Problem 3

1. PV 500
FV 555
Interest 0.900900900901 11.00%

2. PV 1850
FV 2078.66
Interest 0.889996440014 6.00%

3. PV 750
FV 1114.46
Interest 0.672971663406 2 * 4 = 8%

4. PV 12,500
FV 2134.24
Interest 5.856885823525 1.5 * 12 = 18%

Problem 4
1. FV 1122
PV 856
Interest 7%
Period 1.310747663551 4 periods

2. FV 725.5
PV 450
Interest 3%
Period 1.612222222222 4 years

3. FV 6724.44
PV 5000
Interest 2.50%
Period 1.344888 12 periods or 3 years

Problem 6
A. FV 10,000
FV(6,2) 0.89
8900
PMT 10,000
18,900
Effective Discount 5.50%

B. FV 10,000
FV(8,2) 0.8573
8573
PMT 10,000
18,573
Effective Discount 7.10%

C. FV 10,000
FV(10,2) 0.8264
8264
PMT 10,000
18,264
Effective Discount 8.70%

C. FV 10,000
FV(12,2) 0.7972
7972
PMT 10,000
17,972
Effective Discount 10.10%

D. The discount from Brandywine's perspective ia calculated as in number 1 but using the interest rate at which that firm borr

Problem 14
A. FV 12000000
FV(6,20) 36.7856
PMT $ 326,215

B. FV 12000000
FV(6,15) 23.276
PMT $ 515,553

C. FV 12000000
FV(6,10) 13.1808
PMT $ 910,415

D. FV 12000000
FV(6,5) 5.6371
PMT $ 2,128,754
terest rate at which that firm borrows. If Brandywine's rate is higher than Branson's, it will perceive a greater discount.