TVM_problems_answers - Answers : Additional Time Value of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 PV = -5000 N = 7 I = 7.25% PMT = 0 FV = $ 8161.15 2 FV = 5,000,000 N = 5 I = 100% PMT = 0 PV = $ 156,250 Investment (A) : PV = -500 FV = 1000 N = 6 I = 12.2462 % 3 Investment (B) : PV = -250 FV = 0 N = 10 PMT = 45 I = 12.4148 % Step 1: Compute future cost of trip PV = -2250 N = 4 I = 6% PMT = 0 FV = $ 2840.57 4 Step 2: Find required deposits PV = 0 FV = 2840.57 N = 4 I = 2% PMT = $ 689.19 5.7% APR, $2000 down PV = 17854 – 2000 = 15854 FV = 0 N = 5 I = 5.7% PMT = $ 3733.02 6.0% APR, $2500 down PV = 17854 – 2500 = 15354 FV = 0 N = 5 I = 6.0% PMT = $ 3644.98 5 5.5 % APR; how much down? PMT = -3250 FV = 0 N = 5 I = 5.5% PV = 13,878.42 17,854 – 13,878.42 = 3975.58 down Additional Time Value of Money Problems Answers : © 2003 Brian J. Henderson & Joseph M. Marks
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6 This problem has three steps to it. This is not unlike problems that may appear on the midterm, so get used to trying to organize this type of information. Let’s begin with a logical overview of this problem.
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

TVM_problems_answers - Answers : Additional Time Value of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online