Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Application Time! 1) You will type the TVM inputs in the table provided from the "Info Sheet". 2)
Mirror the inputs from the "Info Sheet" to the TVM cells provided. 3) Within the TVM cells, if needed,
compound. 4) In the "ANSWER" cell show us your TVM calculation.
Goal 1: Opened an account with $1500, with the hope to have a total of $2500 saved in an
LG2-Q8 emergency fund within one year (no additional payments).
What would the quarterly interest rate be needed to reach this goal?
Goal 2: A credit card balance of $2000 with an 15% rate. The goal is to pay off the credit card
LG2-Q9 by the end of the year. (future is a $0 balance)
What would be the monthly payment to reach this goal?
Goal 3: Student loan balance of $18,000 at 6.5% and making $425 monthly payments. (future
LG2-Q10 is a $0 balance)
How many months will it take to complete this goal?
in fuo (no
Compounding Number
(select from dropdown)
4
Compounding Number
(select from dropdown)
12
Compounding Number
(select from dropdown)
12
Note: RATE=% / Compounding #
3.5%
5.74%
RATE
RATE
RATE
5
Note: NPER*
Compounding #
4
NPER
NPER
NPER
0
0
PMT
PMT
PMT
PV
$6,000.00
PV
$3,200.00
PV
$
FV
7,126.12
FV
$4.000.00
FV
FY
ANSWER
#N/A
ANSWER
#N/A
ANSWER
#N/A
ANSWER
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Transcribed Image Text:Application Time! 1) You will type the TVM inputs in the table provided from the "Info Sheet". 2) Mirror the inputs from the "Info Sheet" to the TVM cells provided. 3) Within the TVM cells, if needed, compound. 4) In the "ANSWER" cell show us your TVM calculation. Goal 1: Opened an account with $1500, with the hope to have a total of $2500 saved in an LG2-Q8 emergency fund within one year (no additional payments). What would the quarterly interest rate be needed to reach this goal? Goal 2: A credit card balance of $2000 with an 15% rate. The goal is to pay off the credit card LG2-Q9 by the end of the year. (future is a $0 balance) What would be the monthly payment to reach this goal? Goal 3: Student loan balance of $18,000 at 6.5% and making $425 monthly payments. (future LG2-Q10 is a $0 balance) How many months will it take to complete this goal? in fuo (no Compounding Number (select from dropdown) 4 Compounding Number (select from dropdown) 12 Compounding Number (select from dropdown) 12 Note: RATE=% / Compounding # 3.5% 5.74% RATE RATE RATE 5 Note: NPER* Compounding # 4 NPER NPER NPER 0 0 PMT PMT PMT PV $6,000.00 PV $3,200.00 PV $ FV 7,126.12 FV $4.000.00 FV FY ANSWER #N/A ANSWER #N/A ANSWER #N/A ANSWER
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