Module 1 (Ch1,2)

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CUNY College of Staten Island *

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ECONOMIC H

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Finance

Date

Feb 20, 2024

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xlsx

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17

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Chapter 1- Example 5 Rate 10*(PW)/Highest Value or Worth A(PW) $25,000 Rate (A) 10.00 B(PW) $20,000 Rate(B) C(PW) $18,000 Rate (C ) WEIGHTED FACTOR COMPARISON FORM Company: Ajax Manufacturing Company Description of investment: Factor Wt A B C Rt Sc Rt Sc Rt Sc 1. Present worth 30 10.00 300.00 2. Product quality 40 8 320.00 10 5 3. Fill time, customer order 20 3 60.00 10 7 4. Supplier reputation 10 8 80.00 5 10 Totals 100 760.00 mdehghani: You do not need to change they type to percentage.
Intrest Rate 8% Using Simple Intrest Calculation Payments n Loan Amount Intrest Total 1st 1 $4,000.00 $0.00 2 $3,000.00 3 $3,000.00 4 $3,000.00 2nd $0.00 Using Compound Intrest Calculation Payments EOY Loan Amount Intrest Total 1st 1 $4,000.00 $0.00 . 2 $3,000.00 . 3 $3,000.00 . 4 $3,000.00 2nd $0.00 Payment Amount Payment Amount Robert borrows $4,000 from Susan and agrees to pay $1,000 plus accrued interest at the end of the first year and $3,000 plus accrued interest at the end of the fourth year. What should be the size of the payments if 8% simple interest is used? COMMENT BOX
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Intrest Rate 12% Using Equation Using future worth factor (Table) Using Exc EOY Loan Amount EOY Loan Amount EOY 0 $1,000.00 0 $1,000.00 0 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 Dia St. John borrows $1,000 at 12% compounded annually. The loan is to be repaid after 5 years. How m she repay in 5 years?
cel Loan Amount $1,000.00 much must
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Using Rule of 72 Intrest Rates 2% 3% 4% 6% 8% 12% Periods (n) 72/(rate *100) How long does it take for money to double in value, if you earn (a) 2%, (b) 3%, (c) 4%, (d) 6%, (e) 8%, or (f) 12% annual compound interest?
Using interest tables & interpolating Intrest Rates Periods (Y) FV factor (X) 12% 12% Interpolation (X=2) How long does it take for money to double in value, if you earn (a) 2%, (b) 3%, (c) 4% interest?
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%, (d) 6%, (e) 8%, or (f) 12% annual compound
Using Matematical Solution Intrest Rates Periods (n) 2% 35.003 Yrs 3% 23.450 Yrs 4% 17.673 Yrs 6% 11.896 Yrs 8% 9.006 Yrs 12% How long does it take for money to double in value, if you earn (a) 2%, (b) 3%, (c) 4%, 12% annual compound interest? 𝐹=𝑃 (1+𝑖) ^𝑛 2=1 ( money to double in v
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(d) 6%, (e) 8%, or (f) 𝑛= log2/log (1+𝑖) 1 (1+𝑖) ^𝑛 value
Using NPER Using Goal Seek Intrest Rates Periods (n) Intrest Rates Periods (n) FV Intrest Rates 2% 35.003 Yrs 2% 1.000 Yrs 2% 3% 23.450 Yrs 3% 1.000 Yrs 3% 4% 17.673 Yrs 4% 1.000 Yrs 4% 6% 11.896 Yrs 6% 1.000 Yrs 6% 8% 9.006 Yrs 8% 1.000 Yrs 8% 12% 12% 6.115 Yrs 12% How long does it take for money to double in value, if you earn (a) 2%, (b) 3%, (c) 4%, (d) 6%, (e) 8%, or (f) 12% annual compound interest?
Using Solver Periods (n) FV 35.003 Yrs 23.450 Yrs 17.673 Yrs 11.896 Yrs 9.006 Yrs 6.116 Yrs
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Intrest Rate 5% Using Equation Using future worth factor (Table) EOY Loan Amount EOY Loan Amount 0 0 1 1 2 2 3 3 4 $10,000.00 4 $10,000.00 How much must you deposit, today, in order to accumulate $10,000 in 4 years, if you earn 5% com 𝑃=𝐹/ (1+𝑖) ^𝑛
Using Excel EOY Loan Amount 0 1 2 3 4 $10,000.00 mpounded annually on your investment?