BUSN 380 DEVRY WEEK 1 PROBLEM SET 1
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8. If you borrow $8,000 with a 5 percent interest rate to be repaid in five equal payments at the end of the<br />
next five years, what would be the amount of each payment? (Note: Use the present value of an annuity<br />
table in the Chapter 1 Appendix.)<br />
9. Based on the following data, compute the total assets, total liabilities, and net worth. Liquid assets,<br />
$3,670 Household assets, $89,890 Investment assets, $8,340 Long-term liabilities, $76,230 Current<br />
liabilities, $2,670<br />
10.Which of the following employee benefits has the greater value? Use the formula given in the<br />
“Financial Planning Calculations” – “Tax-Equivalent Employee Benefits” box found in Chapter 2 to<br />
compare these benefits. (Assume a 28 percent tax rate.)<br />
A nontaxable pension contribution of $4,300 or the use of a company car with a taxable value of $6,325.
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