Suppose Stillman’s finance department has an endowment worth $[v],000,000. Starting next year, the department will spend $[c],000 per year from the endowment. What return will the University need to earn on its endowment to ensure that the funds never run out? (Enter your response as a whole number plus two decimal places. i.e. 2.25, not 2.25% or 0.0225)

Emma is working on a long-term consulting project. The company will pay her the following amounts over the next 3 years: Today: $[y0],000 1 Year from Today: $[y1],000 2 Years from Today: $[y2],000 3 Years from Today: $[y3],000 The current discount rate is [r]%. What is the present value of Emma’s compensation?

A certain loan requires the borrower make equal monthly payments. This is an example of a: 

Bank A offers semi-annual compounding, whereas Bank B offers quarterly compounding. Also, the APR at bank A is higher than at bank B. Which bank has a higher EAR?

Consider an annuity. If the discount rate increases, what effect will this have on the present value of the annuity?

Blake is considering depositing $[d] in a bank account that will pay simple interest at a rate of [r]% per year. How much money will he have in the account after [y] years?

Starting at the end of this year, George plans to start saving for retirement by depositing $[c],000 per year into a savings account. He will continue this for the next [y] years. Assume he will earn [r]% on his investment. How much will George have saved after [y] years?

Bank A offers monthly compounding, whereas Bank B offers quarterly compounding. Also, the APR at bank A is higher than at bank B. Which bank has a higher EAR?

Fundamental Fitness recently leased a new location. The company will have to pay an annual lease fee of $[c],000 at the beginning of each year for the next [y] years.  The discount rate is currently [r]%. What is the present value of this lease contract?

Bank A offers semi-annual compounding, whereas Bank B offers quarterly compounding. Also, the APR at bank A is lower than at bank B. Which bank has a higher EAR?