Unit 6 Corrections

# Unit 6 Corrections - Exercise 6 Siearra Fries...

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Exercise 6 Siearra Fries 32-7 (late)= 25 /46 9.1 2.a. 4.2% semi annual 5.5 years j = 4.2 annual rate b. 2 periods per year = m c. 4.2%/2 = 2.1% = i d. 5.5x2=11=n e. (1+0.0210)^11 f. =1.2568 4a. J=16% b. 365 c. i=0.16/365 =0.0004 d. 365x2=730 e.

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(1+i)^n =(1+0.004)^730 730 1 0.0438  -1 f. 18.43 -1 9.2 Exercises 2. PV=5000(1+0.03875)^11.67 =5000(1.55842) =7792.10 – 5000 = \$2792.10 Interest Paid 4. FV=8000(1+0.108)^7.4167 =8000(2.1396) =\$17,116 8. FV=2500(1+0.0375)^36 2500(3.7633) =\$9408.31 1.5 YEARS LATER 9408.31(1+0.0042)^6 =9408.31(1.0255) =\$9647.90
PV = 2500.00; I / Y 4.5; C / Y 12;   4.5% 0.375% 0.00375; 12 i 3 12 36 n 36 2500 1.00375 2500 1.144248 \$2860.619581 FV Balance 1.5 years later: PV = 2860.619581; I / Y = 5; C / Y = 4;   5% 1.25% 0.0125; 4 i 1.5 4 6 n 6 2860.619581 1.0125 2860.619581 1.077383 3081.98 FV -1 12. 2000(1+0.1875)^7 =2000(1.01875) =\$2277.73 4077.73(1+.01875)^7 4077.73(1.01875)^7 =4643.99 6343.99(1+.01875)^7.25 6343.99(1.14417) =\$7258.59 I / Y 7.5; C / Y 4;   7.5% 1.875% 0.01875; 4 i

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Balance on December 1, 2016: PV = 2000.00; 2.75 4 11 n 11 2000 1.01875 2000 1.226715 \$2453.430923 FV Balance on September 1, 2020: PV = 2453.430923 + 1800.00 = 4253.430923;   1.75 4 7 n 7 4253.430923 4253. 1.01875 1.138868 \$4 430923 844.095945 FV Balance on December 1, 2027: PV = 4844.095945 + 1700.00 = 6544.095945;   7.25 4 29 n 29 6544.095945 6544.095945 1.01875 1.713804 \$11 215.29 FV -1 18.
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