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7.8
Conventional CF series, so there is a single i* value.
0 = 130,000 – 49,000(P/A,i%,8) + 78,000(P/A,i%,8) + 1000(P/G,i%,8)
+ 23,000(P/F,i%,8)
Solve by trial and error, Excel builtin function or graphical method.
i = 19.2%
per year
(13 points)
7.12
Conventional CF series, so there is a single i* value.
0 = 40 – 28(P/A, i%,3) + 5(P/F,i%,4) + 15(P/F,i%,5) + 30(P/A,i%,5)(P/F,i%,5
Solve by trial and error, Excel builtin function or graphical method.
i = 5.2% per year
(13 points)
7.15
Conventional CF series, so there is a single i* value.
0 = 90,000(A/P,i%,24) – 0.014(6000) + 0.015(6000)(150)
0 = 90,000(A/P,i%,24) + 13,416
Solve by trial and error, Excel builtin function or graphical method.
i = 14.3% per month
(13 points)
7.18
Conventional CF series, so there is a single i* value.
0 = 450,000 – [50,000(P/A,i%,5) –10,000(P/G,i%,5)] + 10,000(P/A,i%,5)
+10,000(P/G,i%,5) + 80,000(P/A,i%,7)(P/F,i%,5)
Solve by trial and error, Excel builtin function or graphical method.
i = 2.36% per quarter
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 Spring '09
 inkla

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