7.The following cash flow diagram has two IRRs.

has. Identify the two TRIs.

Anne Flux de tresorerie

0 -500

1 600

2 300

3 300

4 200

5 -1,000

8. You are currently 55 years old and plan to retire at 65. To make your retirement easier, you intend to start a retirement account:

At the beginning of each year 1, 2, 3, 4, 5 (that is, starting today and the beginning of each of the next four years), you intend to make a deposit into the account of retirement. You think the account will earn 10% interest per year.

After retiring at age 65, you plan to live another eight years. At the start of each of these years, you want to withdraw $50,000 from your retirement account. Your account balance will continue to earn 10% interest.

How much should you deposit into the account annually?

9. Same question as 8 but now you want to withdraw $60,000 per year.

10. Same question as in 8 but now the account will only generate 1% interest per year.

11. Same question as 8 but you want to retire at 70.

12. Calculate the annual payment required to repay a $100,000 mortgage at 13.5% over 15 years.

13. You just took out a $15,000 loan for a car. The loan has an annual interest rate of 15% which translates to a monthly rate of 15/12 (1.25%). The 48 monthly payments (pay at the end of each of the following 48 months) are equal.

has. Calculate the monthly payment amount on the loan.

b. As part of the loan calculation, for each month, calculate the remaining principal on the loan and the principal and interest breakdown of the monthly payment.

vs. Show that the principal at the beginning of each month is the present value of the remaining payments at the loan interest rates (use either the NPV or PV functions).