Inputs with financial calculator preffered. I.E. N=? FV=? etc. 2.) A firm will s
ID: 2638676 • Letter: I
Question
Inputs with financial calculator preffered. I.E. N=? FV=? etc.
2.) A firm will set up a fund for retirees. A cash contribution will be made today, in the amount of $2,000,000, and will assume to earn interest at the rate of 8% per annum. The fund will disburse monthly for 12 years, and the desired cash balance at the end of 12 years is $1,000,000. What is the monthly payment that can be made from this fund?
$24,266
$17,599
$12,132
$17,491
QUESTION 7
What is the EAR of 15.5% per annum, compounded weekly? Show your answer to two decimal points.
QUESTION 8
What is the NPV for an investment with an initial outlay now of $460, and expected cash inflows of $135, $260 and $346 at the end of years one through three, respectively, at a discount rate of 7.6% ?
QUESTION 9
A business borrows $329,044 for 10 years at an annual rate of interest of 8.6%. If payments are annual and the loan will negatively amortize by $40,906, what will be the annual payment required? Put your answer in as a positive number.
a.$24,266
b.$17,599
c.$12,132
d.$17,491
Explanation / Answer
2) PV = -$2,000,000
I/Y = 8% / 12 = 0.6667% (Interest rate per period)
N = 12 * 12 = 144
FV = $1,000,000
Solving for PMT = $17,491.19
7) Effective Annual Rate = (1 + Periodic Rate)m