Introduo finanas

Premissas

Mercados Competitivos
Capital
pode circular com relativa facilidade
Frices so pequenas em relao ao poder de boas ideias
o Frices: obstculos ao processo para concretizar uma ideia financeiros, burocracia, esforo...

Essncia da tomada de deciso

Toda deciso envolve tempo e incerteza

Entender o impacto da passagem do tempo em uma deciso
Inicialmente assumir nenhuma incerteza, para compreender o valor
do dinheiro no tempo

Terminologias

PV
FV
n
r = taxa de juros

(5 points) $50 today is worth MORE than $50 tomorrow.

True
False

(5 points) $100 invested for 10 years at 12% interest is worth more in FV terms than $200 invested for 10 years at 4%
interest.
True
False

(5 points) Megan wants to buy a designer handbag and plans to earn the money babysitting. Suppose the interest rate is
6% and she is willing to wait one year to purchase the bag. How much babysitting money (to the nearest whole dollar)
will she need to earn today to buy the bag for $400 one year from now? (Enter just the number without the $ sign or a
comma)

Answer for Question 3

XXX
37736

(10 points) Johnny and Darren both earn $100 working on their respective neighbors' big farms. Johnny puts his $100 in
the piggy bank that his parents gave him to encourage him to save. Darren puts his money in a savings account his
parents set up for him. The savings account pays 3% interest. They both take their money out after 5 years. How much
more money does Darren have than Johnny?
19
10
3
16

(10 points) Your dad invested $25 for you 70 years ago in a fund and you have not withdrawn any money since. If the
fund has averaged a return of 8 percent over the last 70 years, what is the current value of that investment? (Round to
the nearest whole dollar; enter just the number without the $ sign or a comma)

Answer for Question 5

XXX
546516

Question 6
(10 points) Bridgettes grandparents opened a savings account for her and placed $500 in the account. The account
pays 3.5% interest. Bridgette wants to be a singer and she has her heart set on a new karaoke machine. The machine
costs $150. How much less will the account be worth in 8 years if she buys the karaoke machine now versus leaving the
account untouched? (Enter just the number without the $ sign or a comma; round to the nearest whole dollar.)

Answer for Question 6

XXX
19752

(10 points) The Johnson family is worried about their ability to pay college tuition for their daughter Chloe. Tuition rates
are currently $9,500 per year at the state college and have been increasing at a rate of 7% annually. Chloe will begin
college in 7 years. The Johnsons have $9,500 set aside now in a college plan that will earn 6% per year. They recently
heard about a plan to pre-pay tuition at current rates, that is pay $9,500 per year of college. Should they pre-pay Chloes
first year now or keep the money invested and pay the tuition 7 years from now? How much are they saving in FV terms
with this decision?
Don't Pre-pay; 685
Pre-pay; 781
Pre-pay; 970
Don't Pre-pay; 781
Don't Pre-pay; 970
Pre-pay; 685

(15 points) Ralph knows that he is going to have to replace his roof soon. If he has the roof replaced now, it will cost
$10,000. He could wait 5 years, but it will then cost him $20,000. At what rate will these options cost the same. This is
also known as the break-even point. Exact calculation up to two decimals is not difficult. If stuck, trial and error will help.

(Enter the answer with no more nor less than two decimal places, and leave off the % sign. For example, if your answer
is 13.97% you should enter it as 13.97 NOT 0.14 nor 14)

Answer for Question 8

OK
14.87%

(15 points) Rondo is in the market for a new car. He has narrowed his search down to 2 models. Model A costs $32,000
and Model B costs $28,000. With both cars he plans to pay cash and own them for 4 years before trading in for a new
car. His research indicates that the trade in value for Model A after 4 years is 60% of the initial purchase price, while the
trade in value for Model B is 45%. The interest rate is 5%. For simplicity assume that operating and maintenance costs
for the models are identical. Which model is the better decision and how much "cheaper" is it than the alternative?
Model A; 1430
Model A; 1257
Model B; 4000
Model A; 4000
Model B; 1207
Model B; 1430

(15 points) College tuition has been rising at a rate of 7% per year. Currently the average tuition of a state college is
$9,500/year. Andreas son Trevor will begin college in 12 years. Andreas portfolio is making 5% annually. How much
does Andrea need to have set aside today/now to pay for 4 years of college for Trevor? (Note:Tuition will continue to
change annually and Andreas portfolio balance will continue to accrue interest while Trevor is in school. Also, tuition is
due at the beginning of each year.)
87432

49035

58905

75400