{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

fin315assignment2solution

fin315assignment2solution - Finance 315 Hw 2 solutions...

This preview shows page 1. Sign up to view the full content.

Finance 315: Hw 2 solutions Spring 2011 1a) FV = 8400 (1 + 0.055) 4 = 10,406.13, or 8400 PV, 5.5 I/YR, 4N, FV = 10406.13 1b) FV = 8400 [ 1 + (0.055/12)] 4x12 = 10,461.78 or 8400 PV, (5.5/12) I/YR, 48 N, FV = 10,461.78 If your HP 10BII calculator is set on 12 p/yr, 8400 PV, 5.5 I/YR, 4 [gold shift] N, FV = 10,461.78 2) 10,199.23 = 3000 (1+i) 15 or 10199.23 FV, -3000 PV, 15N, I/YR = 8.50% 3.3997 = (1+i) 15 (3.3997) 1/15 -1 = i 0.085 = 8.50% = i 3) With the HP calculator: [gold shift] [begin] to put the calculator in annuity due mode since the payments occur at the beginning of each year. Then, 8 I/YR, 5000 PMT, 25N, FV = 394,772.08. Or 4) a) With the HP calculator, set the calculator on 12 p/yr. 12 [gold shift][p/yr] then [gold shift] [C] 144000 PV, 6.9 I/YR, 30 [gold shift] N, PMT = 948.38. Now, let find part b) after you have PMT = 948.38, enter 1 [input] [gold shift] [amort] and hit the =. you will get the principal = 120.38, hit = again, the interest is 828.00 and hit = again, the remaining balance after the first payment is 143,879.62. To amortize payment 2, enter 2 [input] [gold shift] [amort] and hit the = sign 3 times.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}