Exercise for TVM货币时间价值练习.docVIP

Exercise for TVM 1. Simple interest versus compound interest. 1st Simpleton Bank pays 5% simple interest on its savings account balances, while 1st Complexity Bank pays 5% interest compounded annually. If you made a ￡10000 deposit in each bank, how much additional money would you earn from your 1st Complexity Bank account at the end of 12 years? ￡10000*(S/P,5%,12)=￡10000*1.7959=￡17959 ￡10000*(1+5%*12)=￡16000 ￡17959-￡16000=￡1959 2. Calculating future value: for each of the following, compute the future value: Present value Years Interest rate Future value ￡570 15 9% ￡2076.22 ￡8922 9 18% ￡39573.12 ￡61133 3 12% ￡85887.46 ￡219850 10 4% ￡325431.71 3. Calculating present value: for each of the following, compute the present value. Future value Years Interest rate Present value ￡349 5 6% ￡260.81 ￡5227 20 2% ￡3517.77 ￡48950 12 25% ￡3363.82 ￡612511 7 33% ￡83205.57 4. What’s the value today of ￡1250 to be received 3 years from now, assuming a 12% discount rate. ￡1250*(P/S,12%,3)=￡1250*0.7118=￡889.75 5. What would be the present value today of ￡1250 to be received 3 years from now, assuming a 12% discount rate and quarterly compounding. ￡1250*(P/S,12%/4,3*4)=￡1250*0.7014=￡876.75 6. How much will be in an account earning 10% at the end of 5 years if ￡100 is deposited today? ￡100*(S/P,10%,5)=￡100*1.6105=161.05 7. How much will be in an account earning 8% at the end of 5 years if ￡100 is deposited today, assuming quarterly compounding? ￡100*(S/P,8%/4,5*4)=￡100*1.4859=￡148.59 8. What is the present value of a lump sum of ￡300 that will be paid at the end of the fifth year, assuming that the interest rate is 10%? ￡300*(P/S,10%,5)=￡300*1.6105=￡483.15 9. What is the future value after 5 years of ￡1000 that is placed in a saving s account today that pays interest quarterly, assuming an annual interest rate of 8%? ￡1000*(S/P,8%,5)=￡1000*1.4693=￡1469.3 10. What is the effective annual interest rate for an account that pays interest quarterly at the annual rate of 8%? 11. Wha