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52. Monthly rate = .08/12 = .00667; semiannual rate = (1.00667)6 – 1 = 4.067%
Enter 10 4.067% $5,900
N I/Y PV PMT FV
Solve for $47,694.45
53.
a.
Enter 5 6.8% $13,500
N I/Y PV PMT FV
b.
Enter 5 6.8% $13,500
N I/Y PV PMT FV
54. 2nd BGN 2nd SET
57. Pre-retirement APR:
At retirement, he needs:
In 10 years, his savings will be worth:
Each month between Years 10 and 30, he needs to save:
58. PV of purchase:
PV of lease:
Enter 36 6%/12 $505
N I/Y PV PMT FV
Solve for $16,599.86
Buy the car.
You would be indifferent when the PVs of the two cash flows are equal. The present value of the
Enter 36 6%/12 $22,100.14
N I/Y PV PMT FV
59.
CFo$8,400,000
C01 $4,700,000
F01 1
F06 1
New contract value = $39,163,973.29 + 2,000,000 = $41,163,973.29
60.
61.
Enter 6.5% 12
NOM EFF C/Y
Solve for 6.31%
62.
Enter 1 $9,800 $10,980
N I/Y PV PMT FV
63.
Enter 1 $9,700 $11,200
N I/Y PV PMT FV
64.
Enter 30 × 12 4.3%/12 225,000
N I/Y PV PMT FV
65.
66. Refundable fee: With the $4,300 application fee, you will need to borrow $279,300 to have
$275,000 after deducting the fee. Solve for the payment under these circumstances.
Enter 30 12 5.1%/12 $279,300
N I/Y PV PMT FV
67.
Enter 36 $1,000 $44.83
N I/Y PV PMT FV
Solve for 2.86%
69. Without fee:
Enter 17.5%/12 $15,000 $250
N I/Y PV PMT FV
Solve for 143.63
At Year 65, the value is:
N I/Y PV PMT FV
Solve for $328,996.36
The policy is not worth buying; the future value of the deposits is $328,996.36 but the policy
contract will pay off $300,000.
71.
N I/Y PV PMT FV
Solve for $12,904.11
77.
NOM EFF C/Y
b.
Enter 1 $9.32 $10.00
N I/Y PV PMT FV
NOM EFF C/Y
c.
Enter 4 $69.90 $25
N I/Y PV PMT FV
Solve for 16.04%
Enter 834.03% 52
NOM EFF C/Y
