Manalo, Nicole Leen C.

22
a. n = 360 PVA=
PMT [ 〖𝑃𝑉𝐹𝐴〗 _.5,360]
I/Y = 0.005 178000 = PMT (166.792604197)
PV= 178000 PMT= 1,067
FV= 0

b. 178000 x .06/12 = 890

c. Total Payments: 384192

Total Interest: 206192

d. n = 276
PMT= 1,067
PV= 159,558

e. n = 180 PVA=
PMT [ 〖𝑃𝑉𝐹𝐴〗 _.5,180]
I/Y = 0.5 178000 = PMT (118.503132344)
PV= 178000 PMT= 1502
PMT= 1502.07

Total Payments: 270373

Total Interest: 92373
Difference: 113,819

28 k 0.5 fixed rate 8%

n 360 k 0.67
PVFA.5,360 166.792 n 360
PVA 300,000 PVA 300,000
PMT 1,799 PVFA.67,360 136.283
PMT 2,201
After 10 yrs
PVFA.5,240 139.581
PVA 251,106

Remaining 20 years
k 1
n 240
PVFA1,240 90.8194
 PVA 251,106
PMT 2,765

ARM 564
per month higher

31
a. Earnings 19,000,000
Rate of Return 0.2
P of Hanson 95,000,000
b. Capitalizing in a a higher price would mean lower in percentage of return because of Roper paying more for the exact sam
c. The argument that Hanson is likely to use is based on the data provided is that the firm's stability
and it is believe that the business is going to continue with the going concern assumption.

32 k 0.5
n 60
PV 50,000
FVF.5,60 1.3489
FV 67,445

Continuous compounding
PV 50,000
e^(.06)(5) 1.3499
FV 67,495

Difference 50

33
a. PMT 600
PVFA1,120] 69.7005
PVA 41,820
Savings req 18,180

b. FVA 18,180
PVFA2,8 8.583
Save up 2,118

34 Current Uncle Murray Loan

PV 10,000 PMT 1,000 PMT 300
FVF.5,18 1.0939 FVFA.5,18 18.7858 PVFA1,180 83.3217
FV 10,939 1+k 1.005 PVA 24,997
 FVAd 18,880

Source 10,939 Save up FVA 20,185

18,880 FVFA2,6 6.3081
24,997 PMT 3,200
54,815
Shortfall 75,000
54,815
20,185

41 PV Annuity
k 0.75
n 60
PMT 500
PVFA.75,60 48.1734
PVA 24,087
k 0.75
n 24
FV 24,087
PVF.75,24 0.8358
PV 20,132
paying more for the exact same earnings.
ability