Professional Documents
Culture Documents
HW
HW
PV
FV
PMT
R
N
Pmts / Yr
B
PV
FV
PMT
R
N
Pmts / Yr
1,000.00
$1,400.00
0
0.04
10
1
1,000.00
$1,480.24
0
0.04
10
1
A
PV
FV
PMT
R
N
Pmts / Yr
$400.00
$1,000.00
0
0.04
23.3624189
1
B
PV
FV
PMT
R
N
Pmts / Yr
$400.00
$1,000.00
0
0.08
11.9059035
1
C
PV
FV
PMT
R
N
Pmts / Yr
$400.00
$1,000.00
0
0.16
6.17363361
1
A
PV
FV
PMT
R
N
Pmts / Yr
1,000
$1,790.85
$0.00
0.06
10
0
B
PV
FV
PMT
R
N
Pmts / Yr
1,000
$2,593.74
$0.00
0.1
10
0
A
PV
FV
PMT
R
N
Pmts / Yr
(2,722,333)
4000000
0
0.08
5
B
The property investment is not attractive because it's less than the actual price paid of $3 million.
C
C) PV of the Annuity= $798542.01
PV=
$2,722,333+$798542.01
$3,520,875.01
Yes, my answer would change because this greater than price paid of $3 million.
paid of $3 million.
QB #1
$11,372,360.31
QB #2
$7,581,573.54
$11,581,573.54
$7,721.73
$8,303.73 The second option at the interest rate of 5% would be preferred.
$4,192.47 The first option at the interest rate of 20% would be preferred.
$3,740.38
A
$267.30
B
$252.17
$77,217.35
A) Leasing
B)
C)
$38,132.32
It is cheaper to lease because the cost to buy the truck would be $40,000.
$40,801.58
In this case of an annuity due, it is cheaper to buy.
Monthly PMT
$599.55
$79,074.65
A) Calculate PV of annuity
$320,243.29
$558.14
B) College Education
$603,759.41
1.062961
1.0616778
First National Bank offers a higher effective interest rate as shown above with 1.062.
ncrease is $818.18.