Revision Class UFM

sales
-COGS
GP
-OE
EBIT or OP
-INT
EBT
-TAX
NI
-PD
EACS

SALES 3060
-COGS 1800
GP 1260
-OE 600
EBIT 660
-INT EXP 126
EBT 534
-TAX 213.6
NI 320.4
-PD 18
302.4

EPS =302.4/1000
0.3024

OP 100,000
-INT EXP 34,000
EBT 66,000
-TAX 17,000
NI 49,000

EBT 1,200,000
-TAX(34%) 408000
NI 792,000
-PD 50,000
EACS 742,000

EPS 7.42

BEG 670,000
+NI -100,000
-CSD 10,000
 END 560,000

=560000-670000+10000
-100000

BEG 320,000
+NI 100,000
-CSD 20,000
END 400,000 400,000

=400000-320000-100000
-20000

BEG 220,000
+NI 50,000
-CSD 30,000
END 240,000

BEG 670,000
+NI 100,000
-CSD 210,000
END 560,000 560,000

=560000-670000-100000
-210,000

=2000*((((1+0.08)^10)-1)/0.08)
28,973.12

Problem 4

Discount loan interest only amortization laon

year 1-4 (int) pv=pmt*((1-(1/(1+i)^n))/i)
FV=PV*(1+i)^n 16000 pmt=pv/((1-(1/(1+i)^n))/i)
year 5 =50000/((1-(1/(1+0.08)^5))/0.08)
54000 12,522.82
62,614.11
total repaymen 73,466.40 70000 62,614.11
loan amount 50,000 50,000 50,000
int paid 23,466.40 20,000 12,614.11

year Beg bal payment interest prin red end bal

1 50,000 12,522.82 4000 8,522.82 41,477.18
2 41,477 12,522.82 3318.1744 9,204.65 32,272.53
3 32,273 12,522.82 2581.80275 9,941.02 22,331.52
4 22,332 12,522.82 1786.52137 10,736.30 11,595.22
 5 11,595 12,522.82 927.617482 11,595.20 0

Q1 fv=pv*(1+i)^n
=1000000*(1+0.1)^5
1610510

Q2 m= frequency

fv=pv*(1+i)^n

=6000*(1+(0.08/2))^(2*2)
7,019.15

yes, he will have enough mony to buy the scooter

Q3 fv=pv*(1+i)^n

=70000*(1+0.08)^5
102,853

Q4 Choice X - 1,000,000 (NOW)

Choice Y - 1,750,000 (END OF 5 YEARS)

PV (BRING THE Y TO PV)

= 1750000/(1+0.05)^5
PV OF Y 1,371,170.79

PV OF X 1,000,000

FV (BRING THE X TO FV)

=1000000*(1+0.05)^5
FV OF X 1,276,281.56

FV OF Y 1,750,000

Based on PV and FV choose Y

Q5 PV=PMT/R

=20000/0.07
285,714

Q6 FVIFA, PVIFA

FVIFA= PMT*(((1+i)^n)-1)/i
 =2000*(((1+0.12)^20)-1)/0.12
144,104.88

Q7 FVIFA (annuity due)

FVIFA= (PMT*(((1+i)^n)-1)/i)*(1+i)

=(10000*(((1+0.12)^5)-1)/0.12)*(1+0.12)
71,152

Q8 FVIFA= PMT*(((1+i)^n)-1)/i
=2000*(((1+0.12)^10)-1)/0.12
35,097.5

Q9 i or interest rate increase the PV will decrease

if i=10% if i=20%
=1/(1+0.1) =1/(1+0.2)
0.91 0.83

Q10 PVIFA=PMT*(((1-(1/(1+i)^n))/i)

=350*(((1-(1/(1+0.04)^5))/0.04))
1,558.14

Q11 PV=PMT/R

=150000/0.05
3,000,000

Q12 BEGINNING OF EACH YEAR = ANNUITY DUE

FVIFA = (PMT*((((1+i)^n)-1)/i))*(1+i)

=(2000*(((1+0.08)^20)-1)/0.08)*(1+0.08)
98,846

Q13 PV=PMT/R

=10000/0.06
166,667

Q14 PVIFA=PMT*(((1-(1/(1+i)^n))/i)

=3900*(((1-(1/(1+0.1)^4))/0.1))
12,362.5
 Q15 PVIFA=PMT*(((1-(1/(1+i)^n))/i)

=960.43*(((1-(1/(1+0.08)^7))/0.08))
5,000

Additional question (chapter 3&4)

Q1 FV=PV*(1+i)^n

=18325*(1+0.0475)^2.5
20,579.23

Q2 FV=PV*(1-i)^n

=2300*(1-0.09)^3
1,733.21

Q3 PV=FV/(1+i)^n

=10000/(1+0.03875)^15
5,654

Q4 PV=FV/(1+i)^n

=20000/(1+0.04125)^3
17,716

Q5 g=((fv/pv)^(1/n))-1

=((1.84/1.15)^(1/7))-1
6.94%

Q6 N= IN(FV/PV)/IN(1+i)

=IN(100,000/38,000)/IN(1+0.12)
=8.54

Q7 Rule 72

n=72/i

=72/12
6