CHAPTER-8

QUESTION-1:

INT 15%
N 23
V 0.869565217391304
D 0.130434782608696

PV OF ORD ANNUITY 6.39883716526976

PV OF ANNUITY DUE 6.8473700986311

QUESTION-2:

I(12) 9%
i(12)/12 0.0075
v 0.992555831265509

TIME CASH FLOW DISC FACTOR PV

1 20000 0.992555831265509 19851.1166253102
2 20000 0.985167078179165 19703.3415635833
3 20000 0.977833328217533 19556.6665643507
4 20000 0.970554171928073 19411.0834385615
5 20000 0.963329202906275 19266.5840581255
6 20000 0.956158017772978 19123.1603554596
7 20000 0.949040216151839 18980.8043230368
8 20000 0.941975400646987 18839.5080129397
9 20000 0.93496317682083 18699.2635364166
10 20000 0.92800315317204 18560.0630634408
11 20000 0.921094941113687 18421.8988222737
PV 210413.490363498

QUESTION-3:

i 9%

TIME CASHFLOW ACCUMULATION FACTOR AV

1 2000 1.41158161 2823.16322
2 2000 1.295029 2590.058
3 2000 1.1881 2376.2
4 2000 1.09 2180
5 2000 1 2000
SUM 11969.42122

QUESTION-3:
i1 8%
i2 9%
i3 10.25%

time INT RATE CASHFLOW AV

1 8% 1000 1000
2 8% 1000 2080
3 8% 1000 3246.4
4 10.25% 1000 4579.156
5 10.25% 1000 6048.51949
6 10.25% 1000 7668.492737725
7 10.25% 1000 9454.51324334182
8 9% 1000 11305.4194352426
9 9% 1000 13322.9071844144
10 9% 1000 15521.9688310117
SUM

INTEREST EARNED 5521.96883101171

QUESTION-5:

i(12) 5%
i(12)/12 0.00416666666666667 v 0.995850622406639

MONTHLY WITHDRAWAL 244.492810122822

TIME CF DF PV
0 244.492810122822 1 244.492810122822
1 244.492810122822 0.995850622406639 243.478317134761
2 244.492810122822 0.99171846214769 242.468033661173
3 244.492810122822 0.987603447781932 241.461942235193
4 244.492810122822 0.98350550816458 240.460025462432
5 244.492810122822 0.979424572446055 239.46226602068
6 244.492810122822 0.97536057007076 238.468646659598
7 244.492810122822 0.97131343077586 237.47915020043
8 244.492810122822 0.967283084590069 236.493759535697
9 244.492810122822 0.963269461832433 235.51245762891
10 244.492810122822 0.959272493111137 234.535227514268
11 244.492810122822 0.955292109322294 233.562052296366
12 244.492810122822 0.951328241648758 232.592915149908
13 244.492810122822 0.947380821558929 231.627799319411
14 244.492810122822 0.943449780805572 230.666688118915
15 244.492810122822 0.939535051424636 229.7095649317
16 244.492810122822 0.935636565734078 228.756413209991
17 244.492810122822 0.931754256332692 227.80721647468
18 244.492810122822 0.927888056098946 226.861958315034
19 244.492810122822 0.924037898189822 225.920622388416
20 244.492810122822 0.920203716039656 224.983192419999
21 244.492810122822 0.916385443358994 224.049652202489
22 244.492810122822 0.912583014133438 223.119985595839
23 244.492810122822 0.908796362622511 222.194176526977
24 244.492810122822 0.905025423358517 221.272208989521
25 244.492810122822 0.901270131145411 220.354067043506
26 244.492810122822 0.897530421057671 219.43973481511
27 244.492810122822 0.893806228439174 218.529196496375
28 244.492810122822 0.890097488902082 217.622436344938
29 244.492810122822 0.886404138325725 216.719438683755
30 244.492810122822 0.882726112855494 215.820187900835
31 244.492810122822 0.879063348901737 214.924668448965
32 244.492810122822 0.875415783138659 214.032864845442
33 244.492810122822 0.871783352503229 213.144761671809
34 244.492810122822 0.868165994194087 212.260343573586
35 244.492810122822 0.86456364567046 211.379595260003
36 244.492810122822 0.860976244651081 210.502501503737
37 244.492810122822 0.857403729113109 209.629047140651
38 244.492810122822 0.853846037291063 208.759217069528
39 244.492810122822 0.850303107675748 207.892996251812
40 244.492810122822 0.846774879013193 207.030369711348
41 244.492810122822 0.843261290303594 206.171322534123
42 244.492810122822 0.83976228080026 205.315839868006
43 244.492810122822 0.836277790008558 204.463906922496
44 244.492810122822 0.832807757684871 203.61550896846
45 244.492810122822 0.829352123835556 202.770631337886
46 244.492810122822 0.825910828715906 201.929259423621
47 244.492810122822 0.822483812829118 201.091378679125
48 244.492810122822 0.819071016925263 200.256974618215
49 244.492810122822 0.815672382000262 199.42603281482
50 244.492810122822 0.812287849294867 198.598538902726
51 244.492810122822 0.808917360293643 197.774478575328
52 244.492810122822 0.80556085672396 196.953837585389
53 244.492810122822 0.802218280554981 196.136601744786
54 244.492810122822 0.798889573996662 195.322756924268
55 244.492810122822 0.79557467949875 194.512289053213
56 244.492810122822 0.792273539749793 193.705184119382
57 244.492810122822 0.788986097676142 192.90142816868
58 244.492810122822 0.785712296440971 192.101007304909
59 244.492810122822 0.782452079443291 191.303907689536
60 244.492810122822 0.77920539031697 190.510115541447
 61 244.492810122822 0.775972172929763 189.71961713671
62 244.492810122822 0.772752371382337 188.932398808342
63 244.492810122822 0.769545930007306 188.148446946067
64 244.492810122822 0.766352793368272 187.367747996083
65 244.492810122822 0.76317290625886 186.59028846083
66 244.492810122822 0.760006213701769 185.816054898752
67 244.492810122822 0.75685266094782 185.045033924068
68 244.492810122822 0.753712193475007 184.277212206541
69 244.492810122822 0.750584756987559 183.512576471244
70 244.492810122822 0.747470297414997 182.751113498334
71 244.492810122822 0.7443687609112 181.992810122823
244.492810122822

QUESTION-6:

i 7%
i(2)/2 0.035
i(12)/12 0.00575

time CF DF PV
1 125 0.99428 124.29
2 125 0.98860 123.57
3 125 0.98295 122.87
4 125 0.97733 122.17
5 125 0.97174 121.47
6 125 0.96618 120.77
7 125 0.96066 120.08
8 125 0.95517 119.40
9 125 0.94971 118.71
10 125 0.94428 118.03
11 125 0.93888 117.36
12 125 0.93351 116.69
13 125 0.92817 116.02
14 125 0.92287 115.36
15 125 0.91759 114.70
16 125 0.91234 114.04
17 125 0.90713 113.39
18 125 0.90194 112.74
19 125 0.89679 112.10
20 125 0.89166 111.46
21 125 0.88656 110.82
22 125 0.88149 110.19
23 125 0.87645 109.56
24 125 0.87144 108.93
25 125 0.86646 108.31
26 125 0.86151 107.69
27 125 0.85658 107.07
28 125 0.85168 106.46
29 125 0.84681 105.85
30 125 0.84197 105.25
31 125 0.83716 104.64
32 125 0.83237 104.05
33 125 0.82761 103.45
34 125 0.82288 102.86
35 125 0.81818 102.27
36 125 0.81350 101.69
37 125 0.80885 101.11
38 125 0.80423 100.53
39 125 0.79963 99.95
40 125 0.79506 99.38
41 125 0.79051 98.81
42 125 0.78599 98.25
43 125 0.78150 97.69
44 125 0.77703 97.13
45 125 0.77259 96.57
46 125 0.76817 96.02
47 125 0.76378 95.47
48 125 0.75941 94.93
49 125 0.75507 94.38
50 125 0.75075 93.84
51 125 0.74646 93.31
52 125 0.74219 92.77
53 125 0.73795 92.24
54 125 0.73373 91.72
55 125 0.72954 91.19
56 125 0.72537 90.67
57 125 0.72122 90.15
58 125 0.71709 89.64
59 125 0.71300 89.12
60 125 0.70892 88.61
61 125 0.70487 88.11
62 125 0.70084 87.60
63 125 0.69683 87.10
64 125 0.69285 86.61
65 125 0.68888 86.11
66 125 0.68495 85.62
67 125 0.68103 85.13
68 125 0.67714 84.64
69 125 0.67326 84.16
 70 125 0.66942 83.68
71 125 0.66559 83.20
72 125 0.66178 82.72
73 125 0.65800 82.25
74 125 0.65424 81.78
75 125 0.65050 81.31
76 125 0.64678 80.85
77 125 0.64308 80.39
78 125 0.63940 79.93
79 125 0.63575 79.47
80 125 0.63211 79.01
81 125 0.62850 78.56
82 125 0.62491 78.11
83 125 0.62133 77.67
84 125 0.61778 77.22
85 125 0.61425 76.78
86 125 0.61074 76.34
87 125 0.60725 75.91
88 125 0.60377 75.47
89 125 0.60032 75.04
90 125 0.59689 74.61
91 125 0.59348 74.18
92 125 0.59009 73.76
93 125 0.58671 73.34
94 125 0.58336 72.92
95 125 0.58002 72.50
96 125 0.57671 72.09
97 125 0.57341 71.68
98 125 0.57013 71.27
99 125 0.56687 70.86
100 125 0.56363 70.45
101 125 0.56041 70.05
102 125 0.55720 69.65
103 125 0.55402 69.25
104 125 0.55085 68.86
105 125 0.54770 68.46
106 125 0.54457 68.07
107 125 0.54146 67.68
108 125 0.53836 67.30
109 125 0.53528 66.91
110 125 0.53222 66.53
111 125 0.52918 66.15
112 125 0.52615 65.77
113 125 0.52315 65.39
114 125 0.52016 65.02
115 125 0.51718 64.65
116 125 0.51423 64.28
117 125 0.51129 63.91
118 125 0.50836 63.55
119 125 0.50546 63.18
120 125 0.50257 62.82
121 125 0.49969 62.46
122 125 0.49684 62.10
123 125 0.49400 61.75
124 125 0.49117 61.40
125 125 0.48836 61.05
126 125 0.48557 60.70
127 125 0.48279 60.35
128 125 0.48003 60.00
129 125 0.47729 59.66
130 125 0.47456 59.32
131 125 0.47185 58.98
132 125 0.46915 58.64
133 125 0.46647 58.31
134 125 0.46380 57.98
135 125 0.46115 57.64
136 125 0.45851 57.31
137 125 0.45589 56.99
138 125 0.45329 56.66
139 125 0.45069 56.34
140 125 0.44812 56.01
141 125 0.44556 55.69
142 125 0.44301 55.38
143 125 0.44048 55.06
144 125 0.43796 54.74
145 125 0.43545 54.43
146 125 0.43296 54.12
147 125 0.43049 53.81
148 125 0.42803 53.50
149 125 0.42558 53.20
150 125 0.42315 52.89
151 125 0.42073 52.59
152 125 0.41832 52.29
153 125 0.41593 51.99
154 125 0.41355 51.69
155 125 0.41119 51.40
156 125 0.40884 51.10
157 125 0.40650 50.81
158 125 0.40418 50.52
159 125 0.40187 50.23
160 125 0.39957 49.95
161 125 0.39728 49.66
162 125 0.39501 49.38
163 125 0.39275 49.09
164 125 0.39051 48.81
165 125 0.38828 48.53
166 125 0.38606 48.26
167 125 0.38385 47.98
168 125 0.38165 47.71
169 125 0.37947 47.43
170 125 0.37730 47.16
171 125 0.37515 46.89
172 125 0.37300 46.63
173 125 0.37087 46.36
174 125 0.36875 46.09
175 125 0.36664 45.83
176 125 0.36454 45.57
177 125 0.36246 45.31
178 125 0.36039 45.05
179 125 0.35833 44.79
180 125 0.35628 44.53
181 125 0.35424 44.28
182 125 0.35222 44.03
183 125 0.35020 43.78
184 125 0.34820 43.53
185 125 0.34621 43.28
186 125 0.34423 43.03
187 125 0.34226 42.78
188 125 0.34031 42.54
189 125 0.33836 42.29
190 125 0.33643 42.05
191 125 0.33450 41.81
192 125 0.33259 41.57
193 125 0.33069 41.34
194 125 0.32880 41.10
195 125 0.32692 40.86
196 125 0.32505 40.63
197 125 0.32319 40.40
198 125 0.32134 40.17
199 125 0.31951 39.94
200 125 0.31768 39.71
201 125 0.31586 39.48
202 125 0.31406 39.26
203 125 0.31226 39.03
204 125 0.31048 38.81
205 125 0.30870 38.59
206 125 0.30694 38.37
207 125 0.30518 38.15
208 125 0.30344 37.93
209 125 0.30170 37.71
210 125 0.29998 37.50
211 125 0.29826 37.28
212 125 0.29656 37.07
213 125 0.29486 36.86
214 125 0.29318 36.65
215 125 0.29150 36.44
216 125 0.28983 36.23
217 125 0.28818 36.02
218 125 0.28653 35.82
219 125 0.28489 35.61
220 125 0.28326 35.41
221 125 0.28164 35.21
222 125 0.28003 35.00
223 125 0.27843 34.80
224 125 0.27684 34.60
225 125 0.27526 34.41
226 125 0.27368 34.21
227 125 0.27212 34.01
228 125 0.27056 33.82
229 125 0.26902 33.63
230 125 0.26748 33.43
231 125 0.26595 33.24
232 125 0.26443 33.05
233 125 0.26292 32.86
234 125 0.26141 32.68
235 125 0.25992 32.49
236 125 0.25843 32.30
237 125 0.25695 32.12
238 125 0.25549 31.94
239 125 0.25402 31.75
240 125 0.25257 31.57
241 125 0.25113 31.39
242 125 0.24969 31.21
243 125 0.24827 31.03
244 125 0.24685 30.86
245 125 0.24543 30.68
246 125 0.24403 30.50
247 125 0.24264 30.33
248 125 0.24125 30.16
249 125 0.23987 29.98
250 125 0.23850 29.81
251 125 0.23713 29.64
252 125 0.23578 29.47
253 125 0.23443 29.30
254 125 0.23309 29.14
255 125 0.23176 28.97
256 125 0.23043 28.80
257 125 0.22912 28.64
258 125 0.22781 28.48
259 125 0.22650 28.31
260 125 0.22521 28.15
261 125 0.22392 27.99
262 125 0.22264 27.83
263 125 0.22137 27.67
264 125 0.22010 27.51
265 125 0.21884 27.36
266 125 0.21759 27.20
267 125 0.21635 27.04
268 125 0.21511 26.89
269 125 0.21388 26.74
270 125 0.21266 26.58
271 125 0.21144 26.43
272 125 0.21023 26.28
273 125 0.20903 26.13
274 125 0.20784 25.98
275 125 0.20665 25.83
276 125 0.20547 25.68
277 125 0.20429 25.54
278 125 0.20313 25.39
279 125 0.20196 25.25
280 125 0.20081 25.10
281 125 0.19966 24.96
282 125 0.19852 24.81
283 125 0.19738 24.67
284 125 0.19626 24.53
285 125 0.19513 24.39
286 125 0.19402 24.25
287 125 0.19291 24.11
288 125 0.19181 23.98
289 125 0.19071 23.84
290 125 0.18962 23.70
291 125 0.18854 23.57
292 125 0.18746 23.43
293 125 0.18639 23.30
294 125 0.18532 23.17
295 125 0.18426 23.03
296 125 0.18321 22.90
297 125 0.18216 22.77
298 125 0.18112 22.64
299 125 0.18008 22.51
300 125 0.17905 22.38
15000
TOTAL PV 17846.54
QUESTION-7: