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
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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
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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
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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
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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
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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%
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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.
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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
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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%
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Question 20 Input area: Discount rate 8.2% # of years 5 Future value of investment
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This note was uploaded on 05/26/2010 for the course BUSINESS A 139 taught by Professor Cheng during the Spring '09 term at 東京大学.

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

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