chapter 5 present worth - oup（第五章现值u2014u2014牛津大学出版社）.pdfVIP

Chapter 5 Present Worth 5-1 Emma and her husband decide they will buy $1,000 worth of utility stocks beginning one year from now. Since they expect their salaries to increase, they will increase their purchases by $200 per year for the next nine years. What would the present worth of all the stocks be if they yield a uniform dividend rate of 10% throughout the investment period and the price/share remains constant? Solution PW of the base amount ($1,000) is: 1,000(P/A, 10%, 10) = $6,144.57 PW of the gradient is: 200(P/G, 10%, 10) = $4,578.27 Total PW = 6,144.57 + 4,578.27 = $10,722.84 5-2 It takes $10,000 to put on the local art festival each year. Immediately before this years festival, the sponsoring committee determined that it had $60,000 in an account paying 8% interest. After this year, how many more festivals can be sponsored without raising more money? Think carefully! Solution 60,000 - 10,000 = 10,000(P/A, 8%, n) (P/A, 8%, n) = 50,000/10,000 = 5 From the i = 8% table n = 6 This is the number of festivals after this years. There will be some money left over but not th enough to pay for a 7 year. 5-3 A scholarship is to be established that will pay $200 per quarter at the beginning of Fall, Winter, and Spring quarters. It is estimated that a fund for this purpose will earn 10% interest, compounded quarterly. What lump sum at the beginning of Summer quarter, when deposited, will assure that the scholarship may be continued into perpetuity? Solution 79 80 Chapter 5