Ch6 HW - Francis Roman Chapter 6 February 27, 2008 1....

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Francis Roman Chapter 6 February 27, 2008 1. Given: Discount Rate: 10% 18% 24% Year 1 $1,100.00 $1,100.00 $1,100.00 Year 2 $720.00 $720.00 $720.00 Year 3 $940.00 $940.00 $940.00 Year 4 $1,160.00 $1,160.00 $1,160.00 Equation: Solution: $3,093.57 $2,619.72 $2,339.03 2. Given Investment: X X Y Y Discount Rate: 5% 22% 5% 22% Year 1 $7,000.00 $7,000.00 $9,000.00 $9,000.00 Year 2 $7,000.00 $7,000.00 $9,000.00 $9,000.00 Year 3 $7,000.00 $7,000.00 $9,000.00 $9,000.00 Year 4 $7,000.00 $7,000.00 $9,000.00 $9,000.00 Year 5 $7,000.00 $7,000.00 $9,000.00 $9,000.00 Year 6 $7,000.00 $7,000.00 Year 7 $7,000.00 $7,000.00 Year 8 $7,000.00 $7,000.00 Equation: PVa = C{[1-(1/(1+R)^T)]/R} Solution: $45,242.49 $25,334.87 $38,965.29 $25,772.76 3. Given Discount Rate: 8% 11% 24% Year 1 $700.00 $700.00 $700.00 Year 2 $950.00 $950.00 $950.00 Year 3 $1,200.00 $1,200.00 $1,200.00 Year 4 $1,300.00 $1,300.00 $1,300.00 Equation: FV=CF{[(1+r)^t-1]/r} Solution $4,585.88 $4,759.84 $5,583.36 4. Given Investment $4,600.00
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This note was uploaded on 04/03/2008 for the course FIN 100 taught by Professor Staff during the Spring '08 term at Pennsylvania State University, University Park.

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Ch6 HW - Francis Roman Chapter 6 February 27, 2008 1....

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