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Homework 4

# Homework 4 - Emilie Gein Homework 4 1(378.65/337)1/2-1=.06=...

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Homework 4 1. (378.65/337) 1/2  -1= .06= 6% b. 138/.09=X X=1,533.33 < 1550. The investment is priced too high. 2. 1000(1+.04) 35 = 3,946.09 1000(1+.04) 20 = 2,191.12    Jack saves \$1,754.97  more than Jill. 3. FV= 38,000(1.035) 20 = 75,611.97 b. 1.035/1.02= 1.01471 real rate= 1.47% FV=38000(1.0147) 20 =50,999.82 4. 20,000(1/.05- 1/.05x1.05 4 )=  70,919/ (1.05 12 )=    35,737.69 22,000(1/.05- 1/.05x1.05 4 )= 78,010.9/ (1.05 16 )=  39,490.35 + 35,737.69= \$75,228.04       b.   X(1/.05- 1/.05x 1.05 12 )= 75,228.04 X=8487.63603 5. 399,900(1.026) 6 =  466482.7287/10= 46648.272 /(1.05)6= 34809.65944 6. 16,000(1.06 4 -1/ .06)1.06= X (1/.06-1/.06x1.06 10 ) X=10,080.52 b. 16,000(1.055 4 -1/.055)1.055= X (1/.055- 1/.055x1.055 10 ) X= 9724.20461 7. (50,000(1/.08- 1/.08x1.08 30 )= 562,889.17/ 1.08 40 )+(10,000(1/.08-1/.08x1.08 4 )=  33,121.27/1.08 15 ) 36,351.516= X(1/.08- 1/.08x1.08 40 ) X=3048 Stock Return Feb 11 .00502

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Homework 4 - Emilie Gein Homework 4 1(378.65/337)1/2-1=.06=...

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