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Finance Ch. 3 evens

# 06 x 6 c 300001 106 x06 2000000 106 x3 d 400001 106

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(1.06)^-x = -6 c) 30,000(1-(1.06)^-x/.06) = 2,000,000 -(1.06)^-x=3 d) 40,000(1-(1.06)^-x/.06)=2,000,000 (1.06)^-x=-2 26) a) PMT=-10,000 2,000,000=-10,000(1.06)^-x/.06 -12=(1.06)^-x n=43.10years b) PMT=-20,000 2,000000=-20,000(1.06)^-x/.06 -6=(1.06)^-x / n=32.54 years c) PMT=-30,000 2,000,000=-30,000 (1.06)^-x/.06 4=(1.06)^-x / n=26.83 years d) PMT=-40,000 2,000,000=-40,000(1.06)^-x/.06 PMT=23.05 years 28) FV=PMT(1+r)^-t/r a) 250,000=15,000(1+x)^-6/x 16.667=(1+x)^-6/x b) 250,000=15,000(1+x)^-8/x 16.667=(1+x)^-8/x c) 10 years

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250,000=15,000(1+x)^-10/x 16.667=(1+x)^-10/x d) 12 years 250,000=15,000(1+x)^-12/x 30) a) 250,000=150,000(1+x)^-7/x 16.667=(1+x)^-9/x b) 250,000=(1+x)^-9/x 15,000 16.667(1+x)^-9/x c) 250,000=15,000(1+x)^-11/x 16.667=(1+x)^-12/x d) 250,000=15,000(1+x)^-13 16.667=(1+x)^-13/x 32) PV=CF 1-/r-g r = CG 1-/P + g r = 1.75/35 + .11 = .05 + .11 = .16 = 16% 34) PV=PMT/r r=PMT/PV a) PV=75 r=12.50/75 = 1.667 = 16.77% b) PV=90 r=12.50/90 = .1389 = 13.89% c) PV=100 r=12.50/100 = .1250 = 12.50% d) PV=120 r=12.50/120 = .1042 = 10.42%
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06 x 6 c 300001 106 x06 2000000 106 x3 d 400001 106...

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