Fin 370 Week 2 Individual 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.

Chapter 6Ch. 6: Questions 2 & 20 (Questions and Problems section)#25%Answer:Investment XInvestment Y4700*8$ 37,600.00 6700*5 $ 33,500.00 YearsYearsI took 4700 x 1/1.051$ 4,476.19 1$ 6,380.95 I took 4700 x 1/1.05(2)2$ 4,263.04 2$ 6,077.10 I took 4700 x 1/1.05(3)3$ 4,060.04 3$ 5,787.71 I took 4700 x 1/1.05(4)4$ 3,866.70 4$ 5,512.11 I took 4700 x 1/1.05(5)5$ 3,682.57 5$ 5,249.63 I took 4700 x 1/1.05(6)6$ 3,507.21 $ 29,007.50 I took 4700 x 1/1.05(7)7$ 3,340.20 I took 4700 x 1/1.05(8)8$ 3,181.15 $ 30,377.10 15%Answer:Investment XInvestment Y4700*8$ 37,600.00 6700*5 $ 33,500.00 YearsYearsI took 4700 x 1/1.151$ 4,086.96 1$ 5,826.09 I took 4700 x 1/1.15(2)2$ 3,553.88 2$ 5,066.16 I took 4700 x 1/1.15(3)3$ 3,090.33 3$ 4,405.36 I took 4700 x 1/1.15(4)4$ 2,687.24 4$ 3,830.75 I took 4700 x 1/1.15(5)5$ 2,336.73 5$ 3,331.08 I took 4700 x 1/1.15(6)6$ 2,031.94 $ 22,459.44 I took 4700 x 1/1.15(7)7$ 1,766.90 I took 4700 x 1/1.15(8)8$ 1,536.44 $ 21,090.42 Answer: At 5% Discount rate the Investment X has the higher present vahigher present value. #20Answer:I had an extremely hard time trying to figure this out, I'm nto calculate the information, but here is what I came up wPresent Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,700 per yeaCalculating Loan Payments [LO2, 4]You want to buy a new sports coupe for $79,dealership has quoted you an APR of 5.8 percent for a 60-month loan to buy the

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