You are thinking about investing in a mine that will produce $7,000 worth of ore in the first year (i.e., year 1). As the ore closest to the surface is removed, it will become more difficult to extract the ore. Therefore, the value of the ore that you mine will decrease at a rate of 2% per year (i.e., -2%) forever. If the appropriate interest rate is 3% per year, then the present value (PV0) of this mining operation is closest to:

You save $300 per month starting TODAY (i.e., at year 0) for 12 months to pay for your next vacation (the last contribution is 12 months from now). If your saving account pays 12% APR compounded monthly, how much will you be able to spend on your vacation after saving for 12 months (i.e., the value accumulated in month 12, immediately after you make the last contribution)? Show your work.

You are taking out a loan today (month 0) to finance an 18-month professional program. You will graduate at the end of month 18. The loan includes a 12-month grace period after graduation during which you are not required to make any payments. After the grace period ends, you must repay the loan using 60 equal monthly payments of $1,050, paid at the end of each month. Therefore: The first payment will be made at the end of month 31. The 60th (final) payment will be made at the end of month 90. Interest begins accruing immediately at month 0 on the outstanding loan balance and continues to accrue during the program and the grace period (no payments are required during these months, but interest is still charged). The interest rate on the loan is 12% APR, compounded monthly. (8 points) How much can you borrow today? (PV at month 0.) Show your work. (2 points) What is the future value of the payment stream (i.e., the value of this annuity) at the time of the final payment (end of month 90)? Show your work

Which of the following statements is FALSE about interest rates?

How coating of nanoparticles can improve their stability in vivo?

A company issued $500,000 of 6-year bonds at a discount. The effective interest rate is 9%, and the stated rate is 7%, payable annually. What amount of cash interest paid each year will be reported?

Which leader or event is associated with détente and efforts to ease tensions later in the Cold War, though not central to early 1950s readings?

On November 1, Year 1, Silver Corp. borrowed $300,000 by issuing a 6-month note payable with a stated annual interest rate of 8%. Interest and principal are due at maturity. What amount should Silver report as interest payable at December 31, Year 1?

On July 1, Year 1, Orion Ltd. received $120,000 for a 12-month service contract and initially recorded the entire amount as unearned revenue. Revenue is recognized evenly over time. At December 31, Year 1, Orion reports the following year-end balances (before adjusting unearned revenue): Accounts payable: $410,000 Accrued wages: $95,000 Unearned revenue (unadjusted): $120,000 Long-term note payable due June 30, Year 3: $600,000 What total amount should Orion report as current liabilities at December 31, Year 1 after making the required unearned revenue adjustment?

Please describe the principles of the DLS technique