Chapter 6
Problems 1-75
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
Chapter 6
Question 1
Input area:
Output area:
Value today at 10% $3,188.05
Value today at 18% $2,659.98
Value today at 24% $2,348.92
Chapter 6
Question 2
Input area:
Output area:
Payment for X 5,200$
# of years for X 8
Payment for Y 7,300$
# of years for Y 5
Discount rate 5%
Discount rate 15%
Chapter 6
Question 3
Input area:
Output area:
Discount rate 8%
Discount rate 11%
Discount rate 24%
Chapter 6
Question 4
Input area:
Output area:
of 75 years 1,285.99$
Payment per year 6,100$
# of years 15
Required rate of return 6%
# of years 40
# of years 75
Chapter 6
Question 5
Input area:
Output area:
Initial investment 45,000$
Interest rate on annuity 6.25%
# of years 15
Chapter 6
Question 6
Input area:
Output area:
Annual savings 68,000$
# of years 7
Interest rate on annuity 8.5%
Chapter 6
Question 7
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Output area:
# of years 20
Interest rate on annuity 10.8%
# of years 40
Chapter 6
Question 8
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Output area:
Desired amount 75,000$
# of years 12
Interest rate 6.8%
Chapter 6
Question 9
Input area:
Output area:
Desired amount 60,000$
# of years 5
Interest rate 7.50%
Chapter 6
Question 10,11
Input area:
Output area:
Desired amount 30,000$
Interest rate 5.80%
Cost of policy 475,000$
Chapter 6
Question 12
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Output area:
Stated rate (APR) # of times per year Effective rate
Chapter 6
Question 13
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Output area:
Stated rate (APR) # of times per year Effective rate
Chapter 6
Question 14
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Output area:
Stated rate (APR) # of times per year Effective rate
Chapter 6
Question 15
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Output area:
The borrower is actually paying annualized interest of
15% per year, not the 13.98% reported on the loan contract.
Chapter 6
Question 16
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Output area:
# of years 19
Interest rate 7.9%
# of times compounded per year 2
Chapter 6
Question 17
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Output area:
Interest rate 6.70%
# of times compounded per year 365
# of years 5
# of years 10
# of years 20
Chapter 6
Question 18
Input area:
Output area:
Future value of investment 43,000$
# of years 10
Discount rate 7%
# of times compounded per year 365
Chapter 6
Question 19
Input area:
Output area:
Interest rate 27%
Compounding periods 12
Chapter 6
Question 20
Input area:
Output area:
Future value of investment 83,500$
Discount rate 6.5%
# of years 5
# of times compounded per year 12