sol2 - FIN300 Introduction to Corporate Finance Professor...

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FIN300 Introduction to Corporate Finance Professor H. Wang Solutions to Problem Set #2 1. a. $1,000 / 1.1 7 = $513.16 b. $2,000 / 1.1 = $1,818.18 c. $500 / 1.1 8 = $233.25 2. () 27 27 Amount 1.08 $1,500,000 $1,500,000 $1,500,000 Amount $187,780.23 7.988061469 1.08 ×= == = 3. FV with annual compounding: 6 100,000 1 0.0767 155,800.30 += FV with quarterly compounding: 24 0.0752 100,000 1 156,363.17 4 ⎛⎞ ⎜⎟ ⎝⎠ FV with monthly compounding:
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sol2 - FIN300 Introduction to Corporate Finance Professor...

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