Finance Assignment 問題!急!送20點!

1.To complete your last year in business school and then go through law school, you will need $10,000 per year for 4 years, starting next year (that is, you will need to withdraw the first $10,000 one year from today).Your rich uncle offers to put you through school, and he will deposit in a bank paying 7 percent interest of money that is sufficient to provide the four payments of $10,000 each.

His deposit will be made today.
(a)How large must the deposit be?(10 marks)
(b)How much will be in the account immediately after you make the first withdrawal?(10 marks)

2.While John was a student at the University of Oklahoma, he borrowed $12,000 in student loans at an annual interest rate of 9 percent. If Steve repays $1,500 per year, how long, to the nearest year, will it take him to repay the loan?

3.Joanne borrowed $15,000 at a 14 percent annual rate of interest to be repaid over three years. The loan is amortized into three equal annual end-of-year payments.

(a)Calculate the amount end-of-years loan payment(5 marks)
(b)Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments(20 marks)
(c)Explain why the interest portion of each payment declines with the passage of time.(5 marks)

4.An investor has $100,000 cash in hand and is considering investing in the shares of two companies, H Co. and B. Co. The relevant information is as follows:

Rate of Return
Probability H. Co. B. Co.
0.25 40% -20%
0.25 -10 50
0.25 35 -9
0.25 -5 39

(a)Calculate the expected return from each security and the standard deviation of the return.(10 marks)
(b)If a portfolio consisting of 50% of H.Co. and 50% of B.Co. shares is held by the investors, what would the expected return from the portfolio and its standard deviation be?(10 marks)