Chapter_04

Chapter_04 - Chapter 4 Problems 1-76 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE Some

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Unformatted text preview: Chapter 4 Problems 1-76 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 Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In." 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.

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Chapter_04 - Chapter 4 Problems 1-76 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE Some

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