Week 5 Wiley Plus

Problem 5.17

Your finance text book sold 52,500 copies in its first year. The publishing company expects the sales to grow at a rate of 17.0 percent for the next three years, and by 10.0 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in year 3 and 4. (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answers to the nearest whole number.)

Number of copies sold after 3 years

Number of copies sold in the fourth year

Growth rate: Your finance textbook sold 53,250 copies in its first year. The publishing company expects the sales to grow at a rate of 20 percent each year for the next three years and by 10 percent in the fourth year. Calculate the total number of copies that the publisher expects to sell in years 3 and 4. Draw a time line to show the sales level for each of the next four years.

Answer:

92,016; 101,218

Problem 5.21

Find the present value of $3,500 under each of the following rates and periods.

(If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to the nearest penny.)

a. 8.9 percent compounded monthly for five years.

Present value $

b. 6.6 percent compounded quarterly for eight years.

Present value $

c. 4.3 percent compounded daily for four years.

Present value $

d. 5.7 percent compounded continuously for three years.

Present value $

Multiple compounding periods: Find the present value of $3,500 under each of the following rates and periods:

a. 8.9 percent compounded monthly for five years.

b. 6.6 percent compounded quarterly for eight years.

c. 4.3 percent compounded daily for four years.

d. 5.7 percent compounded continuously for three years.

Answer:

a $2,246.57;

b $2,073.16;

c $2,946.96;

d $2,949.88

Problem 6.19

Trigen Corp....