Week 2 Fin 370 Assignment

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Chapter 5Question 3Output area:Input area:Present valueYears nterest ratFuture value$ 5,039.79 13 9% $ 15,451 $ 39,332.59 4 7% $ 51,557 $ 1,730.78 29 24% $ 886,073 $ 3.37 40 35% $ 550,164
Chapter 5Question 4Input area:Output area:Present valueYearsInterest rateFuture value$ 181 4 13.18%$ 297 335 18 6.72%1,080 48,000 19 7.37%185,382 40,353 25 10.86%531,618
Here we need to fnd present valuecash FowsYearInvestment XInvestment Y147006700247006700347006700447006700547006700647000747000847000Part (A)Discount rate5Present value o± investment X$30,377.10 Present value o± Investment Y$29,007.49 Part (B)Discount rate15Present value o± investment X$21,090.41 Present value o± Investment Y$22,459.44 2.Present Value and MulTple Cash ²lows [LO1] Investment X o³ers to pay you $4,700 per year ±or eight years, Investment Y o³ers to pay you $6,700 per year ±or fve years. Which o± these cash Fow streams has the higher prei± the discount rate is 5 percent? I± the discount rate is 15 percent?
Par value of Bond1000years to maturity23coupon rate5.8yield to maturity4.7Coupon value58(1+YTM)^number of periods2.87589932=0.6522833.

QUESTION AND PROBLEM SETS2Ch. 5 Questions 3 & 4 (Question and Problems section)3.Calculating Present Values[LO2]For each of the following, compute the present value:(Excel Sheet)4. Calculating Interest Rates[LO3]Solve for the unknown interest rate in each of thefollowing:(Excel Sheet)Ch. 6 Questions 2 & 20 (Questions and Problems section)2. Present Value and Multiple Cash Flows[LO1]Investment X offers to pay you $4,700 per yearfor eight years, whereas Investment Y offers to pay you $6,700 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? (Excel Sheet)20.Calculating Loan Payments[LO2, 4]you want to buy a new sports coupe for $79,500, and the finance office at the dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the car. What will your monthly payments be? What is the effective annual rate on this loan?

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