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Unformatted text preview: Chapter 4 Problems 176 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Addin" be installed in Excel. To install these, click on "ToolsAddIns" and select "Analysis ToolPak and "Solver AddIn." k" Chapter 4 Question 1 Input area: Interest rate 7% Deposit $5,000 # of years 10 Output area: Compound interest $9,835.76 Simple interest $8,500.00 Difference = $1,335.76 Chapter 4 Question 2 Input area: Present value $1,000 Years Rate a. 10 5% b. 10 7% c. 20 5% Output area: a. Future value $1,628.89 b. Future value $1,967.15 c. Future value $2,653.30 Chapter 4 Question 3 Output area: Input area: Present value Years Interest rate Future value $11,529.77 6 5% $15,451 $20,154.91 9 11% 51,557 $61,266.87 18 16% 886,073 $10,067.28 23 19% 550,164 Chapter 4 Question 4 Input area: Output area: Present value Years Interest rate Future value $265 2 7.63% $307 360 9 10.66% 896 39,000 15 9.97% 162,181 46,523 30 8.12% 483,500 Chapter 4 Question 5 Input area: Output area: Present value Years Interest rate Future value $625 9.36 8% $1,284 810 24.81 7% 4,341 18,400 16.19 21% 402,662 21,500 8.20 29% 173,439 Chapter 4 Question 6 Input area: Output area: Present value Years Interest rate Future value $1.00 10.24 7% $2.00 1.00 20.49 7% 4.00 Chapter 4 Question 7 Output area: Input area: Present value Years Interest rate Future value $130,258,959.12 20 9.50% $800,000,000 Chapter 4 Question 8 Output area: Input area: Present value Years Interest rate Future value $52,827.67 10 11.0% $150,000 Chapter 4 Question 9 Input area: Annual payments $120 Interest rate 15% Output area: Present value $800.00 Chapter 4 Question 10 Input area: Present value $1,000 Years Rate a. 5 12% b. 3 10% c. 10 5% d. 8 7% Output area: a. Future value $1,822.12 b. Future value $1,349.86 c. Future value $1,648.72 d. Future value $1,750.67 Chapter 4 Question 11 Input area: Output area: Discount rate 24% Year Cash flow 1 $1,200 2 600 3 855 4 1,480 $2,432.40 Chapter 4 Question 12 Input area: Discount rate 5% # of years for X 9 # of years for Y 5 Payment for X $4,000 Payment for Y 6,000 Output area: Value of X = $28,431.29 Value of Y = $25,976.86 Chapter 4 Question 13 Input area: Required rate of return 10% # of years 15 Payment per year $3,600 Output area: Present value $27,381.89 PV (forever) $36,000.00 Chapter 4 Question 14 Input area: Interest rate 8% Desired amount $15,000 Cost of policy $195,000 Output area: Present value = $187,500.00 Required interest rate = 7.69% Chapter 4 Question 15 Input area: Output area: Stated rate (APR) # of times per year Effective rate 11% 4 11.46% 7% 12 7.23% 9% 365 9.42% 17% Infinite 18.53% Chapter 4 Question 16 Input area: Output area: Stated rate (APR) # of times per year Effective rate 7.94% 2 8.10% 7.35% 12 7.60% 15.55% 52 16.80% 23.27% Infinite 26.20% Chapter 4 Question 17 Input area: Output area: Stated rate (APR) # of times per year Effective rate First National Bank 12.2% 12 12.91% First United Bank 12.4% 2 12.78% Chapter 4...
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This note was uploaded on 12/14/2010 for the course FINC 311 taught by Professor Stanley,t during the Fall '08 term at Winthrop.
 Fall '08
 Stanley,T
 Finance

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