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    Finman Chapter 7

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    Maria Kathreena Andrea Adeva
    The document contains multiple choice problems related to financial planning and time value of money concepts. It provides calculations for cash receipts, payments, collections, borrowings, present and future values over various time periods using interest rates. The problems cover topics like compound interest, annuities, perpetuities, and time value of money calculations.

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    Finman Chapter 7

    Uploaded by

    Maria Kathreena Andrea Adeva
    258 views6 pages
    The document contains multiple choice problems related to financial planning and time value of money concepts. It provides calculations for cash receipts, payments, collections, borrowings, present and future values over various time periods using interest rates. The problems cover topics like compound interest, annuities, perpetuities, and time value of money calculations.

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    Finman chapter 7

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    The document contains multiple choice problems related to financial planning and time value of money concepts. It provides calculations for cash receipts, payments, collections, borrowings, present and future values over various time periods using interest rates. The problems cover topics like compound interest, annuities, perpetuities, and time value of money calculations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    258 views6 pages

    Finman Chapter 7

    Uploaded by

    Maria Kathreena Andrea Adeva
    The document contains multiple choice problems related to financial planning and time value of money concepts. It provides calculations for cash receipts, payments, collections, borrowings, present and future values over various time periods using interest rates. The problems cover topics like compound interest, annuities, perpetuities, and time value of money calculations.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Adeva, Maria Kathreena Andrea H.

    BSA 2-11

    Chapter 7: Financial Planning (continuation)

    MC Problems

    20 A. 60,500
    Collection from:
    July 50,000 x 15%
    August 70,000 x 50%
    September 60,000 x 30%
    Cash receipts for September

    21 B. 7,100
    Purchases:
    February 5,000 x 70%
    March 12,000 x 30%
    Amount to be paid to suppliers in March

    22 C. 21,100
    Paid to suppliers in March (see no. 21)
    Labor cost, 15% of March sales 20,000 x 15%
    Other operating costs 15,000 - 4,000
    Amount to be disbursed for operations in March

    23 D. 14,000
    Sales from:
    February 10,000 x 60%
    March 20,000 x 40%
    Amount to be collected from customers in March

    24 A. 2,900
    Cash balance, March 1
    Add: collections in March (see no. 23)
    Less: payments in March (see no. 22)
    Deficiency
    Add: Required borrowing 3,500+14,000-21,000-2,500-500
    Cash balance, March 31

    Chapter 8: Time Value of Money


    MC Problems

    3 D. 30,416.25
    Face value
    Multiply by FV 1.04^5
    Total amount at the end of five years

    6 C. 385,392
    Face value 50,000 × 1/2
    Multiply by FVOA, even [(1.13^9) - 1] / 13%
    Total amount at the end of nine years

    7 D. 435,493
    Face value 50,000 × 1/2
    Multiply by FVAD [(1.13^9) - 1] / 13% × (1.13)
    Total amount at the beginning of the next nine years

    8 D. 142,857
    Face value
    Divide by PV of Perpetuity
    Present value

    11 B. 7,718
    *use PV of 1 at 11%
    Y1 1.11^-1 = 0.9009 x 1,000
    Y2 1.11^-2 = 0.81162 x 2,000
    Y3 1.11^-3 = 0.7312 x 3,500
    Y4 1.11^-4 = 0.6587 x 4,000
    Present value of the net cash flow

    18 C. 11,358.24
    Face value
    Multiply by FV [1 + (8% / 12)] ^ 7 x 12
    Total amount at the end of seven years

    20 A. 3,820.32
    Total amount at the end of three years:
    Face value 20,000
    Multiply by FV 1.06^3 1.19102
    Less: face value
    Compounded interest
    21 D. 23.62
    Future value
    Divide by face value
    Total

    Less:
    Annual rate of return

    23 B. 9.22 years
    Future value
    Multiply by annual rate
    Total
    Divide by face value
    Total
    Add:
    Total
    log 4.16 / log 1.18

    30 Face value
    Multiply by *constant
    Total

    Time and interest 5% x 20 yrs


    Ending value after 20 years
    7,500
    35,000
    18,000
    60,500

    3,500
    3,600
    7,100

    7,100
    3,000
    11,000
    21,100

    6,000
    8,000
    14,000

    3,500
    14,000
    -21,100
    -3,600
    6,500
    2,900
    25,000
    1.21665
    30,416.25

    25,000
    15.41571
    385,392.75

    25,000
    17.41975
    435,493.75

    10,000
    0.07
    142,857.14

    901
    1,623
    2,559
    2,635
    7,718

    6,500
    1.747421
    11,358.24

    23,820.32
    20,000.00
    3,820.32
    500
    60
    8.333333333333
    ^
    0.10
    1.23618
    1.00
    23.62%

    10,000,000
    18%
    1,800,000
    500,000
    3.6
    1
    4.6
    9.22

    15,000
    2.7183
    40,774.5
    ^
    1
    40,774.5

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