| ) | eM SOLUTION
} Cidoral ~ pede a
3/ G4 9 4 +4+—f
+_| (Ah pa | Lappe
EN FH0,O00O |g,
Met Gaye | OCrfery 7) Th SPR
4 EN = PV CANAD op $000 & $4000 C11 PAM as vt 9
= SSO (C14 AOL) Gs nd 5
SPN 2 PV C4440)” fos) $4,000
1G... Qucrstecly, interest payment. ak.. 1,57) poe. eld. om aflechive,...,
anhuat Aale of
EAR = (4s me)" 4 abe lay, cat |
31 | 4% bompouackla tale (iy td {GBs
+ 4.1% compounelec quarterly EAR ce anh y" ~ te AACE
+ 41S compound coy [EAR = 415% :
La) Simple (nterest rote: Alle Py, (neh x 40)) = $150,000
b) Compoundad vintuebd rote; F Nyy = PVg (49 SL) = $460), 229.5
co) P= 9400, 000; FV= S4bd, 8R9.5° , Wiang. ariplt inecaast
GAG, 289.5 = 9100, ok ares AQ) =p A=
i
4
9.5 PNgl =| ANS (2 450000 g 44,009. 6
Pret eye Cs 8%)5 :
FYas| $5000 _| gg 15,364.09
wd 11 PNe = 150,000) _
| 5 years a ay Ca 8h)
AO... Andifjctnct.siaplts. Aba. We, Skeet ths, pega value, of bot
: of ther fl be lawn | eekoa
i H = | S2i00D = Able! 2 Az) doko
>| baie |” | Chaat PT hl» iPaap ssfosrtemfoeeteeafemntuee Jeepers netfee
A1.|_a) PN, |= 134,000, 000 | | {| |
A el a | |
poof i 4 4
$690,000 |_| $ €00,p00.
jo Papa)
|
$600, 600 $600,000 |
I |
Nes Gilet * Toh! | 4h OB Fey a LE
2 4 a [ | |
eee $0,000 --- ( forever)
Pv, + - L- u we 1-4 4.845, 000,
ao | 4 §; 6
Sono} =a Eo
| |
nope: furtado fat] anh fotudla. to Guscouse se ta ow of jan!
annual agmant| of 45D, 000 fe | ahs foimula gives, a value. bae
| Period \bafore Hine! firet couksflow, Un lata streamn| Cf meant) the formula, qivek
ca at ear H Atom aa Thentfore, we nage tp hiscount thie value
one mései time to) sates] tet Tia of tock fea fore gee}
[PM = 2600, Teles Hee) = Ia 099, bad. oe |
I
Plage an gr] 4 beth [Fal
| $2160,0b0_ |
a shy
neal Lon. i sean eae Je s1lodataon
+} i
[Ad Option 4: pay) 4b 200 Leda |=>| PN = 3.64000.
Open a: r ae Tes and thet $hod ech year
[ake ne pl
2 ae 7
QAp0.| 4400 quo! ppt tt | A
| | T |
apf tt LF |
f Cet
[PV = $4p0 + js4o0 [ Chea?
| =) God Age, SF43, Options. 2 4
pH
¥50,000,000___¥5bmit
ESD mil,
Ve ¥oomiew mie
ne Ce ayy
Option 2: PN = ¥90 mil
= ¥38, O76, 923. OF
\
4) Pant | Of dd | 3 tO Nite: 6 months
@500, g5DO, _I5DO. $500, = n= olxd0=L0
See 2h pa
Gray tt) 7 pe IE
ie _——— mt =o
FVe al x ] 5DO x Ta
roo: | O | ft | | be | 4D | nites 44 pe
| Ley} | |
1, leMaole [Al [[MUt ]] = HET
ep 30 {
£5 $ei,000,060 ¥ al ag Sh Ae FACT
7. 3
AgPook ope, O | 4 |e | ¢ ja | | ob
410,000_A. A A,
Aap.oyo AA
| a [
PV= $140,000 ar Che Ber = $98¢,492.04
Aovk | L L i
Tits not {aie becawre the prectet volun cf the annuity that bank offer
is Amer then the present value tn her Agtiament account (< $1 mit)
sh [$015,000, 2 A [ IU in6 2] wy As Sd, 9493
| cre
bak toad | | 1
AB Suppose, the won will be tasted fouver.
hepa hey sopra lop sl einen
i | 9) fg ef