Casio Solutions to Selected Problems: 2007 Midterm (FIN300)
2. [N=6yrsx12months=72, I=?, PV=-135,000, PMT=2,215.10, FV=0, P/Y=12, C/Y=1]
Answer: I= 5.977%
3. [N=3x10yrs=30, I=8%, PV=?, PMT=500, FV=0, P/Y=3, C/Y=12]
Answer: PV = $10,200.228
4. Step 1: Convert 8% CQ to EAR
Casio: CNVT function… N=4, I=8 > press EFF = 8.24%
Step 2: Multiply 5%CA by 4 years = 20%
Multiply 8.24% by 5 years = 41.2%
Step 3: Add both answers and divide by 9 to get = 6.8%
Step 4: Convert 6.8% to APR (CM)
Casio: CNVT function… N=12, I=6.8 > press APR = 6.5968%
5. [N=20yrsx52weekly pmt’s=1040, I=5.8%, PV= $340,000 (540,000-200,000),
PMT=?, FV=0, P/Y=52, C/Y=2]
Answer: PMT= $549.013
6. [N=12x30yrs=360, I=9%, PV=$16,000,000 ($20M-4M), PMT=?, FV=0, P/Y=12,
C/Y=2]
Answer: PMT= $126,853.2078
8. [N=52x3=156, I=3.5%, PV=?, PMT=30, FV=0, P/Y=52, C/Y=52]
Answer: PV= $4441.26
9.
Step 1: Find APR = r% x periods = 1.25 x 12 = 15%
Step 2: Convert APR to EAR
Casio: Use CNVT function > N=12, I=15 > Press EFF = 16.07545%
10. Use CNVT function: N=12, I=9 > Press APR = 8.64878%
12. 1. N= 4, i=10, PV=-2000, PMT= 0, FV=?, P/Y=1, C/Y=1
Answer: FV = 2928.20
2. N= 5, i=10, PV= -2928.2, PMT=?, FV=0, P/Y=1, C/Y=1
PMT= $772.4517 14. Step 1: Find PMT for the mortgage loan
[N=12months x 25yrs=300 payments, i=5, PV=345,000, FV=?, P/Y=12, C/Y=2]
Answer: PMT=$2006.537
Step 2: Find FV @ Year 20
[N= 12months x20 years=240 payments, i=5, PV=345,000, PMT= -2006.537, FV=?,
P/Y=12, C/Y=2]
Answer: FV = $106,460.4461
Step 3: To find the t

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