44.
CFo$1,000,000
C01 $1,450,000
F01 1
C02 $1,900,000
F02 1
I = 7%
45.
Enter 360 .80($2,700,000) $13,400
N I/Y PV PMT FV
Enter 6.32% 12
NOM EFF C/Y
46.
Enter 4 13% $157,000
N I/Y PV PMT FV
Enter 4 $91,700 $157,000
N I/Y PV PMT FV
47.
Enter 15 9% $3,500
CHAPTER 6 – 2
N I/Y PV PMT FV
Enter 5 9% $28,212.41
N I/Y PV PMT FV
48.
Enter 84 6% / 12 $1,340
N I/Y PV PMT FV
Enter 96 10% / 12 $101,967.59
N I/Y PV PMT FV
Enter 96 10% / 12 $1,340
N I/Y PV PMT FV
49.
Enter 13 × 12 7.5%/12 $1,100
N I/Y PV PMT FV
50. PV@ Time = 14: $5,200 / .041 = $126,829.27
Enter 7 4.1% $126,829.27
N I/Y PV PMT FV
51.
Enter 12 $25,000 $2,427.08
N I/Y PV PMT FV
Enter 29.18% 12
NOM EFF C/Y
52. Monthly rate = .08 / 12 = .00667; semiannual rate = (1.00667)6 – 1 = 4.067%
Enter 10 4.067% $7,100
CHAPTER 6 – 3
N I/Y PV PMT FV
Enter 8 4.067% $57,395.02
N I/Y PV PMT FV
Enter 12 4.067% $57,395.02
N I/Y PV PMT FV
Enter 18 4.067% $57,395.02
N I/Y PV PMT FV
53.
a.
Enter 5 7.9% $15,800
N I/Y PV PMT FV
Enter 5 7.9% $15,800
N I/Y PV PMT FV
b.
Enter 5 7.9% $15,800
N I/Y PV PMT FV
54. 2nd BGN 2nd SET
Enter 60 6.4% / 12 $68,000
N I/Y PV PMT FV
57. Pre-retirement APR:
Enter 10% 12
NOM EFF C/Y
CHAPTER 6 – 4
Enter 7% 12
NOM EFF C/Y
Enter 300 6.78% / 12 $20,000 $2,000,000
N I/Y PV PMT FV
Enter 120 9.57% / 12 $2,500
N I/Y PV PMT FV
Each month between years 10 and 30, he needs to save:
Enter 240 9.57% / 12 $124,659.64 $3,253,994.84
N I/Y PV PMT FV
58. PV of purchase:
Enter 36 6% / 12 $19,000
N I/Y PV PMT FV
Solve for $15,877.25
PV of lease:
Enter 36 6% / 12 $469
N I/Y PV PMT FV
Solve for $15,416.51
You would be indifferent when the PV of the two cash flows are equal. The present value of the
Enter 36 6% / 12 $15,383.49
N I/Y PV PMT FV
59.
CHAPTER 6 – 5
Enter 4.8% 365
NOM EFF C/Y
Solve for 4.92%
CFo$6,500,000
C01 $5,100,000
F01 1
C02 $5,600,000
F02 1
New contract value = $41,118,705.53 + 2,000,000 = $43,118,705.53
Enter 24 1.207% $33,118,705.53
N I/Y PV PMT FV
60.
Enter 1 $21,650 $25,000
N I/Y PV PMT FV
61.
Enter 8% 12
NOM EFF C/Y
Enter 12 7.72% / 12 $43,000 / 12
N I/Y PV PMT FV
Enter 1 8% $44,554.76
N I/Y PV PMT FV
Solve for $48,119.14
CHAPTER 6 – 6
Enter 12 7.72% / 12 $46,000 / 12
N I/Y PV PMT FV
Enter 60 7.72% / 12 $51,000 / 12
N I/Y PV PMT FV
62.
Enter 1 $9,800 $10,800
N I/Y PV PMT FV
63.
Enter 1 $9,700 $11,200
N I/Y PV PMT FV
64.
Enter 30 × 12 4% / 12 200,000
N I/Y PV PMT FV
Enter 30 × 12 3.75% / 12 $954.83
N I/Y PV PMT FV
65.
Enter 30 × 12 4% / 12 200,000
N I/Y PV PMT FV
Enter (30 – 8) × 12 3.75% / 12 $954.83
N I/Y PV PMT FV
Enter 8 × 12 3.75% / 12 $954.83 $167,460.95
N I/Y PV PMT FV
66. Refundable fee: With the $3,900 application fee, you will need to borrow $233,300 to have
$230,000 after deducting the fee. Solve for the payment under these circumstances.
Enter 30 12 4.8% / 12 $233,900
CHAPTER 6 – 7
N I/Y PV PMT FV
Enter 30 12 $230,000 $1,227.19
N I/Y PV PMT FV
Enter 4.95% 12
NOM EFF C/Y
Enter 4.80% 12
NOM EFF C/Y
67.
Enter 36 $1,000 $43.92
N I/Y PV PMT FV
Enter 32.66% 12
NOM EFF C/Y
68. What she needs at age 65:
Enter 20 7% $105,000
N I/Y PV PMT FV
a.
Enter 30 7% $1,112,371.50
N I/Y PV PMT FV
b.
Enter 30 7% $1,112,371.50
N I/Y PV PMT FV
c.
Enter 10 7% $175,000
N I/Y PV PMT FV
CHAPTER 6 – 8
At 65, she is short: $1,112,371.50 – 344,251.49 = $768,120.01
Enter 30 7% $768,120.01
N I/Y PV PMT FV
Her employer will contribute $3,500 per year, so she must contribute:
69. Without fee:
Enter 18.6% / 12 $12,000 $225
N I/Y PV PMT FV
Enter 9.2% / 12 $12,000 $225
N I/Y PV PMT FV
With fee:
Enter 9.2% / 12 $12,240 $225
N I/Y PV PMT FV
70. Value at Year 6:
Enter 5 9% $700
N I/Y PV PMT FV
Enter 4 9% $700
N I/Y PV PMT FV
Enter 3 9% $800
N I/Y PV PMT FV
Enter 2 9% $800
N I/Y PV PMT FV
CHAPTER 6 – 9
Enter 1 9% $900
N I/Y PV PMT FV
Solve for $981
At Year 65, the value is:
Enter 59 6% $5,932.65
N I/Y PV PMT FV
71.
Enter 30 12 5.2% / 12 $1,950,000
N I/Y PV PMT FV
Enter 22 12 5.2% / 12 $10,707.66
N I/Y PV PMT FV
72.
CFo$15,000
C01 $15,000
77.
a. APR = 7.5% 52 = 390%
Enter 390% 52
NOM EFF C/Y
b.
Enter 1 $9.25 $10.00
N I/Y PV PMT FV
Solve for 8.11%
Enter 421.62% 52
NOM EFF C/Y
CHAPTER 6 – 10
c.
Enter 4 $66.45 $25
N I/Y PV PMT FV
Enter 968.19% 52
NOM EFF C/Y