This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
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...
View
Full
Document
 Spring '07
 CPKoelling

Click to edit the document details