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Chapter 6Problems 1,3,6,10,14,15,17,36,42,45,46,50,66,70,71
Input boxes in tan
Output boxes in yellow
Given data in blue
Calculations in red
Answers in green
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Chapter 6Question 1
Input area:
Output area:
Discount rate
Year Cash flow1234
-$
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Chapter 6Question 3
Input area:
Output area:
Discount rate
Year Cash flow1234
-$
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Chapter 6Question 6
Input area:
Interest rate on annuity# of years
Annual revenues
Output area:
Present value -$
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Chapter 6Question 10
Input area:
Interest rateDesired amount
Output area:
Present value = #DIV/0!
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Chapter 6Question 14
Input area:
Output area:
Stated rate (APR) # of times per year Effective rateFirst National Bank #NUM!
First United Bank #NUM!
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Chapter 6Question 15
Input area:
Output area:
Stated rate (APR) # of times per year Effective rate#NUM!
The borrower is actually paying annualized interest of0.00% per year, not the #NUM!
reported on the loan contract.
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Chapter 6Question 17
Input area:
Interest rate# of yearsDeposit# of times compounded per year
Output area:
Future value = #DIV/0!
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Chapter 6Question 36
Input area:
Amount per year in option 1
Amount per year in option 2Signing bonus in option 2
Interest rate# of times compounded per year
Output area:
EAR #NUM!
Present value of option 1 #NUM!
Present value of option 2 #NUM!
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Chapter 6Question 42
Input area:
Monthly paymentPrice of houseNumber of months
APR
Output area:
Present value of payments -$
Balloon payment -$
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Chapter 6Question 45
Input area:
Monthly paymentPrice of warehousePercentage of pruchase priceNumber of years
Output area:
Amount of loan -$
Interest rate per month #NUM!
APR #NUM!
EAR #NUM!
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Chapter 6Question 46
Input area:
Selling priceProduction cost# of years until saleDiscount rate
Output area:
Present value of sale -$
Profit (loss) -$
Breakeven rate #NUM!
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Chapter 6Question 50
Input area:
Amount of payment# of years until payments begin# of years value is to be calculatedInterest rate
Output area:
Present value of perpetual stream = #DIV/0!
Present value at requested year = #DIV/0!
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Chapter 6Question 66
Input area:
Annual withdrawal# of years to withdraw# of years until retirementInterest rate
Employer contributionTrust fund distributionYears until distribution
Output area:
a. Present value of withdrawals = -$
Annual deposit until retirement = #NUM!
b. Present value in lump sum = -$
c. Future value of trust fund deposit = -$
Total annual deposit necessary = #NUM!
Friend's annual deposit = #NUM!
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Chapter 6Question 70
Input area:
Annual payment# of years
Annual payout# of years
Output area:
Year Cash flow
1 -$2 -$3 -$4 -$5 -$6 -$7 -$8 -$9 -$
10 -$
Breakeven rate = #NUM!
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Chapter 6Question 71
Input area:
Plan X:
Annual payment# of years
Plan Y:
Annual payout# of years
Output area:
Discount rate needed = #DIV/0!
