FUNDAMENTOS FINANZAS MERCARTILES UN ENFOQUE GERENCIAL

FINA 503 CRN 202201, 222202 202203 PT 122, 123 PRESENCIAL Y EN LINEA

DR. CARLOS F ROSA VZQUEZ

VALOR DEL DINERO EN EL TIEMPO -TIME VALUE OF MONEY

EJERCICIOS PARA ENTREGAR X. GENERAL INSTRUCTIONS:

1. Exercises to perform them individually. So you can demonstrate mastery of the material.

2. Write the formula used and its development.

3. Use four decimal places. Convert to dollars and cents, or %, whatever the requested response.

4. Emphasize circulating (or other way) the answer, for each required, if there is more than one.

I. SIMPLE INTEREST:

1. How much is the accumulated amount and simple interest of $17,570; at 6.385% for the space of seven years and ten months?

2. Find the difference between exact simple interest and ordinary simple interest when calculating $15,780 to 8.55% per 60-day space?

3. If you deposit $42,850 at what %, would you accumulate an amount of $67,165.25 in seven years?

II. COMPOSITE INTEREST: (annual and parts of the year)

1. Find the amount and compound interest of $55,720 to 5.375% per space of 10 years calculated:

A. annually

B. biannually

C. quarterly

D. monthly

E. continuously

2. How much money do you need to deposit in your investment account?

To have $100,000 after twenty-five years at 5.45% interest calculated annually?

III. PRESENT VALUE AND OTHERS:

1. Find the net present value of an inheritance to be received within 25 years of $50,125 discounted today at 4.875%.

2. If you accept the answer from # 1 above, what interest or greater would be accepted today to reach $145,000 in 20 years.

3. The property you bought 16 years ago for $185,000 is worth $230,000 today. What is the rate of return on your investment?

4. Joe Doe deposited $26,100 in his savings account. The interest rate is 3% compound annually. How many years will it take for the investment to reach $45,000?

5. You have deposited $200,000 in equity investments, after three years, the investment balance is $180,900. What and how much has been the rate of return?

IV. ANNUITIES:

1. If you and your partner decide to open an IRA of $5,000 per year each. You are offered a 5 12% annual interest for 35 years. How much will be the amount and accumulated interest of the annuity?

V. PRESENT VALUE OF AN ANNUITY:

1. You are lucky to stick with the Lotus. The prize is 3 million. You have the option (1) to receive a single amount once, (2) receive an identical annuity each year, for 20 years. Ignore the tax. Discount rate 3.5%

1. What is the present value of option (1)?

2. What is the present value of option (2)?

3. Which one would you select and why?

Remember to consult the Evaluation Heading for this work for as many points as possible. Value: 50% of the second grade