The Blog

Paul Adams owns a health club in downtown Los Angeles. Health and Nursing Essay

1) Paul Adams owns a health club in downtown Los Angeles. He chargeshis customers an annual fee of $530 and has an existing customerbase of 500. Paul plans to raise the annual fee by 5.3 percentevery year and expects the club membership to grow at a constantrate of 3 percent for the next five years. The overall expenses ofrunning the health club are $74,400 a year and are expected to growat the inflation rate of 1.4 percent annually. After five years,Paul plans to buy a luxury boat for $494,000, close the healthclub, and travel the world in his boat for the rest of hislife. Required:What is the annual amount that Paul can spend while on his worldtour if he will have no money left in the bank when he dies? AssumePaul has a remaining life of 24 years and earns 10 percent on hissavings. (Do not include the dollar sign ($). Round your answer to2 decimal places. (e.g., 32.16)) Annual withdrawal $ 2) Laurel, Inc., and Hardy Corp. both have 16 percent coupon bondsoutstanding, with semiannual interest payments, and both are pricedat par value. The Laurel, Inc., bond has 4 years to maturity,whereas the Hardy Corp. bond has 12 years to maturity. Required:(a)If interest rates suddenly rise by 3 percent, what is thepercentage change in the price of these bonds? (Do not include thepercent signs (%). Negative amounts should be indicated by a minussign. Round your answers to 2 decimal places. (e.g., 32.16)) Percentage change in price Laurel % Hardy % (b)If interest rates were to suddenly fall by 3 percent instead, whatwould the percentage change in the price of these bonds? (Do notinclude the percent signs (%). Round your answers to 2 decimalplaces. (e.g., 32.16)) Percentage change in price Laurel % Hardy % 3) Suppose the real rate is 5.6 percent and the inflation rate is 1.9percent. Required:What rate would you expect to see on a Treasury bill? (Do notinclude the percent sign (%). Round your answer to 2 decimalplaces. (e.g., 32.16)) Rate on Treasury bill; 1) Paul Adams owns a health club in downtown Los Angeles. He chargeshis customers an annual fee of $530 and has an existing customerbase of 500. Paul plans to raise the annual fee by 5.3 percentevery year and expects the club membership to grow at a constantrate of 3 percent for the next five years. The overall expenses ofrunning the health club are $74,400 a year and are expected to growat the inflation rate of 1.4 percent annually. After five years,Paul plans to buy a luxury boat for $494,000, close the healthclub, and travel the world in his boat for the rest of hislife. Required:What is the annual amount that Paul can spend while on his worldtour if he will have no money left in the bank when he dies? AssumePaul has a remaining life of 24 years and earns 10 percent on hissavings. (Do not include the dollar sign ($). Round your answer to2 decimal places. (e.g., 32.16)) Annual withdrawal $ 2) Laurel, Inc., and Hardy Corp. both have 16 percent coupon bondsoutstanding, with semiannual interest payments, and both are pricedat par value. The Laurel, Inc., bond has 4 years to maturity,whereas the Hardy Corp. bond has 12 years to maturity. Required:(a)If interest rates suddenly rise by 3 percent, what is thepercentage change in the price of these bonds? (Do not include thepercent signs (%). Negative amounts should be indicated by a minussign. Round your answers to 2 decimal places. (e.g., 32.16)) Percentage change in price Laurel % Hardy % (b)If interest rates were to suddenly fall by 3 percent instead, whatwould the percentage change in the price of these bonds? (Do notinclude the percent signs (%). Round your answers to 2 decimalplaces. (e.g., 32.16)) Percentage change in price Laurel % Hardy % 3) Suppose the real rate is 5.6 percent and the inflation rate is 1.9percent. Required:What rate would you expect to see on a Treasury bill? (Do notinclude the percent sign (%). Round your answer to 2 decimalplaces. (e.g., 32.16)) Rate on Treasury bill

Is this the question you were looking for? If so, place your order here to get started!