EAR = (1 + APR/n)n – 1 FV = PV * (1 + r/n)t*n FV Factor = (1…

EAR = (1 + APR/n)n – 1 FV = PV * (1 + r/n)t*n FV Factor = (1 + r/n)t*n PV = FV / (1+ r/n)t*n PV Factor = 1 / (1 + r/n)t*n Annuity PV = Payment * (1 – PV Factor) / r Annuity PV Factor = (1 – PV Factor) / r Annuity FV = Payment * (FV Factor – 1) / r Annuity FV Factor = (FV Factor – 1) / r Loan Balance = (Loan / Annuity PV Factor of the loan) * (Annuity PV Factor of the remaining payments) PV Perpetuity = Payment / r PV Growing Perpetuity = Payment / (r – g)

When evaluating financial ratios, many people mistakenly thi…

When evaluating financial ratios, many people mistakenly think that having a current ratio greater than one must be a good thing.  Discuss why it might be a bad thing to have a current ratio that high, and how would you determine whether you want a higher or lower current ratio.

You retire at age 60 and expect to live another 27 years. On…

You retire at age 60 and expect to live another 27 years. On the day you retire, you have $464,900 in your retirement savings account. You are conservative and expect to earn 4.5% on your money during your retirement. How much can you withdraw from your retirement savings each month if you plan to die on the day you spend your last penny?