Financial Analysis

Course Syllabus

FIN 540X

Managerial Finance

Text: Eugene Brigham and Michael Ehrhardt, Financial Management: Theory and

Practice, 13Th edition, 2010, South-Western Cengage Learning ISBN #9781111227562.

Problem 4-1 Future Value of a Single Payment

 If you deposit $15,000 in a bank account that pays 3.5% interest annually, how much would be in your account after 9 years? Round your answer to the nearest cent.

$  

Problem 4-2 Present Value of a Single Payment

What is the present value of a security that will pay $5,000 in 10 years if securities of equal risk pay 4% annually? Round your answer to the nearest cent.

$  

Problem 4-3 Interest Rate on a Single Payment.

Your parents will retire in 19 years. They currently have $290,000, and they think they will need $1 million at retirement. What annual interest rate must they earn to reach their goal, assuming they don't save any additional funds? Round your answer to two decimal places.

 %

Problem 4-4 Number of Periods of a Single Payment.

If you deposit money today in an account that pays 4.5% annual interest, how long will it take to double your money? Round your answer to the nearest whole.

 years

You have $47,290.58 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $375,000. You expect to earn 7.7% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole.

 years

Problem 4-6 Future Value: Ordinary Annuity versus Annuity Due.

What's the future value of a 5%, 10-year ordinary annuity that pays $400 each year? Round your answer to the nearest cent.$  

If this were an annuity due, what would its future value be? Round your answer to the nearest cent.$  

Problem 4-7

Present and Future Value of an Uneven Cash Flow Stream.

An investment will pay $100 at the end of each of the next 3 years, $300 at the end of Year 4, $600 at the end of Year 5, and $700 at the end of Year 6. If other investments of equal risk earn 8% annually, what is its present value? Round your answer to the nearest cent.$  

What is its future value? Round your answer to the nearest cent.$  

Problem 4-8 Annuity Payment and EAR

You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? Round your answer to the nearest cent. $  

What is the loan's EFF%? Round your answer to two decimal places. %

Problem 4-9 Present and Future Values of Single Cash Flows for Different Periods

 Find the following values using a financial calculator. Round your answers to the nearest cent. (Hint: Using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the ...