### FIN 100 Week 5 Homework Answer Chapter 9: P6, P9, P10, P11, P12, P13, P15

# Finance Homework

Â

# Review Submission History: Click here to submit your homework

Â ...

- ChapterÂ 9:Â P6,Â P9,Â P10,Â P11,Â P12,Â P13,Â P15 MUST SHOW YOUR WORK

P6. Determine the present values (PVs) if $5,000 is received in the future (i.e., at the end of each indicated time period) in each of the following situations:

a) 5 percent for 10years

b) 7 percent for 7 years

c) 9 percent for 4 years

Â

P9. Assume you are planning to invest $5,000 each year for 6 years and will earn 10% per year. Determine the future value (FV) of this annuity if your first $5,000 is invested at the end of the first year.

Â

P10. Determine Present value (PV) now of an investment of $3,000 made one year from now and an additional $3,000 made 2 years from now if the annual discount is 4%.

Â

P11. What is the present value of a loan that calls for the payment of $500 per year for 6 years if the discount rate is 10% and the first payment will be made 1 year from now? how would your answer change if the $500 per year occurred for 10 years?

Â

P12. Determine the annual payment on a $500,000, 12% business loan from a commercial bank that is to be amortized over a 5 year period.

Â

P13. Determine the annual payment on a $15,000 loan that is to be amortized over a 4 year period and carries a 10% interest rate. Prepare a loan amortization schedule for this loan.

Â

P15. Assume a bank loan requirees an interest payment of $85 per year and a principal payment of $1,000 at the end of the loans 8 year life.

a) at what amount could this loan be sold for to another bank if loans of similar quality carried an 8.5% interest rate? that is, what would be the present value of this loan?

b) Now, if the interest rates on other similar quality loans are 10%, what would be the PV of this loan?

c) what would be the PV of the loan if the interest rate is 8% on similar quality loans?

# Answers

**Status NEW**
**Posted 02 May 2019 03:05 PM**
**My Price 8.00**

FIN----------- 10-----------0 W-----------eek----------- 5 -----------Hom-----------ewo-----------rk -----------Ans-----------wer----------- Ch-----------apt-----------er -----------9: -----------P6,----------- P9-----------, P-----------10,----------- P1-----------1, -----------P12-----------, P-----------13,----------- P1-----------5FI-----------N 1-----------00 -----------Wee-----------k 5----------- Ho-----------mew-----------ork----------- An-----------swe-----------r C-----------hap-----------ter----------- 9:----------- P6-----------, P-----------9, -----------P10-----------, P-----------11,----------- P1-----------2, -----------P13-----------, P-----------15-----------

#### Attachments

file 1556809529-FIN 100 Week 5 Homework Answer.xlsx preview (8 words )

P6-----------aP6-----------bP6-----------cP9-----------P10-----------P11-----------P12-----------P11----------- - -----------cha-----------nge----------- to----------- 10----------- ye-----------ars-----------P13-----------P15-----------aYe-----------arA-----------nnu-----------al -----------pay-----------men-----------tRe-----------mai-----------nin-----------g b-----------ala-----------nce-----------Int-----------ere-----------stP-----------15b-----------P15-----------c
-----------

Not Rated(0)