Excel Solutions - Chapter 06

# Excel Solutions - Chapter 06 - Chapter 6 Problems 1-75...

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Chapter 6 Problems 1-75 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green

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Chapter 6 Question 1 Input area: Output area: Discount rate 24% Year Cash flow 1 \$1,200 2 600 3 855 4 1,480 \$2,432.40
Chapter 6 Question 2 Input area: Discount rate 5% # of years for X 9 # of years for Y 5 Payment for X \$4,000 Payment for Y 6,000 Output area: Value of X = \$28,431.29 Value of Y = \$25,976.86

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Chapter 6 Question 3 Input area: Output area: Discount rate 8% Year Cash flow 1 \$800 2 900 3 1,000 4 1,100 \$4,237.53
Chapter 6 Question 4 Input area: Required rate of return 10% # of years 15 Payment per year \$3,600 Output area: Present value \$27,381.89 PV (forever) \$36,000.00

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Chapter 6 Question 5 Input area: Interest rate on annuity 7.65% # of years 14 Initial investment \$28,000 Output area: Annuity payment = \$3,327.58
Chapter 6 Question 6 Input area: Interest rate on annuity 8.2% # of years 8 Annual revenues \$80,000 Output area: Present value \$456,262.25

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Chapter 6 Question 7 Input area: Interest rate on annuity 10.5% # of years 20 Annual deposit \$2,000 Output area: Future value of annuity = \$121,261.62
Chapter 6 Question 8 Input area: Interest rate 5.8% # of years 10 Desired amount \$80,000 Output area: Annual deposit = \$6,126.68

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Chapter 6 Question 9 Input area: Interest rate 9% # of years 7 Desired amount \$40,000 Output area: Loan payment = \$7,947.62
Chapter 6 Question 10,11 Input area: Interest rate 8% Desired amount \$15,000 Cost of policy \$195,000 Output area: Present value = \$187,500.00 Required interest rate = 7.69%

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Chapter 6 Question 12 Input area: Output area: Stated rate (APR) # of times per year Effective rate 11% 4 11.46% 7% 12 7.23% 9% 365 9.42% 17% Infinite 18.53%
Chapter 6 Question 13 Input area: Output area: Stated rate (APR) # of times per year Effective rate 7.94% 2 8.10% 7.35% 12 7.60% 15.55% 52 16.80% 23.27% Infinite 26.20%

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Chapter 6 Question 14 Input area: Output area: Stated rate (APR) # of times per year Effective rate First National Bank 12.2% 12 12.91% First United Bank 12.4% 2 12.78%

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Chapter 6 Question 15 Input area: Output area: Stated rate (APR) # of times per year Effective rate 15.70% 365 17% The borrower is actually paying annualized interest of 17.00% per year, not the 15.70% reported on the loan contract.
Chapter 6 Question 16 Input area: Interest rate 10.4% # of years 20 Deposit \$800 # of times compounded per year 2 Output area: Future value = \$6,077.42

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Chapter 6 Question 17 Input area: Interest rate 7.10% # of years 5 Deposit \$6,000 # of times compounded per year 365 Output area: Future value = \$8,556.79
Chapter 6 Question 18 Input area: Discount rate 11% # of years 6 Future value of investment \$24,000 # of times compounded per year 365 Output area: Present value of investment = \$12,405.67

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Chapter 6 Question 19 Input area: Interest rate 30% Compounding periods 12 Output area: APR = 360.00% EAR = 2229.81%
Question 20 Input area: Discount rate 8.2% # of years 5 Future value of investment

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Excel Solutions - Chapter 06 - Chapter 6 Problems 1-75...

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