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Unformatted text preview: Monthly costs = 495(6)(2) = $5940 End of quarter costs = 5940(3) = $17,820 F = 17,820(F/A,1.5%,4) = $72,900 4.46 0.127 = e r – 1 r/yr = 11.96% r /quarter = 2.99% 4.49 i = e 0.02 – 1 = 2.02% per month A = 50(A/P,2.02%,36) = 50{[0.0202(1 + 0.0202) 36 ]/[(1 + 0.0202) 36 – 1]} = $1,968,000 4.52 Set up F/P equation in months: 3P = P(1 + i) 60 3.000 = (1 + i) 60 i = 1.85% per month (effective) 4.55 First move cash flow in years 04 to year 4 at i = 12%: F = $36,543 Now move cash flow to year 5 at i = 20%: F = 36,543(F/P,20%,1) + 9000 = $52,852 4.58 Answer is (d) 4.61 Answer is (d) 4.64 i/semi = e 0.02 –1 = 0.0202 = 2.02% Answer is (b) 4.67 P = 7 + 7(P/A,4%,25) = $116.3547 million Answer is (c) 4.70 PP>CP; must use i over PP (1 year); therefore, n = 7 Answer is (a) 4.73 Deposit in year 1 = 1250/(1 + 0.05) 3 Chapter 4 2 = $1079.80 Answer is (d) Chapter 4 3...
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 Fall '07
 CPKoelling
 Prime number, 2%, 1.85%, $5940, 2.99%

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