit IV Assignment Worksheet. This assignment will allow you to demonstrate what you have learned in this unit.

Access the Unit IV Assignment -1B22 Worksheet in Blackboard to complete this assignment. Save all of your work directly to the template and submit it in Blackboard for grading.

This assignment will allow you to demonstrate the following objectives:

·       Calculate the annual payment on a loan using the present value of an annuity.

·       Use discounting to determine the present value of an annuity.

·       Calculate the future value of an annuity and periodic annuity payments.

·       Determine the present value of a bond.

Instructions:    Answer the questions directly on this document. When you are finished, select “Save As,” and save the document using this format: Student ID_UnitIV. Upload this document to BlackBoard as a .doc, docx, or .rtf file. Show all of your work.

1.     Your supervisor has tasked you with evaluating several loans related to a new expansion project. Using the PVIFA table (table 9.4 in the textbook), determine the annual payment on a \$365,900, 7% business loan from a commercial bank that is to be amortized over a five-year period. Show your work. Does this payment seem reasonable? Explain.

2. Dan is considering borrowing \$489,000 to purchase a new condo. Based on that information, answer the following questions. Show all work.

a)     Calculate the monthly payment needed to amortize an 5.5% fixed-rate 30-year mortgage loan.

b)     Calculate the monthly amortization payment if the loan in (a.) was for 15 years instead.

c)     In a few sentences, explain the effect of a smaller loan period. How does it influence the monthly payment and interest?

3 Use a financial calculator or computer software program to answer the following questions:

a)     Melanie is trying to save money for retirement and has a future goal of \$750,000 at the end of 20 years. Determine the present value of her goal using a discount rate of 12%.

b)     How would the present value change if the \$750,000 is to be received at the end of 15 years instead? Explain the impact and show your work?

4. Your friend Anne is planning to invest \$500 each year for five years and will earn a rate of 5.5 percent per year.

a)     Determine the future value of this annuity due if her first \$500 is invested now. Show your work.

b)     What is the difference between an annuity due and an ordinary annuity? Explain.

5. Jimmy has a bond with a \$1,000 face value and a coupon rate of 8.25% paid semiannually. It has a five-year life.

a)     If investors are willing to accept a 12 percent rate of return on bonds of similar quality, what is the present value or worth of this bond? Show your work.

b)     What is the impact of paying interest semi-annually rather than annually? Explain.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.