5-12 These problems can all be solved using a financial calculator by entering the known values shown on the time lines and then pressing the I/YR button. a. 0 1 | | +700 -749 With a financial calculator, enter: N = 1, PV = 700, PMT = 0, and FV = -749. I/YR = 7%. b. 0 1 | | -700 +749 With a financial calculator, enter: N = 1, PV = -700, PMT = 0, and FV = 749. I/YR = 7%. c. 0 10 | | +85,000 -201,229 With a financial calculator, enter: N = 10, PV = 85000, PMT = 0, and FV = I/YR = 9%. d. 0 1 2 3 4 5 | | | | | | +9,000 -2,684.80 -2,684.80 -2,684.80 -2,684.80 -2,684.80 With a financial calculator, enter: N = 5, PV = 9000, PMT = -2684.80, and FV = 0. I/YR = 15%. 5-13 a. ? | | -200 400 With a financial calculator, enter I/YR = 7, PV = -200, PMT = 0, and FV = 400. Then press the N key to find N = 10.24. Override I/YR with the other values to find N = 7.27, 4.19, and 1.00. b. ? | | Enter: I/YR = 10, PV = -200, PMT = 0, and FV = 400. -200 400 N = 7.27. c. ? | | Enter: I/YR = 18, PV = -200, PMT = 0, and FV = 400. -200 400 N = 4.19. d. ? | | Enter: I/YR = 100, PV = -200, PMT = 0, and FV = 400. -200 400 N = 1.00.
5-12 These problems can all be solved using a financial calculator by entering the known values shown on the time lines and then pressing the I/YR button. a. 0 1 | | +700 -749 With a financial calculator, enter: N = 1, PV = 700, PMT = 0, and FV = -749. I/YR = 7%. b. 0 1 | | -700 +749 With a financial calculator, enter: N = 1, PV = -700, PMT = 0, and FV = 749. I/YR = 7%. c. 0 10 | | +85,000 -201,229 With a financial calculator, enter: N = 10, PV = 85000, PMT = 0, and FV = I/YR = 9%. d. 0 1 2 3 4 5 | | | | | | +9,000 -2,684.80 -2,684.80 -2,684.80 -2,684.80 -2,684.80 With a financial calculator, enter: N = 5, PV = 9000, PMT = -2684.80, and FV = 0. I/YR = 15%. 5-13 a. ? | | -200 400 With a financial calculator, enter I/YR = 7, PV = -200, PMT = 0, and FV = 400. Then press the N key to find N = 10.24. Override I/YR with the other values to find N = 7.27, 4.19, and 1.00. b. ? | | Enter: I/YR = 10, PV = -200, PMT = 0, and FV = 400. -200 400 N = 7.27. c. ? | | Enter: I/YR = 18, PV = -200, PMT = 0, and FV = 400. -200 400 N = 4.19. d. ? | | Enter: I/YR = 100, PV = -200, PMT = 0, and FV = 400. -200 400 N = 1.00.
FIN303_Answers_Exam%202.docx