Chapter 6
Question 41
Input area:
Output area:
Monthly rate 0.710%
Price of sailboat 95,000$
Monthly payment 1,950$
Number of months 60
Chapter 6
Question 42
Input area:
Output area:
Present value of payments 220,361.04$
Remaining principal 69,638.96$
Number of years 30
Price of house 290,000$
Monthly payment 1,300$
Chapter 6
Question 43
Input area:
Output area:
PV of missing CF 2,290.50$
PV of cash flows 8,400$
Discount rate 9%
Chapter 6
Question 44
Input area:
Output area:
First payment 1,000,000$
Annual increase 600,000$
Discount rate 7%
Number of years 30
Percentage of pruchase price 80%
Price of warehouse 3,400,000$
Monthly payment 17,500$
Chapter 6
Question 46
Input area:
Output area:
Present value of sale 88,931.22$
Selling price 145,000$
# of years until sale 4
Production cost 81,000$
Discount rate 13.0%
Chapter 6
Question 47
Input area:
Output area:
PV at beginning of payments 30,424.32$
Discount rate 10%
Year of first payment 6
Year of last payment 20
Chapter 6
Question 48
Input area:
Output area:
Value today of interest rate 1 payments 105,414.17$
Monthly payment 1,750$
# of years 15
Interest rate 1 10%
# of years 7
Interest rate 2 6%
# of years 8
Chapter 6
Question 49
Input area:
Output area:
Future value of investment A 394,352.43$
Investment A:
# of years 13
Monthly payment 1,500$
Interest rate 7.50%
Investment B:
# of years 13
Interest rate 7%
Chapter 6
Question 50
Input area:
Output area:
Value at year 14 65,957.45$
Interest rate 4.7%
Year to find value 7
Amount of payment 3,100$
Year of first perpetual payment 15
Chapter 6
Question 51
Input area:
Output area:
Monthly rate 2.502%
Quoted interest rate 17%
Interest per year 4,250$
Monthly payment 2,437.50$
Chapter 6
Question 52
Input area:
Output area:
Semiannual interest rate 4.067%
PV of annuity at year 9 64,670.44$
Effective annual rate 8.30%
# of years 5
Amount of semiannual payment 8,000$
# of years until first payment 9.50
Discount rate 8%
Compounding periods per year 12
Year to find present value 5
Year to find present value 3
Year to find present value –
Chapter 6
Question 53
Input area:
Output area:
# of years 5
Discount rate 8.4%
Chapter 6
Question 54
Input area:
Output area:
Value of lease contract 78,000$
# of months 60
Chapter 6
Question 55
Input area:
Output area:
Interest rate 8%
Chapter 6
Question 56
Input area:
Output area:
Interest rate 8%
Chapter 6
Question 57
Input area:
Output area:
Pre-retirement APR 9.57%
Retirement APR 6.78%
PV of retirement spending 3,462,595.74$
PV of inheritance 276,373.77$
Amount needed at retirement 3,738,969.51$
Savings value until cabin purchase 499,659.64$
Savings after cabin purchase 159,659.64$
FV of initial savings 1,074,110.23$
Retirement shortfall 2,664,859.28$
Years until retirement 30
Monthly retirement income 24,000$
Years in retirement 25
Years until cabin purchase 10
Cabin price 340,000$
Monthly savings for first years 2,500$
Pre-retirement EAR 10%
Retirement EAR 7%
Chapter 6
Question 58
Input area:
Output area:
PV of lease payments 16,501.64$
PV of resale price 19,219.83$
PV of purchase 15,780.17$
the car since the PV is lower.
Breakeven present value 18,498.36$
Years for lease 3
Car price 35,000$
Payment today 99$
Monthly lease payment 499$
Loan rate 6%
Resale price 23,000$