Bài tập Chương 2

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EX1:

a) If you invest $100 at an interest rate of 15%, how much will you have at the end of eight years?

b) If the PV of $139 is $125, what is the discount factor?

c) If the cost of capital is 9%, what is the PV of $734 paid in year 9?

d) If the interest rate is 10.5%, what is the two-year discount factor?

e) How many dollars is $507 worth in six years if invested at 12%?

f) How many dollars is $600 worth in six years if the six-year discount factor is 0.507?

EX2: You has won the prize of $100,000 to be paid the whole amount after 3 years. At the same time, you receive an offer of $80,000 to sell the right of receiving that prize. If the market interest rate is 12% and the interest is compounded annually. Whether the offer should be accepted or not?

EX3: You are quoted an interest rate of 6% on an investment of $10 million. What is the value of your investment after four years if interest is compounded:

a)  Annually?

b)  Quarterly?

c)  Monthly?

EX4: If you want to have $500 after 6 years, which of the following choices should you choose:

a)  At 8% compounded annually

b)  At 7.75% compounded semi-annually

c)  At 7.5% compounded quarterly

d)  At 7.25% compounded monthly