答案和详解如下： Q6. What is the present value of a 10-year, $100 annual annuity due if interest rates are 0%? A) $900. B) $1,000. C) No solution. Correct answer is B) When I/Y = 0 you just sum up the numbers since there is no interest earned. Q7. Justin Banks just won the lottery and is trying to decide between the annual cash flow payment option or the lump sum option. He can earn 8% at the bank and the annual cash flow option is $100,000/year, beginning today for 15 years. What is the annual cash flow option worth to Banks today? A) $855,947.87. B) $924,423.70. C) $1,080,000.00. Correct answer is B) First put your calculator in the BGN. N = 15; I/Y = 8; PMT = 100,000; CPT → PV = 924,423.70. Alternatively, do not set your calculator to BGN, simply multiply the ordinary annuity (end of the period payments) answer by 1 + I/Y. You get the annuity due answer and you don’t run the risk of forgetting to reset your calculator back to the end of the period setting. OR N = 14; I/Y = 8; PMT = 100,000; CPT → PV = 824,423.70 + 100,000 = 924,423.70. Q8. If an investor puts $5,724 per year, starting at the end of the first year, in an account earning 8% and ends up accumulating $500,000, how many years did it take the investor? A) 87 years. B) 26 years. C) 27 years. Correct answer is C) I/Y = 8; PMT = -5,724; FV = 500,000; CPT → N = 27. Remember, you must put the pmt in as a negative (cash out) and the FV in as a positive (cash in) to compute either N or I/Y. | 
发表于 2008-12-29 17:12
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