HOMEWORK -I-

14K TL 14K TL 14K TL 14K TL 14K TL

1)

1850 TL 1850 TL 1850 TL 1850 TL

70K TL

A = 14000 – 1850 = 12150 TL

P = 70000 TL
𝐴 12150
= = 0,1736
𝑃 70000
12150 = 70000(A/P , %10 , N)

From Interest Rates Tables:

N = 9 years

2) F10 + F = 0
𝑃 𝑃 𝑃
P0= −500 − 500. (𝐹 , 10% , 1) − 600. (𝐹 , 10% , 2) − 700. (𝐹 , 10% , 3) +
𝑃 𝑃
700. [(𝐴 , 10% , 6) . (𝐹 , 10%, 3)]

= -500 – 454,545 – 495.87 – 525,917 + 2290,505

= 314,173
𝐹
F9 = 314,173. (𝑃 , 10% , 9)

F9 = 740,805
𝐹
F10= 740,805. ( , 10% , 1)
𝑃

F10= 814,885

814,885 + F = 0

F = -814,885
3) P = P1 – P2
𝑃 𝑃 𝑃 𝑃 𝑃
P1 = 𝐴. (𝐴 , 𝑖% , 3) + 𝐴. (𝐴 , 𝑖% , 3) . (𝐹 , 𝑖% , 3) + 𝐴. (𝐴 , 𝑖% , 4) . (𝐹 , 10% , 6)

𝑃 𝑃 𝑃 𝑃 𝑃
P1 = 600. (𝐴 , 10% , 3) + 1000. (𝐴 , 10% , 3) . (𝐹 , 10% , 3) + 1200. (𝐴 , 12% , 4) . (𝐹 , 10% , 6)

P1 = 1492,11 + 1868,395 + 2057,392 = 5417,897

𝑃 𝑃 𝑃 𝑃 𝑃
P2 = 𝐺. ( , 𝑖% , 3) + 𝐺. ( , 𝑖% , 3) . ( , 𝑖% , 3) + 𝐺. ( , 𝑖% , 4) . ( , 10% , 6)
𝐺 𝐺 𝐹 𝐺 𝐹

𝑃 𝑃 𝑃 𝑃 𝑃
P2 = 100. ( , 10% , 3) + 200. ( , 10% , 3) . ( , 10% , 3) + 300. ( , 12% , 4) . ( , 10% , 6)
𝐺 𝐺 𝐹 𝐺 𝐹

P2 = 232,908 + 349,972 + 698.923 = 1281,802

P1 – P2 = 2854,291

4) P = 500$

i = 9%

N = 3 years
𝐹
𝐹 = 500. (𝑃 , 9% , 3)

𝐹 = 500*1.29503

𝐹 = 647,515

Receiving 500$ today is better than receiving 625$ after 3 years because, while time value of our
money increases ; amount of money that we receive remains same.