# sol2 - FIN300 Introduction to Corporate Finance Professor H...

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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 H...

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