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Answers or solution strategies to selected TVM
problems |
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1 |
12.68% |
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2 |
31.90704 |
vs |
35 |
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3 |
3996.853 |
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4 |
FV= |
10000 |
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PV = |
? |
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PMT = |
0 |
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n = |
4 |
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i = |
4% |
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8 |
105.0945 |
compounded quarterly |
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105.1267 |
compounded daily |
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Three cents more |
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9 |
" A toughy" |
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The holder of the
contract is entitled to 5000 bu. Of rapeseed
costing |
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$3.22 per bu.; that is, |
$16,100 |
worth of rapeseed. You have |
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promised the rapeseed at $3.10 per bu. or $15,500.
Thus, you must |
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pay the holder $600 to make up the
difference. Your $1000
"investment" |
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has netted you a $600 loss in six
months. The return is given by |
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PMT = 0 |
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FV = 400 |
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PV = 1000 |
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n = 6 mo |
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i = ? |
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12 |
PV = 500 |
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FV = 1621.70 |
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i = 4% |
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n = ? |
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PMT = 0 |
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17 |
PMT = ? |
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PV = 50 |
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i = 5% |
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n = 16 |
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FV = 0 |
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