Nidhi_Patel_Chapter 4 Homework
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Finance
Date
Feb 20, 2024
Type
xlsx
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13
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PROBLEM (1-4)
TVM MULTIPLE UNEVEN
YEAR
CASH FLOW
r
1
$ 500.00 8%
2
$ 1,000.00 3
$ 2,000.00 4
$2,907.97 5
YR OF LAST CASH FLOW
3
FV
$3,663.20 PV
$2,907.97 TVM ANNUITY
PMT
100
YEARS
15
RATE
10.00%
FVA
$3,177.25 PVA
$760.61 (1) You plan the following deposits into your bank account : $500 next year, $1,000 the following year and $2,
time deposit would you need to support the indicated withdrawals? Enter the rate, the cash flows and the ans
displayed as positive values.
(2) If the withdrawals in Question 1 were deposits instead and you could earn 8% per year, what would your b
displayed as a positive value.
(3) If you were to make annual deposits of $100 over the next 15 years earning 10% per year, what would you
appropriate cells in column B and set this up so that your answer is displayed as a positive value.
(4) If you wanted to make annual withdrawals of $100 over the next 15 years, earning 10% per year, what one
question #3 and set this up so that your answer is displayed as a positive value.
,000 the year after that. If you can earn an annual rate of return of 8%, what one-
swer in the indicated cells in column B. Be sure that all dollar figures in column B are balance be immediately after your last deposit? Be sure that your answer is ur balance be immediately after making your final deposit? Enter the inputs into the e-time deposit would you need to make today? Use the inputs from column B from
97609
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PROBLEM (5-6)
(6) For the loan in #5, prepare the first two monthly payment rows of the amortization table.
LOAN AMOUNT
$ 250,000.00 TERM OF LOAN N YEARS
30.00
ANNUAL INTEREST RATE
6.00%
TERM OF LOAN IN MONTHS
360.00
MONTHLY INTEREST RATE
0.50%
FIXED LOAN PAYMENT (ANNUAL)
$18,162.23 FIXED LOAN PAYMENT (MONTHLY)
$1,513.52 AMORTIZATION TABLE
PAYMENT
BEGINNING BALANCE
FIXED PAYMENT
1
$ 250,000.00 $1,513.52 2
$ 249,736.48 $1,513.52 (5) Assume a 30-year mortgage loan for $250,000 for 30 years at an annual rate of 6%. What would be your that your answers are displayed as positive values. Round all values to two places after the decimal point.
INTEREST
PRINCIPAL
ENDING BALANCE
$ 1,250.00 $263.52 $ 249,736.48 $ 1,248.68 $264.84 $ 249,471.64 fixed annual and monthly payments? Enter the inputs into the appropriate cells in column B and set this up so
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PROBLEM (7-9)
ANNUAL WITHDRAWALS
$100,000 RETIREMENT PERIOD (YEARS)
20.00
RATE (%)
7.00%
ANSWER #7
$25,841.90 RETIREMENT TARGET GOAL
$ 2,000,000.00 RATE
5.00%
WORKING YEARS
35.00
ANSWER #8
$22,143.41 RETIREMENT NEST EGG
$ 1,500,000.00 YEARS OF RETIREMENT
25.00
RATE (%)
6.00%
ANSWER #9
$27,340.08 (7) You want to be able to make annual withdrawals of $100,000 during your 20-year retirement period. If you can
column B and set this up so that your answers are displayed as positive values.
(8) It's been determined that you need to have $2 million by the time you retire. If you can earn 5% per year, how m
and make sure that your answer is displayed as a positive value.
(9) Assume that you have accumulated $1.5 million by the time that you retire and you can earn 6% per year. Wha
from this question into the relevant cells in column B and make sure that your answer is displayed as a positive valu
n earn 7% per year, what amount do you need at the beginning of your retirement period? Enter the in
much must you save or invest each year of your 35-year working life? Enter the values from this questi
at size equal annual withdrawals could you make during your retirement just leaving you with a zero ba
ue.
nputs into the appropriate cells in tion Iinto the relevant cells in column B alance after 25 years? Enter the values
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97609
Questions
Score
Data in cell(s): B11, in worksheet: Problem 1-4
1
Data in cell(s): B12, in worksheet: Problem 1-4
1
Data in cell(s): B13, in worksheet: Problem 1-4
1
Data in cell(s): B14, in worksheet: Problem 1-4
0
Data in cell(s): B15, in worksheet: Problem 1-4
0
Data in cell(s): C11, in worksheet: Problem 1-4
1
Data in cell(s): B18, in worksheet: Problem 1-4
0
Data in cell(s): B19, in worksheet: Problem 1-4
0
Data in cell(s): B27, in worksheet: Problem 1-4
1
Data in cell(s): B28, in worksheet: Problem 1-4
1
Data in cell(s): B29, in worksheet: Problem 1-4
1
Data in cell(s): B31, in worksheet: Problem 1-4
1
Data in cell(s): B32, in worksheet: Problem 1-4
1
Data in cell(s): B8, in worksheet: Problem 5-6
1
Data in cell(s): B9, in worksheet: Problem 5-6
1
Data in cell(s): B10, in worksheet: Problem 5-6
1
Data in cell(s): B11, in worksheet: Problem 5-6
1
Data in cell(s): B12, in worksheet: Problem 5-6
1
Data in cell(s): B13, in worksheet: Problem 5-6
1
Data in cell(s): B14, in worksheet: Problem 5-6
0
Data in cell(s): B18, in worksheet: Problem 5-6
1
Data in cell(s): C18, in worksheet: Problem 5-6
0
Data in cell(s): D18, in worksheet: Problem 5-6
1
Data in cell(s): E18, in worksheet: Problem 5-6
0
Data in cell(s): F18, in worksheet: Problem 5-6
1
Data in cell(s): B19, in worksheet: Problem 5-6
1
Data in cell(s): C19, in worksheet: Problem 5-6
0
Data in cell(s): D19, in worksheet: Problem 5-6
1
Data in cell(s): E19, in worksheet: Problem 5-6
0
Data in cell(s): F19, in worksheet: Problem 5-6
0
Data in cell(s): B12, in worksheet: Problem 7-9
1
Data in cell(s): B13, in worksheet: Problem 7-9
1
Data in cell(s): B14, in worksheet: Problem 7-9
1
Data in cell(s): B15, in worksheet: Problem 7-9
0.5
Data in cell(s): B18, in worksheet: Problem 7-9
1
Data in cell(s): B19, in worksheet: Problem 7-9
1
Data in cell(s): B20, in worksheet: Problem 7-9
1
Data in cell(s): B21, in worksheet: Problem 7-9
1
Data in cell(s): B24, in worksheet: Problem 7-9
1
Data in cell(s): B25, in worksheet: Problem 7-9
1
Data in cell(s): B26, in worksheet: Problem 7-9
1
Data in cell(s): B27, in worksheet: Problem 7-9
0.5
Total Score
31
Max Points
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
42
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Feedback
Did you enter the correct value from the question?
Did you enter the correct value from the question?
Did you apply Formula #9 to each cash flow and then sum them up? Did you use the Excel NPV func
Did you solve for PMT using B8 as the PV and converting the number of years and the annual interest
Did you enter the correc fixed payment?
Did you subtract the interest payment from the fixed payment?
Does this represent the correct fixed payment?
Did you subtract the interest payment from the fixed payment?
Did you subtract the principal part of the fixed payment from the beginning balance for this period?
Did you solve for the PV of the annual withdrawals during retirement?
Did you solve for PMT using B24 as the PV?
73.8095%
then use it with either Formula #8 or in the Excel FV function?
Related Questions
MND
arrow_forward
Vala
arrow_forward
Exercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4
Starr Company decides to establish a fund that it will use 3 years from now to replace an aging production facility. The company will
make a $110,000 initial contribution to the fund and plans to make quarterly contributions of $51,000 beginning in three months. The
fund earns 16%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1)
Note: Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the
nearest whole dollar.
What will be the value of the fund 3 years from now?
× Answer is complete but not entirely correct.
Table Values are Based on:
n =
i =
12
16% ☑
Present
Table Factor
Future Value
Value
Initial Investment
Periodic Investments
Future Value of Fund
$
110,000
1.7908 $
196,988 ×
51,000
6.8941 x
351,599 x
$
548,587
arrow_forward
Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:
arrow_forward
7
Present work in Excel
Consider the following:
Financed amount: $385,000
Cost of funds: 7.25% (interest rate)
30-year amortization
Calculate (round to nearest dollar):
Annual payment amount (this is monthly payment x 12 --- then rounded to nearest dollar)
Amount of 'Interest paid' during year 3 (rounded to nearest dollar)
Amount of 'Principal paid' during year 3 (rounded to nearest dollar)
arrow_forward
Grove Media plans to acquire production equipment for $845,000 that will be depreciated for tax purposes as follows: year 1,
$329,000; year 2, $189,000; and in each of years 3 through 5, $109,000 per year. A 10 percent discount rate is appropriate for this
asset, and the company's tax rate is 20 percent. Use Exhibit A.8 and Exhibit A.9.
Required:
a. Compute the present value of the tax shield resulting from depreciation.
b. Compute the present value of the tax shield from depreciation assuming straight-line depreciation ($169,000 per year).
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute the present value of the tax shield resulting from depreciation.
Note: Round PV factor to 3 decimal places.
Present value of the tax shield
arrow_forward
Finance question thanks
arrow_forward
st cent.
ist Co
llar table
Present Value of a Dollar Table
Period 1%
2%
5%
45
97087 96154 95238
99010
98522
98019 97561
94340 92993
89000
94260 92456 90703
98030 97066 96117 95181
97059 95632 34232 92860
83962
79383
96098
91514 8800 M6.384
88849 R5400) X2270 79209
86261 82193 78353 74726
73901
5
68058
6
94218 92385 90595
95147 92826 90573 88385
94205 91454 88797 86230
83748
79031 74622 70496 63017
7 93272 90101
87056 84127 81309 75992 71068
58349
85,349 82075
X3676
78941
92348 88771
91434
87459
20073 76642
90529 86167
82015
78120
74409
89632 84893
80426
76214
72242 64958
888745 XW639 78849
74356 70138
62460
87866 82401
60057
81185
57748
86135 79985
55526
48102
16
85282 78803
62317 53391 45811 39365
17 84438 77639
71416
37136 27027
18
76491
70016
35034
25005
82774 75361 68643
23171
81954 74247 67297
14964
60502 51337
43630
38739 49363
41552
57029
47464 39573 33051
55368 45639 37689 31180 21455
81143 73150 65978 595.39 53755 43883 35894 29416 19866
80340 72069 64684 SHONG 52189
34185…
arrow_forward
Discount rate:
6%
End of year:
1
2
4
Cash flows:
(20,000) $
5,000 $
5,000 $
5,000 $
5,000 $
5,000
What is the Net Present Value of the cash flows?
At what discount rate is the Net Present Value "0"?
Initial outlay:
5,000
Life of investment in years:
10
Amount to be received at end:
10,000
8
Rate of return:
Amount of loan:
2$
50,000
Annual payment:
2$
10,000
Interest rate:
8%
9.
How many years will it take to pay off the loan?
3.
%24
%24
%24
%24
arrow_forward
K
Find the amount of each payment into a sinking fund if $14,000 must be accumulated Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearest
cent
Click here to view part 1 of the Sinking Fund table.
Click here to view part 2 of the Sinking Fund table.
OA. $829.92
OB. $4,597 32
OC. $1,180.06
OD. $1,073.52
arrow_forward
Help pls thanks
arrow_forward
3.33
points
1
Exercise 5-2 (Algo) Future value; single amount (LO 5-2)
The four people below have the following investments.
Skipped
Invested
Amount
Interest
Rate
Compounding
Jerry
Elaine
$ 12,200
12%
Quarterly
15,200
10
Semiannually
eBook
George
Kramer
22,200
6
18,200
8
Annually
Annually
Print
References
Required:
1-a. Calculate the future value at the end of three years. (FV of $1. PV of $1. FVA of $1, and PVA of $1)
1-b. Who has the greatest investment accumulation?
Complete this question by entering your answers in the tabs below.
Req 1A
Req 1B
Who has the greatest investment accumulation?
Who has the greatest investment accumulation?
arrow_forward
aa.7
arrow_forward
K-
Compute the present value of an ordinary annuity that pays $19,000 per year for 12 years at 10%.
Present value of ordinary annuity of $1:
7%
8%
9%
10%
12%
7.499 7.139
6.805
6.495
5.938
7.943 7.536 7.161 6.814
6.194
8.358 7.904
7.487 7.103
6.424
8.745 8.244
6.628
9.108 8.559
6.811
11
12
13
14
15
A. $129,466
B. $134,957
C. $117,686
D. $228,000
7.786 7.367
8.061
7.606
arrow_forward
5-17 EFFECTIVE INTEREST RATE You borrow $85,000, the annual kan payments are $8.273.99
for 30 years. What interest rate are you being changed?
UNEVEN CASH FLOW STREAM
Find the present values of the following cash fkrw streams at 8% compounded annually,
5-18
arrow_forward
A single payment of $15,000 @ 5% for 8 years.
Please identify which table you used.
arrow_forward
Consider a loan of $8,000 charging interest at j12-6% with monthly payments of
$321.50 Calculate the missing amounts in the amortization table. Place the value for
A in the first answer box, B in the second and C in the third.
PMT Interest Principall Balance
8,000.00
1321.50 40.00 281.50 7,718.50
2 321.50
A
C
arrow_forward
g
arrow_forward
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Related Questions
- MNDarrow_forwardValaarrow_forwardExercise B-17 (Algo) Future value of an amount plus an annuity LO P2, P4 Starr Company decides to establish a fund that it will use 3 years from now to replace an aging production facility. The company will make a $110,000 initial contribution to the fund and plans to make quarterly contributions of $51,000 beginning in three months. The fund earns 16%, compounded quarterly. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round your "Table Factor" to 4 decimal places and final answers to the nearest whole dollar. What will be the value of the fund 3 years from now? × Answer is complete but not entirely correct. Table Values are Based on: n = i = 12 16% ☑ Present Table Factor Future Value Value Initial Investment Periodic Investments Future Value of Fund $ 110,000 1.7908 $ 196,988 × 51,000 6.8941 x 351,599 x $ 548,587arrow_forward
- Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:arrow_forward7 Present work in Excel Consider the following: Financed amount: $385,000 Cost of funds: 7.25% (interest rate) 30-year amortization Calculate (round to nearest dollar): Annual payment amount (this is monthly payment x 12 --- then rounded to nearest dollar) Amount of 'Interest paid' during year 3 (rounded to nearest dollar) Amount of 'Principal paid' during year 3 (rounded to nearest dollar)arrow_forwardGrove Media plans to acquire production equipment for $845,000 that will be depreciated for tax purposes as follows: year 1, $329,000; year 2, $189,000; and in each of years 3 through 5, $109,000 per year. A 10 percent discount rate is appropriate for this asset, and the company's tax rate is 20 percent. Use Exhibit A.8 and Exhibit A.9. Required: a. Compute the present value of the tax shield resulting from depreciation. b. Compute the present value of the tax shield from depreciation assuming straight-line depreciation ($169,000 per year). Complete this question by entering your answers in the tabs below. Required A Required B Compute the present value of the tax shield resulting from depreciation. Note: Round PV factor to 3 decimal places. Present value of the tax shieldarrow_forward
- Finance question thanksarrow_forwardst cent. ist Co llar table Present Value of a Dollar Table Period 1% 2% 5% 45 97087 96154 95238 99010 98522 98019 97561 94340 92993 89000 94260 92456 90703 98030 97066 96117 95181 97059 95632 34232 92860 83962 79383 96098 91514 8800 M6.384 88849 R5400) X2270 79209 86261 82193 78353 74726 73901 5 68058 6 94218 92385 90595 95147 92826 90573 88385 94205 91454 88797 86230 83748 79031 74622 70496 63017 7 93272 90101 87056 84127 81309 75992 71068 58349 85,349 82075 X3676 78941 92348 88771 91434 87459 20073 76642 90529 86167 82015 78120 74409 89632 84893 80426 76214 72242 64958 888745 XW639 78849 74356 70138 62460 87866 82401 60057 81185 57748 86135 79985 55526 48102 16 85282 78803 62317 53391 45811 39365 17 84438 77639 71416 37136 27027 18 76491 70016 35034 25005 82774 75361 68643 23171 81954 74247 67297 14964 60502 51337 43630 38739 49363 41552 57029 47464 39573 33051 55368 45639 37689 31180 21455 81143 73150 65978 595.39 53755 43883 35894 29416 19866 80340 72069 64684 SHONG 52189 34185…arrow_forwardDiscount rate: 6% End of year: 1 2 4 Cash flows: (20,000) $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 What is the Net Present Value of the cash flows? At what discount rate is the Net Present Value "0"? Initial outlay: 5,000 Life of investment in years: 10 Amount to be received at end: 10,000 8 Rate of return: Amount of loan: 2$ 50,000 Annual payment: 2$ 10,000 Interest rate: 8% 9. How many years will it take to pay off the loan? 3. %24 %24 %24 %24arrow_forward
- K Find the amount of each payment into a sinking fund if $14,000 must be accumulated Payments are made at the end of each quarter for 3 years, with interest of 6% compounded quarterly Round to the nearest cent Click here to view part 1 of the Sinking Fund table. Click here to view part 2 of the Sinking Fund table. OA. $829.92 OB. $4,597 32 OC. $1,180.06 OD. $1,073.52arrow_forwardHelp pls thanksarrow_forward3.33 points 1 Exercise 5-2 (Algo) Future value; single amount (LO 5-2) The four people below have the following investments. Skipped Invested Amount Interest Rate Compounding Jerry Elaine $ 12,200 12% Quarterly 15,200 10 Semiannually eBook George Kramer 22,200 6 18,200 8 Annually Annually Print References Required: 1-a. Calculate the future value at the end of three years. (FV of $1. PV of $1. FVA of $1, and PVA of $1) 1-b. Who has the greatest investment accumulation? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Who has the greatest investment accumulation? Who has the greatest investment accumulation?arrow_forward
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