What is the present value of a 100 lump sum to be received i

What is the present value of a $100 lump sum to be received in 5 years if the opportunity cost rate is 10 percent?

What is the future value of a $100 lump sum invested for 5 years in an account paying 6.9 percent interest?

What is the future value of a $250 lump sum invested for 5 years in an account paying 7.8% percent interest?

An facility borrows $150,000 for 9 months at 2.75 percent annual interest rate. How much interest will the facility pay for the loan?

A facility makes a $350 purchase with a 2-10 net 30 provision. What is the effective annual interest rate if the facility pays on day 11? On day 30?

Based on the information below, determine the Current Ratio for this facility and identify how this ratio compares to Optum (2017) for audited financial statements from 2015.

ASSETS                                                                                   2014                              2015

Cash and cash equivalents                                                         $74                                 $ 41       

Short Terrn Investments 147                                    137

Accounts receivable, net 727                                    476

Inventories 27                                       22

Total current assets $ 975                                 $676

Investments $ 125                                 $ 100

Property and Equipment:

Medical and office equipment

$ 56

$ 54

Vehicles

70

47

Total

$ 126

$ 101

Less: Accumulated depreciation

(45)

(24)

Net property and equipment

$     81

$ 77

Total assets

$1,181

$853

LIABILITIES AND EQUITY

Current Liabilities:

Notes payable

$     13

$ 13

Accounts payable

40

21

Accrued expenses

496

337

Total current liabilities

$ 549

$ 371

Long-term debt

154

167

Total liabilities

$ 703

$ 538

Equity (net assets)

$ 478

$ 315

Total liabilities and equity

$1,181

$ 853

Medical and office equipment	$ 56	$ 54
Vehicles	70	47
Total	$ 126	$ 101
Less: Accumulated depreciation	(45)	(24)
Net property and equipment	$     81	$ 77
Total assets	$1,181	$853

Solution

1 Present Value of $ 100 to be received in 5 yrs Present value 100*(1/(1.10^5) 62.09213 2 Future value of $ 100 invested for 5 yrs Future Value 100*(1.069^5) 139.601 3 Future value of $ 250 invested for 5 yrs Future Value 250*(1.078^5) 363.9434 4 Interest on $150000 150000*2.75%*9/12 3093.75 5 Current Ratio = Current assets/current liabilities Total Current assets 2015 676 Total Current liabilities 2015 371 Current ratio 676/371 Current ratio 1.822102 Total Current assets 2014 975 Total Current liabilities 2014 549 Current ratio 975/549 Current ratio 1.775956 The current ratio has increased in 2015 from 2014