46. PV@ t = 14: $2,150 / .056 = $38,392.86
47.
Enter 12 $23,000 $2,242.50
N I/Y PV PMT FV
Solve for 2.502%
48. Monthly rate = .11 / 12 = .0092; semiannual rate = (1.0092)6 – 1 = 5.63%
Enter 10 5.63% $6,175
N I/Y PV PMT FV
Solve for $46,261.30
49.
a.
Enter 5 7.5% $16,250
N I/Y PV PMT FV
b.
Enter 5 7.5% $16,250
N I/Y PV PMT FV
50. 2nd BGN 2nd SET
51. 2nd BGN 2nd SET
52. PV of college expenses:
Enter 4 8.4% $65,000
N I/Y PV PMT FV
Cost today of oldest child’s expenses:
Cost today of youngest child’s expenses:
Enter 16 8.4% $213,385.24
N I/Y PV PMT FV
Enter 15 8.4% $127,692.77
N I/Y PV PMT FV
54. Option A:
Aftertax cash flows = Pretax cash flows(1 – tax rate)
Aftertax cash flows = $250,000(1 – .28)
Aftertax cash flows = $180,000
2ND BGN 2nd SET
2ND BGN 2nd SET
56.
Enter 5 × 12 7.2% / 12 $32,000
N I/Y PV PMT FV
Solve for $636.66
Enter 34 7.2% / 12 $636.66
N I/Y PV PMT FV
57. Pre-retirement APR:
Enter 11% 12
NOM EFF C/Y
Post-retirement APR:
Enter 8% 12
At retirement, he needs:
Enter 240 7.72% / 12 ±$20,000 $1,500,000
In 10 years, his savings will be worth:
Solve for $442,239.69
After purchasing the cabin, he will have: $442,239.69 – 350,000 = $92,239.69
Each month between Years 10 and 30, he needs to save:
Solve for –$2,497.96
58. PV of purchase:
Solve for $14,205.96
$28,000 – 14,205.96 = $13,794.04
PV of lease:
Solve for $12,490.99
$12,490.99 + 2,400 = $14,890.99
Buy the car.
You would be indifferent when the PV of the two cash flows are equal. The present value of the
Solve for $15,687.30
59.
Enter 5.7% 365
CFo$8,500,000
C01 $3,900,000
F01 1
F04 1
C05 $6,400,000
F05 1
Enter 24 1.435% $28,071,651.95
N I/Y PV PMT FV
60.
Enter 1 $16,860 $20,000
61.
Enter 7.8% 12
NOM EFF C/Y
Solve for 7.53%
Enter 1 7.8% $38,304.81
N I/Y PV PMT FV
Solve for $41,292.59
62.
Enter 1 $9,700 $10,800
N I/Y PV PMT FV
63. Refundable fee: With the $2,900 application fee, you will need to borrow $227,900 to have
$225,000 after deducting the fee. Solve for the payment under these circumstances.
Enter 30 12 5.60% / 12 $227,900
N I/Y PV PMT FV
Solve for $1,308.33
Enter 5.72% 12
NOM EFF C/Y
64.
Enter 36 $1,000 $44.95
N I/Y PV PMT FV
Solve for 2.87%
APR = 2.87% 12 = 34.49%
65. Without fee:
Enter 18.6% / 12 $10,000 $225
N I/Y PV PMT FV
Enter 8.2% / 12 $10,200 $225
N I/Y PV PMT FV
66. Value at Year 6:
Enter 4 11% $500
N I/Y PV PMT FV
Solve for $759.04
Enter 2 11% $700
N I/Y PV PMT FV
Solve for $862.47
At Year 65, the value is:
Enter 59 7% $4,904.11
N I/Y PV PMT FV
67. Effective six-month rate = (1 + Daily rate)180 – 1
Effective six-month rate = (1 + .09/360)180 – 1
Effective six-month rate = .0460 or 4.60%
Enter 40 4.60% $1,600,000
N I/Y PV PMT FV
Solve for $29,017,924.95
68.
CFo$11,000
C01 $11,000
72.
a. APR = 6.5% 52 = 338%
b.
Enter 1 $9.35 $10.00
Enter 361.50% 52
c.
Enter 4 $71.35 $25
N I/Y PV PMT FV
Enter 780.88% 52
NOM EFF C/Y
