Finance Hmwk 1 - annually $35,000 principal for 10 years...

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1. B or E a. Market share = firm’s sales / total market sales 2. C a. FV = $2980 (1.055)^9 = $4824.90 3. 10.99 a. r = (FV/PV)^1/t – 1, so r = (250,000/57,999)^(1/14) – 1 = . 109999 4. D a. t = ln(62,5240 ) – ln(15,190) / ln(1.05) 5. 49,774.98 a. FV = $39,000 x (1.05)^5 = 49,774.98094 6. 24.04 years a. 127,000 = 19,000 x (1.09)^t, t = (ln(FV) – ln(PV) / ln(1.09) = 22.0445 7. $6,679.67 a. Bank A = 6% simple interest, bank B = 6% compounded
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Unformatted text preview: annually - $35,000 principal for 10 years – Bank A = 35,000 + (35,000 x .06) x 10 = 56,000. Bank B = 35,000 x (1.06)^10 = $62,679.66938 bank A – bank B 8. .07 and $2,368,417.15 a. r= (254,000/130)^1/112 – 1 = .069997 b. FV = 254,000(1.069997)^33 = 2,368,417.153 9. 10.00, 21.00, 15.00, 9.2 a. t = [ln(FV) – ln(PV)] – ln(1 +r) 10.-41.62 a. r = (11,000,000/14,300,000)^1/4 -1 = -41.62147...
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This note was uploaded on 12/12/2010 for the course FIN 300 taught by Professor Mishra during the Fall '08 term at University of Michigan.

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