Problem 1

Pay today: B1 = $15,000

Pay a month: B2 = $200
Annual rate: B3 = 8%
Period: B4 = 3 (years)
Original cost: B6 = PV(B3/12, B4*12, -B2) + B1
Result = $21,382.36
 Problem 2 b, Select A17:J28, Use Data -> What-if Analysis -
> Data Table
a,

=24000-0.5*B1

=B4*B2 Result: In the row that unit price = 25000:

=B5+B6
=B1*B4
=B8-B7 = 76000000

b, Profit: A17 = B9
B17:J17 = Change in cost to make 1 cup of milk tea…
A18:A28 = Selling price per cup of milk tea…
Select A17:J28, Use Data -> What-if Analysis -> Data Table

C, Maximum profit: =MAX(B18:J28) = $129000000

 Problem 3

a,

Constraints:
Total number of new stores: C9 = SUM(B2:D2)
Result:
Used budget: C10 = SUMPRODUCT(B2:D2,B3:D3)
Total net profit = $20.4 million.
Number of employees: C11 = SUMPRODUCT(B2:D2,B4:D4)
Choose Data -> Solver:
Problem 4
Year: Column A = 1-60
Initial balance: Column B = Ending balance cell of
previous row
Ending balance: Column N = (Initial balance +
Contribution – Withdrawals)*(1+Interest rate)
Contribution: First year is a variable cell, each
following year increases by $200.
Withdrawals: $0 from year 1-30, $25000 from year
31 onwards..
Interest rate: 7.5% in the first 20 years, 6.5% from
year 21 onwards.
Result

Use Data -> What-if Analysis -> Goal Seek

Problem 5
Parameters for option price:

d1 = (LN(B5/B6)+(B8-B9+B10^2/2)*B7)/(B10*SQRT(B7))
d2 = B18-B10*SQRT(B7)
N(d1) = NORM.S.DIST(B18,TRUE) = 0.290139855
N(d2) = NORM.S.DIST(B19,TRUE) = 0.213895846

Call price:
=> Call price function in D13:
Result: B5*EXP(-B9*B7)*E18-B6*EXP(-B7*B8)*E19

Call price = $10,850.10 Put price:

=> Put price function in D14:
Put price = $59,931.09
B5*EXP(-B9*B7)*(E18-1)-B6*EXP(-B8*B7)*(E19-1)