Ch_06_HW_A_Solutions

Ch_06_HW_A_Solutions - Ch 06 HW A Solutions 1 - 4. 1 2 3 4...

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Ch 06 HW A Solutions 1 Ch 06 HW A Solutions 1 - 4. N I/Y PMT PV FV Answer 1 10 6.00% 2,500.00 ? 0.00 18,400.22 2 5 6.00% 5,000.00 ? 0.00 21,061.82 3 10 14.00% 2,500.00 ? 0.00 13,040.29 4 5 14.00% 5,000.00 ? 0.00 17,165.40 5. N I/Y PMT PV FV Answer 8 5.00% ? 0 70,000.00 7,330.53 6. N I/Y PMT PV FV Answer 10 6.50% ? $55,000.00 0.00 7,650.76 7 . EAR = (1 + i/m) m – 1 EAR = (1 + 0.070 / 12) 12 –1 Answer: 7.23% 8. EAR = (1 + i/m) m – 1 EAR = (1 + 0.070 / 2) 2 –1 Answer: 7.12% 9. EAR = (1 + APR/m) m – 1 0.080 = (1 + APR/365) 365 – 1 1.080 = (1 + APR/365) 365 (1.080) 1/365 = 1 + APR/365 (1.080) 0.002739726 = 1 + APR/365 1.000210874 = 1 + APR/365 0.000210874 = APR/365 APR = 0.076969155 Answer: 7.70%
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Ch 06 HW A Solutions 2 10. Monthly return = 1,000.00 / 100,000.00 Answer: 0.010000000 = 1.00% 11. APR is the interest charged per period multiplied by the number of periods per year APR = 0.010000000 * 12 Answer: 12.00% 12. EAR = (1 + APR/m)
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This note was uploaded on 11/29/2011 for the course FINANCE 332 taught by Professor Linney during the Fall '11 term at Guilford Tech.

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Ch_06_HW_A_Solutions - Ch 06 HW A Solutions 1 - 4. 1 2 3 4...

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