Chapter 6
Question 59
Input area:
Year
Output area:
PV of salary offer 40,234,108.52$
PV of salary with increase 42,234,108.52$
Effective quarterly interest rate 1.384%
Requested signing bonus 10,000,000$
Requested salary increase 2,000,000$
Interest rate 5.5%
Compunding periods 365
Chapter 6
Question 60
Input area:
Output area:
Amount received 21,750.00$
Amount of loan 25,000$
# of years 1
Chapter 6
Question 61
Input area:
Output area:
Value 1 year ago of salary 2
years ago 42,482.45$
Value today of salary 2 yrs ago 45,881.04$
Value today of last year’s salary 45,590.92$
Value of next 5 year’s salary 198,579.61$
Salary for 2 years ago 41,000$
Last year’s salary 44,000$
Future salary 48,000$
Years for future salary 5
Pain and suffering 100,000$
Court costs 20,000$
Chapter 6
Question 62
Input area:
Output area:
Amount of loan 10,000$
# of years 1
Chapter 6
Question 63
Input area:
Output area:
The effective rate is not affected by
the loan amount, since it drops out
when solving for R.
Amount of loan 10,000$
# of years 1
# of points 2%
Chapter 6
Question 64
Input area:
Output area:
Monthly payment $1,269.01
Monthly interest 0.4703%
Nonrefundable fee:
# of years 30
Amount of loan 220,000$
Interest rate 5.50%
Chapter 6
Question 65
Input area:
Output area:
Monthly interest 2.81%
It’s called add-on interest because the interest amount
Amount of loan 1,000$
# of years 3
Interest rate 17%
Future value factor 1.601613
Total repayment 1,601.61$
Monthly payment 44.49$
# of years until retirement 30
Annual withdrawal 125,000$
# of years to withdraw 20
Interest rate 7%
Employer contribution 3,500$
Trust fund distribution 175,000$
Years until distribution 20
Chapter 6
Question 67
Input area:
Output area:
# of months to pay off current card 129.56
# of months to pay of new card 71.88
Amount of bill with fees 12,240$
# of months with fees 73.89
Amount of debt 12,000$
Interest rate on current card 19.8%
Interest rate on new card 10.4%
Planned monthly payment 225$
Transfer fee 2%
Chapter 6
Question 68
Input area:
Year Payment
Output area:
Year Value at Year 6
Total value at year 6 6,460.81$
Value of deposits 3,646.96$
insurance company 2,605.80$
Difference today 1,041.16$
# of years until payout 65
Payout 250,000$
Interest rate 1 10%
# of years 6
Interest rate 2 7%
# of years 59
Chapter 6
Question 69
Input area:
Output area:
Monthly payment 12,957.67$
# of payments left after balloon payment 264
Amount of loan 1,800,000$
# of years 30
# of years until balloon payment 8
Chapter 6
Question 70
Input area:
Output area:
# of years 6
# of years 4
Chapter 6
Question 71
Input area:
Output area:
Plan X:
# of years In perpetuity
Plan Y:
# of years 15
Chapter 6
Question 72
Input area:
Output area:
Biannual payment 25,000$
Compunding periods 365
Chapter 6
Question 73
Input area:
Chapter 6
Question 74
Input area:
Output area:
PV of retirement value 110,474.64$
Amount to save next year 8,333.89$
Years until retirement 40
Next year’s salary 50,000$
Salary growth rate 3%
Investment return 10%
Desired retirement value 5,000,000$
Chapter 6
Question 75
Input area:
Output area:
Weekly interest rate 8%
# of weeks 1