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Student Name:
Class:
Yearly Time Interest
Cash Flow Period Rate *Factor PVA PV
Years 1-5 70,000$ 5 8% 3.99271 279,490$
Years 6-10 70,000 5 10% 3.79079 265,355
Problem 06-05
McGraw-Hill/Irwin
Instructor
Estimated Cash Flows
CLAUSSEN PURCHASE
70,000$
CLAUSSEN PURCHASE
Given Data P06-05:
Anticipated cash flows per year for 20 years
Student Name:
Class:
Part 1:
30,000 =0.5 *
Part 2:
Part 3:
Problem 06-06
McGraw-Hill/Irwin
Instructor
SAM ROBINSON
JOHN JAMISON
JASMINE TEA COMPANY
Part 1:
60,000$
Part 2:
Part 3:
10,000$
Given Data P06-06:
Amount borrowed
Amount needed to accumulate
JOHN JAMISON
JASMINE TEA COMPANY
SAM ROBINSON
Student Name:
Class:
Time Interest Annuity Annuity
PVA Period Rate *Factor Amount Calculation
Part 1 250,000$ 4 10% 3.16987 78,868$ Payment
Part 2 250,000$ 5 8% 3.99271 62,614$ Payment
Problem 06-07
McGraw-Hill/Irwin
Instructor
Calculations
THE LOWLIFE COMPANY
250,000$
10%
4
Part 1:
Amount of loan
Given Data P06-07:
LOWLIFE COMPANY
Number of payments
Interest rate
Student Name:
Class:
Date of *Deferred PV of
Annual First Time Interest Annuity Pension
Employee Payment Payment Periods Rate Factor Obligations
PV *FV FV
as of Time Interest Annuity as of
Employee 12/31/2011 Period Rate Factor 12/31/2014
Tinkers 116,725$ 3 11% 1.36763 159,637$ «- Correct!
Instructor
Requirement 2:
Requirement 1:
December 31, 2019
Pension Obligations as of
as of December 31, 2016
Pension Obligations
HORIZON DISTRIBUTING COMPANY
Problem 06-14
McGraw-Hill/Irwin
15
Date of
Annual First
Employee Payment Payment
20,000$ 12/31/2019
Given Data P06-14:
HORIZON DISTRIBUTING COMPANY
Life expectancy beyond retirement
Tinkers
