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CH 3 Solutions Final
CH 3 Solutions Final
Combining Factors
Solutions to Problems
3.1 P = 100,000(260)(P/A,10%,8)(P/F,10%,2)
= 26,000,000(5.3349)(0.8264)
= $114.628 million
3.2 P = 50,000(56)(P/A,8%,4)(P/F,8%,1)
= 2,800,000(3.3121)(0.9259)
= $8.587 million
3.3 P = 80(2000)(P/A,18%,3) + 100(2500)(P/A,18%,5)(P/F,18%,3)
= 160,000(2.1743) + 250,000(3.1272)(0.6086)
= $823,691
3.4 P = 100,000(P/A,15%,3) + 200,000(P/A,15%,2)(P/F,15%,3)
= 100,000(2.2832) + 200,000(1.6257)(0.6575)
= $442,100
3.5 P = 150,000 + 150,000(P/A,10%,5)
= 150,000 + 150,000(3.7908)
= $718,620
3.6 P = 3500(P/A,10%,3) + 5000(P/A,10%,7)(P/F,10%,3)
= 3500(2.4869) + 5000(4.8684)(0.7513)
= $26,992
3.7 A = [0.701(5.4)(P/A,20%,2) + 0.701(6.1)(P/A,20%,2)((P/F,20%,2)](A/P,20%,4)
= [3.7854(1.5278) + 4.2761(1.5278)(0.6944)](0.38629)
= $3.986 billion
3.8 A = 4000 + 1000(F/A,10%,4)(A/F,10%,7)
= 4000 + 1000(4.6410)(0.10541)
= $4489.21
3.9 A = 20,000(P/A,8%,4)(A/F,8%,14)
= 20,000(3.3121)(0.04130)
= $2735.79
3.10 A = 8000(A/P,10%,10) + 600
= 8000(0.16275) + 600
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= $1902
3.11 A = 20,000(F/P,8%,1)(A/P,8%,8)
= 20,000(1.08)(0.17401)
= $3758.62
3.12 A = 10,000(F/A,8%,26)(A/P,8%,30)
= 10,000(79.9544)(0.08883)
= $71,023
3.13 A = 15,000(F/A,8%,9)(A/F,8%,10)
= 15,000(12.4876)(0.06903)
= $12,930
3.14 A = 80,000(A/P,10%,5) + 80,000
= 80,000(0.26380) + 80,000
= $101,104
3.15 A = 5000(A/P,6%,5) + 1,000,000(0.15)(0.75)
= 5000(0.2374) + 112,500
= $113,687
3.16 A = [20,000(F/A,8%,11) + 8000(F/A,8%,7)](A/F,8%,10)
= [20,000(16.6455) + 8000(8.9228)]{0.06903)
= $27,908
3.17 A = 600(A/P,12%,5) + 4000(P/A,12%,4)(A/P,12%,5)
= 600(0.27741) + 4000(3.0373)(0.27741)
= $3536.76
3.18 F = 10,000(F/A,15%,21)
= 10,000(118.8101)
= $1,188,101
3.19
100,000 = A(F/A,7%,5)(F/P,7%,10)
100,000 = A(5.7507)(1.9672)
A = $8839.56
3.20
3.21
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= $123.90
3.22
3.23
A = [10,000(F/P,12%,3) + 25,000](A/P,12%,7)
= [10,000(1.4049) + 25,000](0.21912)
= $8556.42
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displayed, reproduced or distributed in any form or by any means, without the prior written permission of the publisher, or used
beyond the limited distribution to teachers and educators permitted by McGraw-Hill for their individual course preparation. If you are
a student using this Manual, you are using it without permission.
PROPRIETARY MATERIAL. The McGraw-Hill Companies, Inc. All rights reserved. No part of this Manual may be
displayed, reproduced or distributed in any form or by any means, without the prior written permission of the publisher, or used
beyond the limited distribution to teachers and educators permitted by McGraw-Hill for their individual course preparation. If you are
a student using this Manual, you are using it without permission.
PROPRIETARY MATERIAL. The McGraw-Hill Companies, Inc. All rights reserved. No part of this Manual may be
displayed, reproduced or distributed in any form or by any means, without the prior written permission of the publisher, or used
beyond the limited distribution to teachers and educators permitted by McGraw-Hill for their individual course preparation. If you are
a student using this Manual, you are using it without permission.
= 1.1542(0.8696)
= $1.004 billion
3.43
3.44
3.45
3.46
3.47
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F = 1,166,667(F/P,8%,6)
= 1,166,667(1.5869)
= $1,851,383
3.48
P = [2000(P/A,12%,6) 200(P/G,12%,6)](F/P,12%,1)
= [2000(4.1114) 200(8.9302](1.12)
= $7209.17
3.49
3.50
3.51
x = 4000(P/A,10%,5)(P/F,10%,1)
= 4000(3.7908)(0.9091)
= $13,785
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Answer is (d)
3.55
P = 7 + 7(P/A,4%,25)
= $116.3547 million
Answer is (c)
3.56
Answer is (d)
3.57
3.58
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= $40,185
Answer is (b)
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$4,000,000
3,000,000
2,250,000
1,678,000
1,265.625
949,219
$550,000
650,000
750,000
2.
Find remaining project fund needs in year 3, then find the A for the next 3 years
(years 4, 5, and 6):
F3 = (13.1716 3.0)(F/P,7%,3)
= (10.1716)(1.2250)
= 12.46019
A = 12.46019(A/P,7%,3)
= 12.46019(0.38105)
= 4.748
Chapter 3
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Chapter 3
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