a. b. Quick ratid Cash ratio ion ratios Asset SHOW ALL WORK ONCLUDING CALCULATOR WONK AND TIME LINES FOR FULL CREDIT BUSINESS FINANCE FIN 3200 ASSIGNMENT #3 Caleulating Future Values Compute the future vahue ot S1.000 compounded annually for a. 10 years at 6 percent. A 10 years at 12 percent. e 20 years at 6 percent. d. Why is the interest earmed in part (e) not twice the amount earned in pirt ( 2 Caleulating Present Values For each of the following, compute the pre valu Present Value Years Interest Rate Future Value $ 13.27 13 IS 43,852 725.380 590,710 17 -26 18 Calculating Interest Rates Sclve for the unknown interest rate in each of the following: Present Value Years Interest Rate Future Valuo $ 242 345 410 8. 927 51,700 18,750 16 152,184 27 538,600 Calculating the Number of Periods Solve for the unknown number of years in cach of the following: Future Value Present Value Years Interest Rate $ 1,284 $ 625 4,341 12 BI0 402,662 147,350 17 16,500. 21,500 Calculating the Number of Periods At 6.5 percent interest, how long does it take to double your money? To quadruple it? Calculating Present Values Imprudential, Inc., has an unfunded pension liability of $550 million that must be paid in 20 years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.4 percent, what is the present value of this liability? For each of the following, compute the future value: Calculating Future Values. Future Value Interest Rate Years Present Value 18% $ 2,250 9,310 12 15 76,355 21 183,796 Calculating Present Values. For each of the following, compute the present value: Present Value Years Interest Rate Future Value $ 15,451 12 16 22 06.073 25 20 550,164 Calculating Interest Rates. following: Solve for the unknown interest rate in each of the Years Present Value Interest Rate Future Value $ 221 3. 307 425 761 25,000 15 136,771 40,200 30 255,810 Calculating the Number of Periods. each of the following: 10 Solve for the unknown number of years in Future Value Present Value Years Interest Rate $ 1,284 4,341 24 250 1,941 402,662 23 21,320 173,439 34 32,500 Calculating Interest Rates. $250,000 when your child enters college in 18 years. You presently have $25,000 to invest. What annual rate of interest must you earn on your investment to cover the cost of your child's college education? Calculating the Number of Periods. At 10 percent interest, how long does it take to double your money? To quadruple it? Assume the total cost of a college education will be 11 12
