Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Item 1
PV
5000
N
15 Beginning of year
Type
% of portfolreturns
PV
FV
Stock
0.8
0.16
4000
37,062.08
Bonds
0.2
0.086
1000
3,447.05
40,509.13
Item 2
N
Type
Stock
Bonds
Item 3
Rr
15
FV
returns
PMT
Check
37062.08
0.128 826.21 37,062.08
3447.048
0.065 133.85
3,447.05
40509.13
0.09
-->
-->
5%
10
40000
8%
10
100000
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
535,272.80
-36,949.61
65,155.79
215,892.50
65,155.79
65,155.79
-65,155.79
-60,329.43
65155.7850710977
65155.7850710977
65155.7850710977
-55860.5839086914
-51722.762878418
-47891.4471096463
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
65155.7850710977
-44343.9325089317
-41059.1967675294
-38017.7747847494
-35201.6433192124
-32594.1141844559
-30179.7353559777
-27944.1994036831
-25874.258707114
-23957.6469510314
-22183.0064361402
-20539.8207742039
-19018.3525687073
-17609.585711766
-16305.1719553389
-15097.3814401286
-13979.056889008
-12943.5711935259
-11984.7881421536
-11097.0260575497
-10275.0241273608
-751,165.30
751,165.30
4-12, 4-13, 4-14, 4-15, 416, 4-17, 4-18, 4-19, 4-20, 4-21, 4-22, 4-23, 4-24, 4-26, 4-28, 4-30, 4-31, 4-32, 433
4.12 FV, ordinary annuities
a. 400 per year for 10 years at 10%
b.200 per year for 5 years at 5%
c. 400 per year for 5 years at 0%
d. Rework a to c as annuities due
PMT
PMT
-400
-200
-400
-400
-200
-400
8%
1
2
3
4
5
NPV
At 0% interest rate?
100
400
400
400
300
1,251.25
300
400
400
400
100
1,300.32
1,600.00
1,600.00
Years
M
Compounded annually
Compounded semi-annually
Compounded quarterly
Componded monthly
4.17 PV of 500
Compounded semi-annually
Compounded quarterly
Componded monthly
5
R
1
2
4
12
0.12
0.12
0.12
0.12
R
2
4
12
0.12
0.12
0.12
Compounded semi-annually
Compounded quarterly
4.19
400
200
Nominal Rate
Universal Bank
Regional Bank
4.2
2
4
N
7% Compounded Annu
6% Compounded quart
PV
a.
Period
b.
c.
N
25000
5
Beginning BalancePayment
1
25,000.00
6,594.95
2
20,905.05
6,594.95
3
16,400.61
6,594.95
4
11,445.72
6,594.95
5
5,995.34
6,594.95
50000
5
50000
10
a.
PV
4.23
PV
8000000
PMT
85000
4.24
Period
PMT
Beginning
0
33872.11
1
33872.11
2
26243.1577
3
18080.178739
4 9345.79125073
I
1250
8273.59
0.12
PV
1000000
5
Begininng BalancePayment
1 1,000,000.00
298,315.55
2
851,684.45
298,315.55
3
681,121.56
298,315.55
4
5
5 deposits of 100 every 6 months,
made today
Bank pays nominal interest of 12%
semi-annual compounding
total N is 10 years
4.31 a
4.31 b
484,974.24
259,404.83
298,315.55
298,315.55
1
2
3
4
5
100.00
106.00
112.36
119.10
126.25
1432.02
508.92
65,155.79
5%
10
40000
215,892.50
8%
10
100000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
65,155.79
65,155.79
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
65155.7850711
24
25
Step 4: Find difference of savings and
retirement pay
Step 5: Find PMT
65155.7850711
65155.7850711
484,457.28
-38,516.57
FV: Savings20 year old student wants to start sving for retirement. Save 1,095 per year a
N
45
PMT
-1095
I
0.12
1,487,261.89
11,154.42
PV
I
Year
Tution Fee
5
6
7
8
19,144.22
20,101.43
21,106.51
22,161.83
82,514.00
Savings
PV
I
N
-7500
6%
5
FV
N
PV
10,036.69
65,463.37
5
6%
10,955.63 PMT the father has to make fo
Option 2
Savings at 23 years old
PV
I
N
-7500
6%
10
Year
13,431.36
5
6
7
8
Tution Fee
19,144.22
20,101.43
21,106.51
22,161.83
82,514.00
Step 1:
Find EAR on loan of 10% nominal
10.471%
Or directly input the monthly
compounding into the formula
Step 2:
Find total Borrowed at age 21
105,853.57
Step 3:
Find periodic Rp
2.52%
to get monthly rate, divide nominal rate by 12
monthly rate
0.0083333333
then to get qaurterly periodic rate, raise the monthly rate to 3
periodic rate
0.025208912
Step 4:
Get PMT
3,441.04
Retirement Period
PV of Retirement Expenses
Retirement Expense
Liability - FV of wealth.
Fund deficit of future savings
I
10
5
5
I
10
5
5
0.1
0.05
0
PV
700
-700
85000
9000
Periodic Rate
N
0.12
0.06
0.03
0.01
PR
Total N
5
5
5
5
N
0.06
0.03
0.01
PV
5
10
20
60
Total N
5
5
1
500
500
500
500
FV
10
20
12
500
500
500
Periodic Rate
0.12
0.12
N
0.06
0.03
Total N
5
5
10
20
PMT
0.1
6,594.94
Interest
Repayment of Princi Ending Balance
2500
4,094.95
20,905.05
2,090.51
4,504.45
16,400.61
1640.0605
4,954.89
11,445.72
1144.57155
5,450.38
5,995.34
599.533705
5,995.42
(0.08)
0.1
13,189.87
0.1
8,137.27
sales grow?
FV
12,000,000
10
7.18%
14.87%
R
30
Added Interest
9%
Payment
0
10000
10000
10000
10000
2371.0477
1837.021039
1265.61251173
654.2053875511
FV
Balance
N
10000
R
33,872.11
26,243.16
18,080.18
9,345.79
(0.00)
N
5.9379888809
3000
7%
-10000
(7,941.06)
(8,893.99)
1,106.01
PMT
15%
298,315.55
Interest Payment
Repayment of Princi Ending Balance
150,000.00
148,315.55
851,684.45
127,752.67
170,562.89
681,121.56
102,168.23
196,147.32
484,974.24
57%
72,746.14
38,910.72
225,569.42
259,404.83
0.06
0.06
0.06
0.06
0.06
259,404.83
0.00
106.00 OR
112.36
119.10
126.25
133.82
Rn
Rr
10
0.12
0.03
0.12
0.03
-65,155.79
-55,860.58
-51722.762878418
-47891.447109646
-44343.932508932
-41059.196767529
-38017.77478475
-35201.643319213
-32594.114184456
-30179.735355978
-27944.199403683
-25874.258707114
-23957.646951032
-22183.00643614
-20539.820774204
-19018.352568707
-17609.585711766
-16305.171955339
-15097.381440129
-13979.056889008
-12943.571193526
-11984.788142154
-11097.02605755
-10275.024127361
-9513.9112290378
-700,349.78
700,349.78
ve 1,095 per year and the stock account has an expected annual return of 12%. How much mone
-15000
5%
Discount it by 6%
19,144.22
18,963.62 1 year from 18
18,784.72 2 years from 18
18,607.50 3 years from 18
75,500.06 total PV at 18
48
36
24
12
28,512.53
27,100.39
25,758.19
24,482.47
105,853.57
2.41%
FV
PMT
-749
7.00%
749
7.00%
-201229
10
9.00%
FV
Check
881.17
895.42
903.06
908.35
PV
881.17
895.42
903.06
908.35
Check
279.20
276.84
443.72
279.20
276.84
443.72
-2684.8
15.00%
FV
Check
5,272.32
2,636.16
a.
b.
5,272.32
5,374.07
33,872.11
N
597.53
1,432.02
PV
M
5
15
PMT
508.92
93.06
Rn
2
2
Rr
0.12
0.12
PMT
0.06
0.06
-100
2%. How much money will she have when she is 65 years old?
0.00
PV
(597.53)
ST-1
a.
b.
ST-2
EE
CC
RE
IP
% of
Business Beta
0.6
0.25
0.1
0.05
0.7
0.9
1.3
1.5
5%
6%
b
1
11.00%
b
1.2
12.20%
6.4 Demand ProbabilitReturn
Weighted Rate of Return
W
0.1
-0.5
-0.05
BA
0.2
-0.05
-0.01
A
0.4
0.16
0.064
AA
0.2
0.25
0.05
S
0.1
0.6
0.06
Expected r 11.40%
STD
26.69%
coefficient 2.341366
6.8 7,500 in each 20 common stocks
beta
1.12
sell stock with beta of 1.0, and replace with 1.75
Weighted ABeta
7500
0.05
1
0.05
Eq
0.05+(19*x)=1.12
150000
0.056316
Solve for x 0.056316
Portfolio Be
1.12
Check
1.12
0.05
0.05
6.9 Stock
A
B
C
D
Inv
0.056 0.053200
1.75 0.087500
1.0983
Beta
400000
600000
1000000
2000000
4000000
1.5
-0.5
1.25
0.75
rrf
6%
market's re
14%
Required rate of return
6.12
Year
ra
6
7
8
9
10
mean
std
item c
coefficient item d
rf+(rm-rff)*b
12.100000%
rb
-0.18
0.33
0.15
-0.005
0.27
0.113
0.207894
1.839772
item b
-0.145
-0.1625
0.218
0.274
0.305
0.2275
-0.076
-0.0405
0.263
0.2665
0.113
0.113
0.20777 0.201280898
1.838675 1.781246887
0.05
0.05
0.113
0.113
item b column
0.113
item c row
item d row
Market
0.13
0.07
-0.05
0.01
0.11
0.12
0.1
-0.12
0.01
0.15
y
1.347118 0.650793651
required rates of returx
y
0.127356 0.092539683
.8 X, .2 Y, required rate of return?
.8 X, .2 Y
0.138
0.166
-0.138
0.026
0.182
1.12
1.75
overvalued
-0.11
0.14
0.03
ew Weighted Beta
.05+(19*x)=1.12
0.056
0.0875
1.1515