Attachment # 00008921 - Corporate_Finance_W1_D3_Excel.xlsx
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Soultions Assignment 2, Part 11. Future Value. What is the future value ofa. $550 invested for 5 years at 15 percent compounded annually?b. $650 invested for 15 years at 14 percent compounded annually?2. Present Value. What is the present value of a. $453 to be received 8 years from now at a 14 percent discount rate?b. $1200 to be received 7 years from now at a 12 percent discount rate?3. Future Value of an Annuity. What is the future value of a. $1321 a year for 13 years at 13 percent compounded annually?b. $867 a year for 10 years at 13 percent compounded annually?4. Present Value of an Annuity. What is the present value ofa. $487 a year for 5 years at a 9 percent discount rate?b. $798 a year for 13 years at a 11 percent discount rate?5. Annuity. How many years will it take for a payment ofa. $590 to grow to 9090.91 at a compound rate of 14 percent?b. $900 to grow to future value of 10,586.21 at a compound rate of 14 percent?6. Mortgage. (Hint: P/Y=12) What is the payoff on a 30 year, 7% original mortgage ofa. $550,552 with a payment of 3,744.50 with 12 years remaining?b. $190788 with a payment of 1,143.87 with 15 years remaining?7. Stock. What is the required rate of return on a stock with aa. $0.75 expected dividend and a 34 price with 7% growth?b. $1.25 expected dividend and a 15 price with 8% growth? Answers
Corporate Finance

Corporate Finance

Question # 00195059 Posted By: rpare Updated on: 02/12/2016 04:59 PM Due on: 02/01/2016
Subject Finance Topic Finance Tutorials:
Question
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Part One: Application, Time Value of Money Calculations

Download the Week 1 quantitative exercises called See Attached

Required:

Complete the assignment using the formulas embedded in Microsoft Excel and/or a financial calculator.

Part Two: Time Value of Money Problem

You would like to buy a new car in five years for cash. The price of the car today is $56,000 and you expect that the price will increase by 6% per year. You plan to save for this car starting today with a deposit in your savings account, which currently has a balance of $1,800 and earns 4% compounded annually.

You know that you will be receiving an inheritance of $3,500 three years from today, which you will deposit in your savings account for the car. If you make a deposit every month for the next five years beginning one month from today, how much will the deposit have to be in order for you to be able to pay cash for the car?

Required:

Complete the assignment using the formulas embedded in Excel and/or a financial calculator. Include an Excel document that shows your calculations.


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  1. spqr
    Tutorial # 00189910 Posted By: spqr Posted on: 02/12/2016 07:09 PM
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