Chapter 4 Problems 3,5,8,9,11,13,14,15,17,19,21,23,29,30,31,33,35,37,39, and 42

Can you please provide me with step by step on how you solved each problem Basic Problems

4-1 Time Line Show the time line for a $500.00 cash inflow today, a $605.00 cash outflow in year 2, and a 10 percent interest rate? (LG4-1).

4.5 Multiyear Future Value how much would be in your savings account in 11 years after depositing $150.00 today if the bank pays 8 percent per year?(LG4-3).

4.8 Compounding with Different Interest Rates A deposit of $750.00 earns interest rates of 9 percent in the first year and 12 percent in the second year. What would be the second year future value? (LG4-3).

4.9 Discounting One Year what is the percent value of a $350.00 payment in one year when the discount rate is 7 percent? (LG4-4).

4-11 Present Value - What is the present value of a $1,500 payment made in nine years when the discount rate is 8 percent? (LG4-4).

4-13 Present value with different discount rates Compute the present value of $1,000 paid in three years using the following discount rates: 6 percent in the first year, 7 percent in the second year, and 8 percent in the third year (LG4-4). Intermediate Problems

4-14 Present value with different discount rates compute the present value of $5000 paid in two years using the following discount rates; 8 percent in the first year and 7 percent in the second year (LG4-4).

4-15 - Rule of 72 approximately how many years are needed to double a $100 inventory when interest rates are 7 percent each year? (LG4-6).

4-17 Rule of 72 Approximately what interest rate is needed to double an investment over 5 years? (LG4-6).

4-19 Rates over One Year Determine the interest rate earned on a $1,400 deposit when $1,800 is paid back in one year? (LG4-7).

4-21 Interest on Interest Consider a $2, 000 deposit earning 8 percent per year for five years. What is the future value, and how much total interest is earned on the original deposit versus how much is interest earned on interest? (LG4-3).

4-23- Comparing Cash Flows What would be more valuable, receiving $500.00 today or receiving $625.00 in three years if the interest rates are 7 percent? (LG4-5).

4-29 Solving for Rates What annual rate of return is earned on a $1,000 investment when it grows to $1,800 in six years? (LG4-7). 4-30 Solving for Rates What annual rate of return is earned on a $5,000 investment when it grows to $9,500 in five years? (LG4-7).

4-31 Solving for Time How many years (and months) will it take $2 million to grow to $5 Million with an annual interest rate of 7 percent? (LG4-8). Advanced Problems

4-33 Future Value At age 30 you invest $1,000 that earns 8 percent each year. At age 40 you invest $1,000 that earns 12 percent per year. In which case would you have more money at age 60? (LG4-2).

4-35 Solving for Rates - You invested $2,000 in the stock market one year ago. Today, the investment is valued at $1,500. What returns did you earn? What return would you need to get next year to break even overall? (LG4-7).

4-37 Solving for Rates What annual rate of return is earned on a $4,000 investment made in your 2 when it grows to $6,500 by the end of the year? (LG4-7).

4-39 General TVM Ten years ago, Hailey invested $2,000 and locked in a 9 percent annual interest rate for 30 years (ending 20 years from now). Aidan can make a 20 year investment today and lock in a 10 percent interest rate. How much money should he invest now in order to have the same amount of money in 20 years as Hailey? (LG4-2, LG4-4).