Calculate the gross savings percentage finance question answer img
N = 4
I/Y = (1+.075)/(1+.0625) -1 = 1.1765%
PV = ? = $1,007.417.06 = $1,007,417
N = 22
3. What is the total financing activities during the year?
($19,425)
Total Cash Flow – Targeted for retirement = Net Cash Flow
Total Cash Flow = Cash Flow from Operating Activities – Capital Expenditure -+ Financing Activities
| Business Income | 115,000 | ||
|---|---|---|---|
| Interest Income | 1,500 | ||
| Dividend Income | 2,200 | ||
| Total Income | 118,700 | ||
| Hobbies | 550 | ||
| Recreational Expenses | 5,500 | ||
| Vacation Expenses | 2,500 | ||
| Total Discretionary | 8,550 | ||
5. What is the total cash flow from operations during the year?
$87,495
| Business Income | 115,000 | ||
|---|---|---|---|
| Interest Income | 1,500 | ||
| Dividend Income | 2,200 | ||
| Total Income | 118,700 | ||
| Hobbies | 550 | ||
| Recreational Expenses | 5,500 | ||
| Vacation Expenses | 2,500 | ||
| Total Discretionary | 8,550 | ||
7. Maria wants to accumulate $45,000 in today's dollar terms in the next 6 years. She expects to earn a return of 6.25% per year and inflation is expected to be 1.75%. How much should be the serial payment in the 5th yearso that Maria can achieve the target? END MODE
PV = 0
PMT = ? = $6,712.58
Serial Payment 5 = $7,194.94*1.0175 = $7,320.85 = $7,321
Serial Payment 6 = $7,320.85*1.0175 = $7,448.96
I/Y = (1.0625)/(1.0175) – 1= 4.4226%
PV = 0
Serial Payment 4 = $7,071.19*1.0175 = $7,194.94
Serial Payment 5 = $7,194.94*1.0175 = $7,320.85
N = 6
I/Y = (1.0625)/(1.0175) – 1= 4.4226%
Serial Payment 3 = $6,949.58*1.0175 = $7,071.19
Serial Payment 4 = $7,071.19*1.0175 = $7,194.94
END:
PV = 0
BGN:
PV = 0
$43,954.32 - $41,564.37 = $2,389.95 = $2,390
Dorothy has $750 in cash, $2000 in savings account, $34,300 in stocks, $5,500 in bonds, and owns a car worth $15,500. She had $1,500 in credit card payments and an education loan of $24,000 of which $2,700 is due during the current year. She has a mortgage loan of $300,000 of which $7,000 due this year. She has an auto loan of $9,500 of which $3,700 is due in the next 12 months. She owns a home worth $350,000, furniture and fixtures of $1,500, appliances with a value of $1,000, a Condo worth $120,000 and stamp collection of $1,000. She also has mortgage on condo for $97,500 of which $3,200 is payable during the current year.
12. What is Dorothy total current liabilities?
$18,100
14. What is Dorothy net worth?
$99,050
$162,183
PV = $25,000
A household has the following statistics related to Balance Sheet and annual Cash Flow:
| Balance Sheet Items: | in Dollars |
|---|---|
| Cash | 2,500 |
| CD | 12,000 |
| Savings Account Balance | 3,500 |
| Credit Card Debt | 9,500 |
| Current Year Portion of mortgage | 7,800 |
| Cash Flow Items: | |
| Salary | 115,000 |
| Dividend Income | 1,500 |
| Discretionary Expenses | 8,000 |
| Nondiscretionary Expenses | 28,975 |
| Debt Repayment | 8,700 |
| Retirement Investments | 15,500 |
| Capital Expenditure | - |
16. Compute the Nondiscretionary Cost percentage
$5.84
Liquid Assets/Monthly Household Expenses = Emergency Fund Ratio
$18,000/$3,081.25 = 5.84%
18. Compute the Current Ratio.
19. Compute the Gross Savings percentage.
$68.26%
$8,000 / ($115,000 + $1,500) = .0687 = 6.87%