You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted to medical school is about 20 percent. If you are accepted to medical school, then your starting salary when you graduate will be $320,000 per year. However, if you are not accepted, then you would choose to work in a zoo, where you will earn $46,000 per year. Without considering the additional years you would spend in school if you study medicine or the time value of money. Problem 7.03 a1-a2(a1) Your answer is correct. What is your expected starting salary? Expected starting salary $ eTextbook and Media Problem 7.03 a1-a2(a2) LA Your answer is incorrect. Standard deviation $ 100800 What is the standard deviation of that starting salary? Attempts: 1 of 3 used

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted to medical school is about 20 percent. If you are accepted to medical school, then your starting salary when you graduate will be $320,000 per year. However, if you are not accepted, then you would choose to work in a zoo, where you will earn $46,000 per year. Without considering the additional years you would spend in school if you study medicine or the time value of money. Problem 7.03 a1-a2(a1) Your answer is correct. What is your expected starting salary? Expected starting salary $ eTextbook and Media Problem 7.03 a1-a2(a2) LA Your answer is incorrect. Standard deviation $ 100800 What is the standard deviation of that starting salary? Attempts: 1 of 3 used

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You have chosen biology as your college major because you would like to be a medical doctor. however, you find that the probability of being accepted to medical school is about 20 percent. if you are accepted to medical school, then your starting salary when you graduate will be $260,000 per year. however, if you are not accepted, then you would choose to work in a zoo, where you will earn $30,000 per year. without considering the additional years you would spend in school if you study medicine or the time value of money. What is your expected starting salary? WHat is the standard deviation of that starting salary?
Candace just accepted her first job paying a $48,000 salary and is planning to take a $5,000 vacation cruise throughout Europe for 2 weeks. She is debating whether to take the trip now and finance it with a promotion from the travel company offering no payments for a year at a monthly periodic rate of 1%, or wait the year and save to pay for the trip. If she takes the trip now she will start her career 2 weeks late. Approximately how much would she save by waiting a year and not taking her unpaid time from work to travel? $2,480. $634. $1,557. $600.
2. A friend of yours is considering quitting his job as an engineer to become a wedding photographer. He thinks that he will make more money this way. His current job as an engineer pays him $87,500 annually. To switch to wedding photography, he will have to purchase photography equipment that will cost him $12,000. He also does not expect to make much money when he first starts out. He estimates that he would make $39,000 in his first year. But as he gets his name out there, he expects to make $7500 more each year. Assuming an interest rate of 5% and a 20-year analysis period, compute the net present worth of both options to recommend to your friend whetherhe should become a wedding photographer or not. Answer: ???= $1,090,425, ?W?= $1,212 ,678 Can someone show how this was solved?
You have been transferred to New Mexico for your post-graduate internship. You and your spouse have 2 children. You decide you need a home. The current owner of the home will sell it to you for $120,000, or you can rent it for $900 per month on a 1-year lease. You believe you could resell the home after 1 year for $130,000. Should you purchase the home or rent it?
ou are 20 years old and have completed your BBA and want to pursue further education but you don’t want to take money from your father. Your plan is to start working and earn enough money so that you can finance your degree on your own and get yourself enrolled in five years’ time. You estimate that the annual cost of doing an MBA 5 years from today will be PKR 400,000 and the program will be two years long. You will need the money at the beginning your program so that you are not worried about how to clear your dues during your studies. Luckily you go for a job interview and they hire you and you start working at a salary of PKR 25,000. So you decide that 50% you will deposit in a saving account at a 10% rate with monthly compounding for your further studies and the remaining amount you will use for your daily expenses. If you are given an option to invest at the 10% saving rate with monthly compounding or 10.5% semiannual compounding, which would you chose?
You are a young personal financial adviser. Molly, one of your clients approached you for consultation about her plan to save aside $450,000 for her child’s higher education in United States 15 years from now. Molly has a saving of $120,000 and is considering different alternative options: Investment 1: Investing that $120,000 in a saving account for 15 years. There are two banks for her choice. Bank A pays a rate of return of 8.5% annually, compounding semi-annually. Bank B pays a rate of return of 8.45 annually, compounding quarterly. Investment 2: Putting exactly an equal amount of money into ANZ Investment Fund at the end of each month for 15 years to get 330 000 she still shorts of now. The fund is offering a rate of return 7% per year, compounding monthly.How much is the annual interest rate, assuming compounding annually Molly should aim at if she chooses to invest her $120 000 in a saving account to get the $450,000 ready in just 10 years from now?
You graduated college six years ago with an undergraduate degree in Finance. Although satisfied withyour current job, your goal is to become an investment banker, and you wonder if an MBA degree wouldallow you to achieve that goal. After examining schools, you have narrowed your choice to eitherWilton University or Mount Perry College. Although internships are encouraged by both schools, to getcredit for the internship, no salary can be paid. Other than internships, neither school will allowstudents to work while enrolled on the MBA program. However, thanks to a bequest from yourgrandmother, your savings account has enough money to cover the entire cost of the MBA programYou currently work a money management firm, earning $53, 000 annually. Your salary is expected toincrease 3% per year until retirement. You expect to work for 38 more years. Your current job includesa fully paid health insurance plan. Your current average tax rate is 26%.The Ritter College of Business at Wilton…

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