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460hw4

# 460hw4 - ISE 460 Fall 2006 Assignement 04 Solution A 1 2 3...

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ISE 460 Fall 2006 Assignement 04 Solution 05/12/2009 No.2 At first I was tempted to do this on a simplified annual basis, but when it said to start in May, I assumed I had to do it monthy Monthly summer savings \$25 Monthly winter savings \$40 Annual Interest rate 9% Number of years 5 Let's look at One year at a time Investment at time 0 (May) (\$1) PV of Returns in months 1,2,3 \$73.89 -PV(B5/12,3,B3) PV of Returns in months 7,8,9 \$113.04 -PV(B5/12,6,,-PV(B5/12,3,B4)) PV of additional four years of saving \$605.59 -PV(B5,4,B10+B9) Total savings = investment \$792.52 B10+B11 Note: savings without time value \$975 No.3 Note that the problem section points you to Section 5.3 in the chapter M K C n r 360 12 30 48 0.7527% 9.00% (1+F18/A18)^C18-1 Payment (\$149.40) PMT(E18,D18,B21) Principal \$6,000 Interest \$1,171.37 -B20*D18-B21 Payment at no interest \$125 B21/D18 No. 4 Points Loaned n r Pricipal 3 \$130,000 360 9% \$126,100 B27*(1-A27/100) Payment (\$1,046.01) PMT(D27/12,C27,B27) Rate 9.344% 12*RATE(C27,B29,E27)

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460hw4 - ISE 460 Fall 2006 Assignement 04 Solution A 1 2 3...

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