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Part 2.1. Financial Functions in Excel

Here are the steps to solve these questions: Question 1: Cash Flows: -2000, 1000, 800, 800, 800 Required Rate: 12% NPV = -2000 + 1000/(1.12) + 800/(1.12)^2 + 800/(1.12)^3 + 800/(1.12)^4 = -2000 + 893.75 + 641.07 + 571.43 + 514.29 = 620.54 Therefore, the NPV of the investment is $620.54 Question 2: Cash Flows: -2000, 1000, 800, 800, 800 IRR is the discount rate that makes NPV =

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164 views

Part 2.1. Financial Functions in Excel

Here are the steps to solve these questions: Question 1: Cash Flows: -2000, 1000, 800, 800, 800 Required Rate: 12% NPV = -2000 + 1000/(1.12) + 800/(1.12)^2 + 800/(1.12)^3 + 800/(1.12)^4 = -2000 + 893.75 + 641.07 + 571.43 + 514.29 = 620.54 Therefore, the NPV of the investment is $620.54 Question 2: Cash Flows: -2000, 1000, 800, 800, 800 IRR is the discount rate that makes NPV =

Uploaded by

Duyen Nguyen
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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No.

Result
The value in six years of $75,000 invested today at a
Question 1 stated annual interest rate of 7% compounded quarterly 113,733.209
is closest to:
A client requires £100,000 one year from now. If the
Question 2 stated annual rate is 2.50% compounded weekly, the (97,531.58)
deposit needed today is closest to:
For a lump sum investment of ¥250,000 invested at a
stated annual rate of 3% compounded daily, the number
Question 3 of months needed to grow the sum to ¥1,000,000 is 554.541
closest to:

An investment of €500,000 today that grows to €800,000


Question 4 after six years has a stated annual interest rate, 7.86%
compounded monthly, closest to:
Given a stated annual interest rate of 6% compounded
quarterly, the level amount that, deposited quarterly, will
Question 5 grow to £25,000 at the end of 10 years is closest to: -4538.69

You are planning to purchase a $120,000 house by making


a down payment of $20,000 and borrowing the remainder
with a 30-year fixed-rate mortgage with monthly
payments. The first payment is due at t = 1. Current
Question 6 mortgage interest rates are quoted at 8 percent with (₫733.76)
monthly compounding. What will your monthly mortgage
payments be?

A sports car, purchased for £200,000, is financed for five


years at an annual rate of 6% compounded monthly. If the
Question 7 first payment is due in one month, the monthly payment (₫3,866.56)
is closest to:

A bank quotes a stated annual interest rate of 4.00%,


Question 8 compounded quarterly. The effective annual rate is
closest to:
An investment pays €300 annually for five years, with the
first payment occurring today. The present value (PV) of
Question 9 the investment discounted at a 4% annual rate is closest (1,388.969)
to:

Suppose your company’s defined contribution retirement


plan allows you to invest up to €20,000 per year. You plan
Question 10 to invest €20,000 per year in a stock index fund for the (2,726,150.771)
next 30 years. Historically, this fund has earned 9 percent
per year on average. Assuming that you actually earn 9
percent a year, how much money will you have available
for retirement after making the last payment?
A perpetual preferred stock makes its first quarterly
dividend payment of $2.00 in five quarters. If the required
Question 11 Pv at the end of 4th quarter:
annual rate of return is 6% compounded quarterly, the
stock’s present value is closest to:

Consider a level perpetuity of £100 per year with its first


Question 12 payment beginning at t = 5. What is its present value
today (at t = 0), given a 5 percent discount rate?

Grandparents are funding a newborn’s future university


tuition costs, estimated at $50,000/year for four years,
Question 13 with the first payment due as a lump sum in 18 years. PV of tuition fees at t = 18
Assuming a 6% effective annual rate, the required deposit
today is closest to:

A client plans to send a child to college for four years


starting 18 years from now. Having set aside money for
tuition, she decides to plan for room and board also. She
Question 14 estimates these costs at $20,000 per year, payable at the PV of tuition feea a
beginning of each year, by the time her child goes to
college. If she starts next year and makes 17 payments
into a savings account paying 5 percent annually, what
annual payments must she make?

A bond offers an annual coupon rate of 4%, with interest


paid semiannually. The bond matures in two years. At a
Question 15 market discount rate of 6%, the price of this bond per 100
of par value is closest to:
PV In racket: in opti end of period - type = 0

PV

PMT

RATE
133.333333333 -125.62456404

$183,650.60 -64340.846562

($74,464.96)
A sports car, purchased for £200,000, is financed for five years at an
annual rate of 6% compounded monthly. If the first payment is due in one
year, the monthly payment is closest to:

Beginning
Payment No
Balance
1 200000
2 164520.72
3 126912.68
4 87048.16
5 44791.77

Phone Price 29290000


Prepayment 30%
Loan Amount
20503000
Interest Rate 1.93%
Months 12

Payment No Beginning
Balance
1 20503000
2
3
4
5
6
7
8
9
10
11
12
Beginning
Payment No
Balance
1 20503000
2
3
4
5
6
7
8
9
10
11
12

Beginning
Payment No Balance
1 20503000
2
3
4
5
6
7
8
9
10
11
12
Principal Interest Total Monthly Ending
Payment Payment Payment Balance
35479.28 12000 47479.28 164520.72 no care positive or nagative
37608.04 9871.2431948 47479.28 126912.68
39864.52 7614.7609813 47479.28 87048.16
42256.39 5222.889835 47479.28 44791.77
44791.77 2687.50642 47479.28 0

Reducing
Balance ($1,930,430.36) Theo dư nợ giảm dần
Website 2104000 Phương pháp tính tiền phải trả theo dư nợ gốc
Monthly Princi 1708583.33333
Monthly Interest
Total
Principal Interest Total Monthly Ending Flat Rate
Payment Payment Payment Balance
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
1708583.33
Principal Interest Total Monthly Ending Unequal
Payment Payment Payment Balance Payment
395707.9
0

Principal Interest Total Monthly Ending Reducing


Payment Payment Payment Balance Balance
heo dư nợ gốc
Calculate NPV of an investment with
Question 1 the cash flows and required rate of Year 0 1 2
12%.
Question 2 Calculate IRR of the above investment Cash Flows -2,000 1000
Calculate price of Bond A today,
Question 3
described in the exhibit below:
Par value $ 100.00
Settlement Date 5/18/2021
Maturity Date 10/10/2016
Annual Yield-to-Maturity 4%
Annual Coupon Rate 5.00%
Coupon Payment Per Year 1
Day Count Convention Actual/Actual
3 4 5

800 800

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