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period. What will Hinds have to pay in annual payments for this
equipment?
Chapter 5: Problem 7
7. Future value with periodic rates. Matt Johnson delivers newspapers
and is putting away $15.00 every month from his paper route
collections. Matt is eight years old and will use the money when he
goes to college in ten years. What will be the value of Matt’s account
in ten years with his monthly payments if he is earning 6% (APR),
8% (APR), or 12% (APR)?

Chapter 5: Advanced Problem 1a & 1b
1. Monthly amortization schedule. Sherry and Sam want to purchase a
condo at the coast. They will spend $650,000 on the condo and are
taking out a loan for the whole amount for the condo for twenty years
at 7.0% interest.
a. What is the monthly payment on the mortgage? Construct the
amortization of the loan for the twenty years in a spreadsheet to show
the interest cost, the principal reduction, and the ending balance each
month.
b. Then change the amortization to reflect that after ten years, Sherry
and Sam will increase their monthly payment to $7,500 per month.
When will they fully repay the mortgage with this increased payment
if they apply all the extra dollars above the original payment to the
principal?
Chapter 14: Problems 9, 10, 11 & 12 listed below:
9. Financial ratios: Liquidity. Calculate the current ratio, quick ratio,
and cash ratio for Tyler Toys for 2013 and 2014. Should any of these
ratios or the change in a ratio warrant concern for the managers of
Tyler Toys or the shareholders?
10. Financial ratios: Financial leverage. Calculate the debt ratio,
times interest earned ratio, and cash coverage ratio for 2013 and 2014
for Tyler Toys. Should any of these ratios or the change in a ratio
warrant concern for the managers of Tyler Toys or the shareholders?
11. Financial ratios: Asset management. Calculate the inventory
turnover, days’ sales in inventory, receivables turnover, days’ sales in