CH6 Extra Exercises

Determine the future value of the following single amounts: No. of Periods Invested Amount Interest Rate $15,000 6% 12 1. 2. 20,000 10 3. 30,000 12 20 50,000 4 12 4.

A saving account earns compound interest at an annual effective interest rate i. Given that d12,41 = 0.08, Find i1,51- %3D

Simple Interest: I = Prt Simple Interest Future Value: FV = : P(1+rt) Compound Interest: FV = P(1+)nt Annual Yield: APY (1+ 5)" – 1 (1+)nt – 1 Ordinary Annuity (payments due at the end of each period): FV, = pymt · Annuity Due (payments due in the beginning of each period): FV4= pymt · (1+5)nt – 1 (1+5) r. n Present Value of Annuity: P(1+)nt = FV (annuity) (1+ 5)nt – 1 Simple Interest Amortized Loan: pymt- P(1+)n (1+ 5)nt – 1 Simple Interest Amortized Loan Unpaid Balance (after t years): P(1+5)nt – pymt- (1+ 5)nt – 1 Payout Annuity: P(1+)nt = pymt · n (1+c 1- 1+r Payout Annuity with COLA: P pymt · r - c

Janine is 35 and has a good job at a biotechnology company. Janine estimates that she will need $899,000 in her total retirement nest egg by the time she is 65 in order to have retirement income of $27,500 a year. (She expects that Social Security will pay her an additional $17,000 a year.) She currently has $4,000 in an IRA, an important part of her retirement nest egg. She believes her IRA will grow at an annual rate of 9 percent, and she plans to leave it untouched until she retires at age 65. How much money will Janine have to accumulate in her company's 401(k) plan over the next 30 years in order to reach her retirement income goal? Use Exhibit 1-A. (Round time value factor to 3 decimal places. Round intermediate and final answer to 2 decimal places.) 401(k) accumulation

A4

3.16 Supposed v(t) = 20/(20 + t). Assuming that future payment earn the forward rates of interest, calculate the value at time 2 of the following stream of payments:

What is the net present worth of the cash flow series below at an interest rate of 9% End of Period Cash Flow End of Period Cash Flow -P100k 5 -P300k 1 -P150k -P250k 2 -P200k 7 -P200k -P250k 8 -P150k 4 -P300k -P100k Select one: O -P1,246k O -P1,027k O -P1,127k O -P1,386k 9,

TABLE 9C.2 Present Value of Annuity of $1, p = [1-1/(1+]/i 3.25% 3.5% 1 2 3 4 5 6 7 6.5982 6.5346 8 7.4859 7.4051 7.4051 7.3255 7.2472 9 8.3605 8.2605 8.1622 8.0657 9.2222 9.1012 8.9826 8.8662 10 11 12 13 14 15 Periods 1.5% 1.75% 2% 2.25% 2.5% 2.75% 3% 0.9852 0.9828 0.9804 0.9780 0.9756 0.9732 0.9709 0.9685 0.9662 1.9559 1.9487 1.9416 1.9345 1.9274 1.9204 1.9135 1.9066 1.8997 2.9122 2.8980 2.8839 2.8699 2.8560 2.8423 2.8286 2.8151 2.8016 3.8544 3.8309 3.8077 3.7847 3.7620 3.7394 3.7171 3.6950 3.6731 4.7826 4.7479 4.7135 4.6795 4.6458 4.6126 4.5797 4.5472 4.5151 5.6972 5.6490 5.6014 5.5545 5.5081 5.4624 5.4172 5.3726 5.3286 6.4720 6.4102 6.3494 6.2894 6.2303 6.1720 6.1145 7.1701 7.0943 7.0197 6.9462 6.8740 7.9709 7.8777 7.7861 7.6961 7.6077 8.7521 8.6401 8.5302 8.4224 8.3166 10.0711 9.9275 9.7868 9.6491 9.5142 9.3821 9.2526 9.1258 9.0016 10.9075 10.7395 10.5753 10.4148 10.2578 10.1042 9.9540 9.8071 9.6633 11.7315 11.5376 11.3484 11.1636 10.9832 10.8070 10.6350 10.4669 10.3027 12.5434…

Hh1. Account

Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to '0' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount / (−) premium amortized. Round intermediate and final answers to the nearest whole dollar.) Date 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 Interest expense Bonds payable Interest payment Issuance of bonds Payment of bonds Bond Payment Schedule Interest Expense Cash Payment $ 100,000 100,000 100,000 Amortization of Premium 2. What amounts will be reported on the financial statements…

acc2

Solve for the unknown interest rate in each of the following: (Do 2 decimal places.) Present Value Years $ 310 4 430 18 19 25 39,700 38,961 Interest Rate olo oo oo Future Value 388 $ 1,430 186,082 538,618

How do i do this?

A4 please help......

None

Hh3.

Pls help fast sir pls with explanation also

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $4,800,000, and it would be depreciated straight-line to zero over four years. Because of radiation contamination, it actually will be completely valueless in four years. You can lease it for $1,430,000 per year for four years. Assume that the tax rate is 21 percent. Suppose the entire $4,800,000 purchase price of the scanner is borrowed. The rate on the loan is 8 percent, and the loan will be repaid in equal annual installments. Calculate the amount of annual loan repayment. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Payment Complete the schedules given below and calculate the NAL. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Amortization Year…

Subject:

Using provided data, solve for interest rate. Use the N value when looking up the factor in the tables. Do NOT use the annual values. Round the factor to four decimal places. Enter the interest rate as a percentage. Do not enter the interest rate as a decimal.