SOLUTION: Georgia State University Finance for Business Questions


Hi, Please cohibit the attached improve, let me understand if you possess any questions, thank you and cheerful prosperity, Best, James,

Part two
#5Suppose you pledge $1,294.00 into and recital 7.00 years from today into an recital that earns
14.00%. How abundant accomplish the recital be merit 16.00 years from today?
4208.02
Currency: Round to: 2 decimal places.

1294*1.14^(16-7) = 1294*1.149 = 4208.02

Part three
#3
What is the appreciate today of a specie instrument that accomplish pay $1,212.00 per year for 20.00 years?
Assume the primitive liquidation is made 6.00 years from today and the profit reprove is 10.00%.
6406.94

Submit
Answer format: Currency: Round to: 2 decimal places.

If liquidation is 1 year from today
PV(0.1,20, 1212,0,0)=10318.44
P = 10318.44/1.15=6406.94
#5
What is the appreciate today of a specie instrument that accomplish pay $4,803.00 complete six months for 20.00
years? Assume the primitive liquidation is made 3.00 years from today and the profit reprove is 9.00%.
50414.77

Submit
Answer format: Currency: Round to: 2 decimal places.

6 month reprove = 4.5%
PV(0.045,20,4803,0,1)/1.09^3=50414.77

Part Five
#1
What is the appreciate today of a specie instrument that accomplish pay $4,104.00 per year for 10.00 years?
Assume the primitive liquidation is made today and that there are 10.0 whole liquidations. The profit reprove is
11.00%.
26828.04

Submit
Answer format: Currency: Round to: 2 decimal places
PV(0.11,10,4104,0,1)=26828.04.
#3
Derek accomplish pledge $7,178.00 per year for 24.00 years into an recital that earns 4.00%, The primitive
pledge is made proximate year. How abundant accomplish be in the recital 39.00 years from today?

485795.74

Submit
Answer format: Currency: Round to: 2 decimal places.
FV=(0.04, 24, 7178,0,0)*1.0414 = 485795.74
#5
Derek accomplish pledge $178.00 per year into an recital starting today and limit in year...