This preview shows page 1. Sign up to view the full content.
Unformatted text preview: T $135,000 FV 10 N I/Y 10.03% 8% I/Y ± 75,000 PV PMT $195,000 FV 23 N PV $51,855.29 $5,000 PMT FV 2 N 8% I/Y PV $44,457.56 PMT $51,855.29 FV 15 N 15% I/Y PV $4,385.53 $750 PMT FV 5 N 12% I/Y PV $2,488.47 .80($450,000) PV PMT $4,385.53 FV 360 N 7.5%/12 I/Y PMT $2,517.17 $2,517.17 PMT FV 22 × 12 N 7.5%/12 I/Y PV $325,001.73 $6,000 PV FV 6 N 2.40% / 12 I/Y PMT FV $6,072.36 90 91 Enter 6 N 18% / 12 I/Y $6,072.36 PV PMT Solve for $6,639.78 – 6,000 = $639.78 35. Enter Solve for Enter Solve for Enter Solve for 36. Enter Solve for 37. Enter N 83.52 60 N 10% / 12 I/Y 12 N 15% I/Y 12 N 5% I/Y 12 N 10% I/Y $7,500 PMT FV $6,639.78 PV $51,102.69 FV PV $66,474.39 $7,500 PMT FV PV $40,654.64 $7,500 PMT FV PV ± $250 PMT $30,000 FV I/Y Solve for 0.727% 0.727% × 12 = 8.72% 38. Enter 360 N 6.8% / 12 I/Y $80,000 PV ± $1,650 PMT FV Solve for $250,000 – 184,070.20 = $65,929.80 Enter Solve for 360 N 6.8% / 12 I/Y PV $184,070.20 $1,200 PMT FV $65,929.80 PV PMT FV $504,129.05 92 39. CFo C01 F01 C02 F02 C03 F03 C04 F04 I = 10% NPV CPT $4,669.90 $0 $1,200 1 $0 1 $2,400 1 $2,600 1 PV of missing CF = $6,453 – 4,669.90 = $1,783.10 Value of missing CF: Enter Solve for 40. CFo $1,000,000 C01 $1,350,000 F01 1 C02 $1,700,000 F02 1 C03 $2,050,000 F03 1 C04 $2,400,000 F04 1 C05 $2,750,000 F05 1 C06 $3,100,000 F06 1 C07 $3,450,000 F07 1 C08 $3,800,000 F08 1 C09 $4,150,000 F09 1 C010 $4,500,000 I = 9% NPV CPT $18,194,308.69 2 N 10% I/Y $1,783.10 PV PMT FV $2,157.55 93 41. Enter 360 N I/Y 0.593% . 80($2,600,00 0) PV ± $14,000 PMT FV Solve for APR = 0.593% × 12 = 7.12% Enter Solve for 42. Enter Solve for 3 N 7.12% NOM EFF 7.35% 13% I/Y 12 C/Y PV $93,561.77 PMT $135,000 FV Profit = $93,561.77 – 96,000 = –$2,438.23 Enter Solve for 43. Enter Solve for Enter Solve for 44. Enter Solve for Enter Solve for 84 N 13% / 12 I/Y 96 N 9% / 12 I/Y 8 N 7% I/Y 17 N 3 N I/Y 12.04% 7% I/Y ± $96,000 PV PMT $135,000 FV PV $39,052.89 $4,000 PMT FV PV $22,729.14 PMT $39,052.89 FV PV $102,387.66 $1,500 PMT FV PV $123,869.69 $1,500 PMT $102,387.66 FV 94 45. Enter Solve for 15 × 12 N 9.8%/12 I/Y PV $1,200 PMT FV $488,328.61 FV = $488,328.61 = PV e.09(15); PV = $488,328.61 e–1.35 = $126,594.44 46. Enter Solve for 47. Enter Solve for 12 N PV@ t = 14: $2,100 / 0.073 = $28,767.12 7 N 7.3% I/Y PV $17,567.03 $26,000 PV PMT $28,767.12 FV I/Y 2.219% ± $2,491.67 PMT FV APR = 2.219% × 12 = 26.62% Enter Solve for 48. Enter Solve for Enter Solve for Enter Solve for Enter Solve for 18 N 6.15% I/Y 12 N 6.15% I/Y 8 N 6.15% I/Y 26.62% NOM EFF 30.12% 12 C/Y semiannual rate = (1.01)6 – 1 = 6.15% PV $32,883.16 $4,500 PMT FV Monthly rate = .12 / 12 = .01; 10 N 6.15% I/Y PV $20,396.12 PMT $32,883.16 FV PV $16,063.29 PMT $32,883.16 FV PV $11,227.04 PMT $32,883.16 FV 95 49. a. Enter Solve for 5 N 2nd BGN 2nd SET 11% I/Y PV $36,958.97 $10,000 PMT FV Enter Solve for b. Enter Solve for 5 N 11% I/Y PV $41,024.46 $10,000 PMT FV 5 N 2nd BGN 2nd SET 11% I/Y PV $10,000 PMT FV $62,278.01 Enter Solve for 50. Enter Solve for 51. Enter Solve for 52. Enter Solve for 5 N 2nd BGN 2nd SET 48 N 2nd BGN 2nd SET 2 × 12 N 11% I/Y PV $10,000 PMT FV $69,128.60 6.45% / 12 I/Y $65,000 PV PMT $1,531.74 FV 10.4% / 12 I/Y $3,500 PV PMT $160.76 FV PV of college expenses: 4 N 8.5% I/Y PV $114,645.88 $35,000 PMT FV Cost today of oldest child’s expenses: Enter Solve for 14 N 8.5% I/Y PV $36,588.29 PMT $114,645.88 FV 96 Cost today of youngest child’s expenses: Enter Solve for 16 N 8.5% I/Y PV $31,080.12 PMT $114,645.88 FV Total cost today = $36,588.29 + 31,080.12 = $67,668.41 Enter Solve for 54. Option A: Aftertax cash flows = Pretax cash flows(1 – tax rate) Aftertax cash flows = $175,000(1 – .28) Aftertax cash flows = $126,000 2ND BGN 2nd SET Enter Solve for 31 N 10% I/Y PV $1,313,791.2 2 $126,000 PMT FV 15 N 8.5% I/Y $67,668.41 PV PMT $8,148.66 FV Option B: Aftertax cash flows = Pretax cash flows(1 – tax rate) Aftertax cash flows = $125,000(1 – .28) Aftertax cash flows = $90,000 2ND BGN 2nd SET Enter Solve for $848,422.30 + 530,000 = $1,378,422.30 56. Enter Solve for Enter Solve for 35 N 8.4% / 12 I/Y 5 × 12 N 8.4% / 12 I/Y $24,000 PV 30 N 10% I/Y PV $848,422.30 $90,000 PMT FV PMT $491.24 $491.24 PMT FV PV $14,817.47 FV 97 Total payment = Amount due(1 + Prepayment penalty) + Last payment Total payment = $14,817.47(1 + .01) + $491.24 Total payment = $15,456.89 57. Preretirement APR: Enter Solve for NOM 10.48% 11% EFF 12 C/Y Postretirement APR: Enter Solve for NOM 7.72% 8% EFF 12 C/Y At retirement, he needs: Enter Solve for 240 N 7.72% / 12 I/Y PV $2,656,102.8 1 $20,000 PMT $1,000,000 FV In 10 years, his savings will be worth: Enter Solve for 120 N 10.48% / 12 I/Y PV $1,900 PMT FV $400,121.62 After purchasing the cabin, he will have: $400,121.62 – 320,000 = $80,121.62 Each month between years 10 and 30, he needs to save: Enter Solve for 58. Enter PV of purchase: 36 8% / 12 N I/Y Solve for $38,000 – 20,468.62 = $17,531.38 PV of lease: 36 8% / 12 N I/Y Solve for $16,594.14 + 1 = $16,595...
View
Full
Document
This note was uploaded on 07/10/2010 for the course FIN 6301 taught by Professor Eshmalwi during the Spring '10 term at University of TexasTyler.
 Spring '10
 eshmalwi
 Finance, Corporate Finance

Click to edit the document details