QNO 1

INT RATE 8%
YEAR CASH FLOW DISCOUNT RATE CASH FLOW IRR
0 -600 1 -600 -600
1 100 0.93 92.59 100

2 100 0.86 85.73 100

3 100 0.79 79.38 100
4 100 0.74 73.50 100
5 100 0.68 68.06 100
6 100 0.63 63.02 100
7 100 0.58 58.35 100
8 100 0.54 54.03 100
9 100 0.50 50.02 100
10 100 0.46 46.32 100
SUM 71.01 11% IRR

SO , AS WE KNOW IT'S VALUE IS $ 71.008 SO WE CAN ACCEPT THAT PROJECT

 Q NO 2
payment 10000
cf 2983.16
year 5
INT RATE 15%

cash flow
invertme at the
ntat end of
beginning each pricpal
years of year years income return
1 10000 0.00 0 0.00
2 10000.00 0.00 0 0.00
3 10000.00 0.00 0 0.00
4 10000.00 0.00 0 0.00
5 10000.00 0.00 0 0.00
6 10000.00 0.00 0 0.00
QNO 3
Cost of investment 1000 Calculating
g 10% DR
n 11 NPV
i 15%
initial payment $129.29 Years
0
n cf 1
0 -1000 2
1 100 3
2 110 4
3 121 5
4 133.1
5 146.41 IRR
6 161.051
7 177.1561
8 194.87171
9 214.358881
10 235.7947691
11 259.37424601
present value of annuity 20000
npv -226.51619918467
Q NO 4
Calculating Multiple IRR & NPVs using Data Table Command
20%
76.52 DR NPV
76.52 NPV
CF 0% 0
15
-500 3% 6.057644
600 6% 9.696018
10
300 9% 11.48914
300 12% 11.87822 5
200 15% 11.20365
-1000 18% 9.728876 0
0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45
21% 7.658282
6% 24% 5.150733 -5
27% 2.329837
30% -0.708201 -10

33% -3.888552
-15
36% -7.153116
39% -10.45692
0.3 0.35 0.4 0.45
Q NO 5
Computing Loan Table Through IRR 10%

Investme
nt At Cashflow
beginnin At end of Principaa
year CF Year g of year year Income l return
0 -800 1 800.00 300 0.00 300.00
1 300 2 500.00 200 0.00 200.00
2 200 3 300.00 150 0.00 150.00
3 150 4 150.00 122 0.00 122.00
4 122 5 28.00 133 0.00 133.00
5 133 6 -105.00

IRR 5%

Computing Loan Table Through IRR 3%

Investme
nt At Cashflow
beginnin At end of Principaa
year CF Year g of year year Income l return
0 -800 1 800.00 300 0.00 300.00
1 300 2 500.00 200 0.00 200.00
2 200 3 300.00 150 0.00 150.00
3 150 4 150.00 122 0.00 122.00
4 122 5 28.00 133 0.00 133.00
5 133 6 -105.00

IRR 5%
 Q NO 6
Computing Loan Table Through IRR 10%

Investme
nt At Cashflow
beginnin At end of
year CF Year g of year year Income
0 -800 1 800.00 300 0.00
1 300 2 500.00 200 0.00
2 200 3 300.00 150 0.00
3 150 4 150.00 122 0.00
4 122 5 28.00 133 0.00
5 133 6 -105.00
IRR 5%
Principaa
l return
300.00
200.00
150.00
122.00
133.00
QNO 7
Calculate the flat annual payment required to pay off a 13%, 5-year loan of $100,000.
Total Loan 100000
Interest 0.13
Total period 5 years
Annual payments 28431.454335516

years Interest Principal Total Payment

0
1 13000 15431.454335516 28431.4543355158
2 10993.910936383 17437.543399133 28431.4543355158
3 8727.03029449568 19704.42404102 28431.4543355158
4 6165.45516916307 22265.999166353 28431.4543355158
5 3270.87527753722 25160.579057979 28431.4543355158
r loan of $100,000.

Balance
100000
84568.545664484
67131.002265351
47426.578224331
25160.579057979
0
Q NO 8
You have just taken a car loan of $15,000. The loan is for 48 months at an annual intere
rate of 15% (which the bank translates to a monthly rate of 15%/12 = 1.25%). The 48
You have just taken a car loan of $15,000. The loan is for 48 months at an annual intere

a). Calculate the monthly payment on the loan.

Loan Ammount 15000

Interest Monthly 0.0125
Payment Months 48
Monthly payment 417.461224

b). In a loan table calculate, for each month: the principal remaining on the loan at the
beginning of the month and the split of that month ’ s payment between interest and
repayment of principal.

Months Principal at Monthly Payment Interest

0 15000
1 14770.0388 417.461223997144 187.5
2 14537.203 417.461223997144 184.625484700036
3 14301.4569 417.461223997144 181.715037958822
4 14062.7638 417.461223997144 178.768210633343
5 13821.0872 417.461223997144 175.784547966295
6 13576.3895 417.461223997144 172.76358951591
7 13328.6332 417.461223997144 169.704869084894
8 13077.7799 417.461223997144 166.607914648491
9 12823.7909 417.461223997144 163.472248281633
10 12566.627 417.461223997144 160.297386085189
11 12306.2487 417.461223997144 157.08283811129
12 12042.6155 417.461223997144 153.828108287717
13 11775.687 417.461223997144 150.532694341349
14 11505.4219 417.461223997144 147.196087720651
15 11231.7784 417.461223997144 143.817773517195
16 10954.7144 417.461223997144 140.397230386196
17 10674.1871 417.461223997144 136.933930466059
18 10390.1533 417.461223997144 133.42733929692
19 10102.569 417.461223997144 129.876915738168
20 9811.38984 417.461223997144 126.28211188493
21 9516.57099 417.461223997144 122.642372983528
22 9218.0669 417.461223997144 118.957137345857
23 8915.83151 417.461223997144 115.225836262716
24 8609.81818 417.461223997144 111.447893916036
25 8299.97969 417.461223997144 107.622727290022
26 7986.26821 417.461223997144 103.749746081183
27 7668.63534 417.461223997144 99.8283526072337
28 7347.03205 417.461223997144 95.8579417148598
29 7021.40873 417.461223997144 91.8379006863312
30 6691.71512 417.461223997144 87.7676091449461
31 6357.90033 417.461223997144 83.6464389592936
32 6019.91286 417.461223997144 79.4737541463205
33 5677.70055 417.461223997144 75.2489107731852
34 5331.21058 417.461223997144 70.9712568578857
35 4980.38949 417.461223997144 66.640132268645
36 4625.18313 417.461223997144 62.2548686220387
37 4265.5367 417.461223997144 57.8147891798499
38 3901.39468 417.461223997144 53.3192087446338
39 3532.70089 417.461223997144 48.7674335539774
40 3159.39843 417.461223997144 44.1587611734378
41 2781.42969 417.461223997144 39.4924803881415
42 2398.73633 417.461223997144 34.7678710930289
43 2011.25931 417.461223997144 29.9842041817275
44 1618.93883 417.461223997144 25.1407414340348
45 1221.71434 417.461223997144 20.236735401996
46 819.524549 417.461223997144 15.2714292945566
47 412.307382 417.461223997144 10.2440568607743
48 -2.7285E-12 417.461223997144 5.15384227156964
49 $0.00
 is for 48 months at an annual interest
y rate of 15%/12 = 1.25%). The 48
is for 48 months at an annual interest

he loan at the
n interest and c). Show that the principal at the beginning of each month is the present value of the
remaining loan payments at the loan interest rate

Principal payment
15000
229.96122399714 14770.04
232.83573929711 14537.2
235.74618603832 14301.46
238.6930133638 14062.76
241.67667603085 13821.09
244.69763448124 13576.39
247.75635491225 13328.63
250.85330934865 13077.78
253.98897571551 12823.79
257.16383791196 12566.63
260.37838588586 12306.25
263.63311570943 12042.62
266.9285296558 11775.69
270.26513627649 11505.42
273.64345047995 11231.78
277.06399361095 10954.71
280.52729353109 10674.19
284.03388470022 10390.15
287.58430825898 10102.57
291.17911211221 9811.39
294.81885101362 9516.571
298.50408665129 9218.067
302.23538773443 8915.832
306.01333008111 8609.818
309.83849670712 8299.98
313.71147791596 7986.268
317.63287138991 7668.635
321.60328228228 7347.032
325.62332331081 7021.409
329.6936148522 6691.715
333.81478503785 6357.9
337.98746985082 6019.913
342.21231322396 5677.701
346.48996713926 5331.211
350.8210917285 4980.389
355.20635537511 4625.183
359.64643481729 4265.537
364.14201525251 3901.395
368.69379044317 3532.701
373.30246282371 3159.398
377.968743609 2781.43
382.69335290412 2398.736
387.47701981542 2011.259
392.32048256311 1618.939
397.22448859515 1221.714
402.18979470259 819.5245
407.21716713637 412.3074
412.30738172557 0
resent value of the
e
Q NO 9
cash 30000 DEFFERED PAYMENT PLAN
n 30
pmt 1050
I 1.25%

DEFFERED PAYMENT
MONTH CASH PAYMENT PLAN
0 30000 5000
1 0 1050
2 0 1050
3 0 1050
4 0 1050
5 0 1050
6 0 1050
7 0 1050
8 0 1050
9 0 1050
10 0 1050
11 0 1050
12 0 1050
13 0 1050
14 0 1050
15 0 1050
16 0 1050
17 0 1050
18 0 1050
19 0 1050
20 0 1050
21 0 1050
22 0 1050
23 0 1050
24 0 1050
25 0 1050
26 0 1050
27 0 1050
28 0 1050
29 0 1050
30 0 1050
IRR
PV of deffered payment
 5000

DIFFERENCE
25000
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
-1050
2%
$31,133.35
Q NO 10
P 15000
Int 0.1
loan terms 5
fv $91,576.50

account balance at deposit at be total account at

years beg of yr of yr interest earned the end of yr
1 0 15000 0 15000
2 15000 15000 1500 31500
3 31500 15000 3150 49650
4 49650 15000 4965 69615
5 69615 15000 6961.5 91576.5
6 91576.5
Q NO 11
P 15000
Int 0.1
loan terms 4
fv $69,615.00

total
account
account balance at beg of deposit at interest at the
years yr be of yr earned end of yr
1 0 15000 0 15000
2 15000 15000 1500 31500
3 31500 15000 3150 49650
4 49650 15000 4965 69615
5 69615
Q NO 12

Monthly deposite 250

N 120

PMT AT END 85000

Effective annual return
$30,000.00

nhi atta mjy sorry

Q NO 13
I 10%
Annual deposit 5175.6067367878
annual deposit aftter deposit 100000

account bal at beg of deposit at beg of withdrawal at the

years yr yr beg of yr
1 0.0 5175.6067367878 0.0
2 5175.6 5175.6067367878 0.0
3 10351.2 5175.6067367878 0.0
4 15526.8 5175.6067367878 0.0
5 20702.4 5175.6067367878 0.0
6 25878.0 5175.6067367878 0.0
7 31053.6 5175.6067367878 0.0
8 36229.2 5175.6067367878 0.0
9 41404.9 5175.6067367878 0.0
10 46580.5 5175.6067367878 0.0
11 51756.1 5175.6067367878 0.0
12 56931.7 5175.6067367878 0.0
13 62107.3 5175.6067367878 0.0
14 67282.9 5175.6067367878 0.0
15 72458.5 5175.6067367878 0.0
16 77634.1 5175.6067367878 0.0
17 82809.7 5175.6067367878 0.0
18 87985.3 5175.6067367878 0.0
19 93160.9 5175.6067367878 0.0
20 98336.5 5175.6067367878 0.0
21 103512.1 5175.6067367878 0.0
22 108687.7 5175.6067367878 0.0
23 113863.3 5175.6067367878 0.0
24 119039.0 5175.6067367878 0.0
25 124214.6 5175.6067367878 0.0
26 129390.2 5175.6067367878 0.0
27 134565.8 5175.6067367878 0.0
28 139741.4 5175.6067367878 0.0
29 144917.0 5175.6067367878 0.0
30 150092.6 5175.6067367878 0.0
31 155268.2 -100000.0 0.0
32 55268.2 -100000.0 0.0
33 -44731.8 -100000.0 0.0
34 -144731.8 -100000.0 0.0
35 -244731.8 -100000.0 0.0
36 -344731.8 -100000.0 0.0
37 -444731.8 -100000.0 0.0
38 -544731.8 -100000.0 0.0
39 -644731.8 -100000.0 0.0
40 -744731.8 -100000.0 0.0
41 -844731.8 -100000.0 0.0
42 -944731.8 -100000.0 0.0
43 -1044731.8 -100000.0 0.0
44 -1144731.8 -100000.0 0.0
45 -1244731.8 -100000.0 0.0
46 -1344731.8 -100000.0 0.0
47 -1444731.8 -100000.0 0.0
48 -1544731.8 -100000.0 0.0
49 -1644731.8 -100000.0 0.0
50 -1744731.8 -100000.0 0.0
total in ac at yr end
5175.6
10351.2
15526.8
20702.4
25878.0
31053.6
36229.2
41404.9
46580.5
51756.1
56931.7
62107.3
67282.9
72458.5
77634.1
82809.7
87985.3
93160.9
98336.5
103512.1
108687.7
113863.3
119039.0
124214.6
129390.2
134565.8
139741.4
144917.0
150092.6
155268.2
55268.2
-44731.8
-144731.8
-244731.8
-344731.8
-444731.8
-544731.8
 -644731.8
-744731.8
-844731.8
-944731.8
-1044731.8
-1144731.8
-1244731.8
-1344731.8
-1444731.8
-1544731.8
-1644731.8
-1744731.8
-1844731.8
QNO 14

INT EAR 5%
INT PAID 6%
INT DEP 25000
pmt $13,635.92 6%
pmt $13,445.12 THE LOAN 6%

total
account account at
balance at deposit at interest the end of
years beg of yr be of yr earned yr
1 25000 $13,635.92 1500 $12,135.92
2 $12,864.08 $13,635.92 $771.84 $12,864.08
$0.00 $0.00
 THE LOAN 5%

total
account account at
balance at deposit at interest the end of
years beg of yr be of yr earned yr
1 25000 $13,445.12 1250 $12,195.12
2 $12,804.88 $13,445.12 $640.24 $12,804.88
$0.00 $0.00
Q NO 15 Q NO
DATE CASH FLOW I
30-Jan-07 -899 DATE
14-Feb-08 70 30-Jan-07
14-Feb-09 70 14-Feb-08
14-Feb-10 70 14-Feb-09
14-Feb-11 70 14-Feb-10
14-Feb-12 70 14-Feb-11
14-Feb-13 1070 14-Feb-12
XIRR 9.18% 14-Feb-13

XNPV
 16 Q NO 17
15% SAME DAT AS Q 16
CASH FLOW
-500
100 TWO IRR OF Q 16
300 IRR 1 6%
400 IRR2 28%
600
800
-1800

36.4443579518115