UGBA 103 _1 Answers

UGBA 103 _1 Answers - 1 = $471.70. (d) PV = 500/(1 + .06) 2...

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UGBA 103 Summer 2010 Haas School of Business John Gonzales Assignment #1 Answers Do problems 2-1, 2-2, 2-3, 2-7, 2-9, 2-10 and 2-14 on pages 76 and 77 of the text. 2.1. FV = 10,000(1 + .10) 5 = $16,105.10. 2.2. PV = 5,000/(1 + .07) 20 = $1,292.10. 2.3. 250,000 = 1,000,000/(1 + r) 18 r = 8.006%. 2.7 PV = 100/(1 + .08) 1 + 100/(1 + .08) 2 + 100/(1 + .08) 3 + 200/(1 + .08) 4 + + 300/(1 + .08) 5 + 500/(1 + .08) 5 = $923.98. FV = 100(1 + .08) 5 + 100(1 + .08) 4 + 100(1 + .08) 3 + 200(1 + .08) 2 + + 300(1 + .08) 1 + 500 = $1,466.23. 2.9. (a) FV = 500(1 + .06) 1 = $530.00. (b) FV = 500(1 + .06) 2 = $561.80. (c) PV = 500/(1 + .06)
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Unformatted text preview: 1 = $471.70. (d) PV = 500/(1 + .06) 2 = $445.00. 2.10. (a) FV = 500(1 + .06) 10 = $895.42. (b) FV = 500(1 + .12) 10 = $1,552.92. (c) PV = 500/(1 + .06) 10 = $279.20. (d) PV = 500/(1 + .12) 10 = $160.99. 2.14(a) PV A = 100/(1 + .08) 1 + 400/(1 + .08) 2 + 400/(1 + .08) 3 + 400/(1 + .08) 4 + 300/(1 + .08) 5 = $1,251.25. PV B = 300/(1 + .08) 1 + 400/(1 + .08) 2 + 400/(1 + .08) 3 + 400/(1 + .08) 4 + 100/(1 + .08) 5 = $1,300.32. (b) PV A = 100 + 400 + 400 + 400 + 300 = $1,600. PV A = 300 + 400 + 400 + 400 + 100 = $1,600....
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This note was uploaded on 07/17/2010 for the course UGBA 18195 taught by Professor Johngonzales during the Summer '10 term at Berkeley.

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