{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

4.8 - • \$35,000 X 6.145(n=10 i=10 = \$215,075 • \$215,075...

This preview shows pages 1–8. Sign up to view the full content.

TIME VALUE OF MONEY  QUESTIONS (PAGES 1 -4) SOLUTIONS

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
# 4 a) \$10,000 X 7.336 (n=6, i=8%)  = \$73,360 b) \$10,000 X 14.192 (n=12, i=4%)  = \$141,920 c) \$10,000 X 767.09 (n=40, i=12%)  = \$7,670,900
# 5 a) \$10,000 X 9.487 (n=7, i=8%)  = \$94,870 - \$10,000  = \$84,870 b) \$10,000 X 16.627 (n=13, i=4%)  = \$166,270 -  \$10,000 = \$156,270 c) \$10,000 X 930.38 (n=41, i=12%)  = \$7,670,900 -  \$10,000 = \$7,660,900

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
# 7 \$250,000 X 1/(1+.10) 60 (n=60, i=10%)   = \$821
# 10 \$50,000 X 1.469 (n=5, i=8%)  = \$73,450

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
# 13 \$40,000 X 0.452 (n=7, i=12%)  = \$18,080
# 14 a) PV OF CONTRACT OVER 10 YRS \$35,000  X 6.145 (n=10, i=10%)  = \$215,075  a) PV OF CONTRACT DEFERRED 2 YRS

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: • \$35,000 X 6.145 (n=10, i=10%) = \$215,075 • \$215,075 X 0.826 (n=2, i=10%) = \$177,652 a) PV OF CONTRACT OVER 10 YRS BEG OF YR • \$35,000 X 5.759 (n=9, i=10%) = \$201,565 + \$35,000 • =\$236,565 # 19 PV @ \$10,00 TODAY • = \$10,000 PV @ \$2,00 /YR 8 YRS • \$2,000 X 5.146 (n=8, i=11%) = \$10,292 PV OF \$24,000 END OF 8 YRS • \$24,000 X 0.434 (n=8, i=11%) = \$ 10,416 PV @ \$2,00 /YR 8 YRS • \$2,000 X 4.968 (n=8, i=12%) = \$9,936 PV OF \$24,000 END OF 8 YRS • \$24,000 X 0.404 (n=8, i=12%) = \$9,696...
View Full Document

{[ snackBarMessage ]}

Page1 / 8

4.8 - • \$35,000 X 6.145(n=10 i=10 = \$215,075 • \$215,075...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online