 # Quantitative Techniques in Financial Valuation Problem Set, math homework help Anonymous
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12 problems on excel sheet

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Instructions: Week 5 Individual Assignment Total Number of Questions - 12 Total Points: 6 1. You have twelve problems - on each tab of this Excel file. 2. Please show your work in the cells. Use Excel formulas instead of writing the values/answers directly in the cell. The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if appropria back and partial credit (if appropriate). Find the interest paid on a loan of \$1,200 for three years at a simple interest rate of 5% per year. How much money will you pay after three years? Principal Rate Time \$1.200 5% 3 Simple Interest (SI) Maturity Value =PRODUCT(B4:B6) =Principal + SI Find the maturity value of a loan of \$1,750 for 28 months at 9.8% simple interest per year. Principal Rate Time Simple Interest (SI) Maturity Value -- Please make sure that the time periods for Time and Rate match. =PRODUCT(B3:B5) =Principal + SI Find the simple interest rate of a loan of \$5,000 that is made for three years and requires \$1,762.50 in interest. Principal Time SI Rate 762.50 in interest. A loan of \$16,840 is borrowed at 9% simple interest and is repaid with \$4,167.90 interest. What is the duration of the loan? Principal Rate SI Time How much money is borrowed if the interest rate is 9.25% simple interest and the loan is made for 3.5 years and has \$904.88 interest? SI Rate Time Principal Find the ordinary and exact interest for a loan of \$1000 at a 5% annual interest rate. The loan was made on March 15 and is due May 15. Loan date Loan Due Date Exact time days =B5-B4 Principal Rate Time Loan date Loan Due Date Exact time days Principal Rate Time Ordinary Simple Interest (SI) Exact Simple Interest (SI) =PRODUCT(B8:B10) =PRODUCT(G8:G10) =G5-G4 =PRODUCT(G8:G10) Find the bank discount and proceeds using ordinary interest for a loan to Michelle Anders for \$7,200 at 8.25% annual simple interest from August 8 to November 8. Loan date Loan Due Date Exact time days Face Value (F) Discount Rate (D) Time Period (T) Bank Discount (B) years --> 'Convert Exact time in days to years =PRODUCT(B8:B10) OR =B8*B9*B10 Proceeds (P) =B8-B11 =B5-B4 What is the effective interest rate of a simple discount note for \$8,000, at an ordinary bank discount rate of 11%, for 120 days? Face Value (F) Discount Rate (D) Time Period (T) Bank Discount (B) years --> 'Convert Exact time in days to years =PRODUCT(B4:B6) OR =B4*B5*B6 Proceeds (P) =B4 - B7 Rate =B7/PRODUCT(B9, B6) SOLVED EXAMPLE What is the effective interest rate for the ﬁrst year for a loan of \$20,000 for three years if the interest is compounded quarterly at a rate of 12%? Quoted Rate 12,00% quarterly No. of compounding periods per year EAR 4 For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo 12,55% =EFFECT(B5, B6) 1. Ross Land has a loan of \$8,500 compounded quarterly for four years at 6%. What is the effective interest rate for the ﬁrst y Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B11, B12) 2. Find the effective interest rate for the ﬁrst year for a loan for four years compounded semiannually at an annual rate of 2% Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B19, B20) 3. What is the effective interest rate for the ﬁrst year for a loan of \$5,000 at 10% compounded daily for three years? Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B23, B24) 4. Depending on the issuer, a typical credit card agreement quotes an interest rate of 18 percent APR. Monthly payments are What is the actual interest rate you pay on such a credit card? Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B30, B31) 5. Find the effective interest rate for a loan of \$3,500 at 10% interest compounded quarterly. Quoted Rate No. of compounding periods per year EAR For Quarterly, type 4; for semiannually, type 2; for annually, type 1; for monthly, type 12; fo =EFFECT(B36, B37) SOLVED EXAMPLE Tim Bowling has \$20,000 invested for three years at a 5.25% annual rate compounded daily. How much interest will he earn? Initial Investment (PV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Ending Amount (FV) Compound Interest \$20.000 5,25% Daily 365 0,0144% 3 1095 \$23.411,35 \$3.411,35 Choose one For Quarterly, type 4; for semiannually, type 2; for a Exercise Find the future value of a \$15,000 money market investment at 2.8% annual interest compounded daily for three years. Initial Investment (PV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Ending Amount (FV) Compound Interest Choose one For Quarterly, type 4; for semiannually, type 2; for a for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 for semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 SOLVED EXAMPLE The Holiday Boutique would like to put away some of the holiday profits to save for a planned expansion. A total of \$8,000 is needed in three years. How much money in a 5.2% three-year certificate of deposit that is compounded monthly must be invested now to have the \$8,000 in three years? Future Value Needed (FV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Amount Invested Now (PV) \$8.000 5,2% Monthly 12 0,4333% 3 36 \$6.846,78 Choose one For Quarterly, type 4; for semiannually, type 2; for a Exercise How much should be invested now to have \$15,000 in six years if interest is 4% compounded quarterly? Future Value Needed (FV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Amount Invested Now (PV) Choose one For Quarterly, type 4; for semiannually, type 2; for a r semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 r semiannually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 Jamie Juarez needs \$12,000 in 10 years for her daughter’s college education. How much must be invested today at 2% annual interest compounded semiannually to have the needed funds? Future Value Needed (FV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Amount Invested Now (PV) Choose one For Quarterly, type 4; for semiannually, type 2; for annually, ty A loan of \$8,000 for two acres of woodland is compounded quarterly at an annual rate of 6% for ﬁve years. Find the compound amount and the compound interest. Initial Investment (PV) Quoted Rate Compounding Frequency Number of compoundings (m) Quoted Rate divided by m = RATE Number of Years NPER (Num. of years * m) Ending Amount (FV) Compound Interest Choose one For Quarterly, type 4; for semiannually, type 2; for annually, ty ually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 ually, type 2; for annually, type 1; for monthly, type 12; for daily, type 365 ...
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JamesM847
School: Duke University   Hi Please check the attached file for detail, let me know if you have any questions, thank youBest, James

Instructions:
Week 5 Individual Assignment
Total Number of Questions - 12
Total Points: 6

1. You have twelve problems - on each tab of this Excel file.
The instructor will then know where you made a mistake and provide you valuable feedback and partial credit (if appropria

back and partial credit (if appropriate).

Find the interest paid on a loan of \$1,200 for three years at a simple interest rate of 5% per year.
How much money will you pay after three years?
Principal
Rate
Time

\$1.200
5%
3

Simple Interest (SI)
Maturity Value

\$180 =PRODUCT(B4:B6)
\$1.380 =Principal + SI

Find the maturity value of a loan of \$1,750 for 28 months at 9.8% simple interest per year.
Principal
Rate
Time

\$1.750
9,80%
2,33 -- Please make sure that the time periods for Time and Rate match.

Simple Interest (SI)
Maturity Value

\$400 =PRODUCT(B3:B5)
\$2.150 =Principal + SI

Find the simple interest rate of a loan of \$5,000 that is made for three years and requires \$1,762.50 in interest.
Principal
Time
SI
Rate

\$5.000
3,00
\$1.762,50
11,75%

762.50 in interest.

A loan of \$16,840 is borrowed at 9% simple interest and is
repaid with \$4,167.90 interest. What is the duration of the loan?
Principal
Rate
SI
Time

\$16.840
9,00%
\$4.167,90
2,75

How much money is borrowed if the interest rate is 9.25% simple interest
and the loan is made for 3.5 years and has \$904.88 interest?
SI
Rate
Time
Principal

\$904,88
9,25%
3,50
\$2.795,00

Find the ordinar...

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