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assignment_4_step_1_update.xlsx

Sheet1

Q1
	Investment today	95	Millions $
	Interest rate	3.50%
	Time in years	10
	Amount after 10 years	134.01	Millions $
	So with an investement of $95 million and an interest rate of 3.5% in a span of 10 years you will grow to $134 Million
Q2
	Future value	14	Millions $
	Time in years	13
	Interest rate	4%
	Annual amout to be invested	8.41	Millions $
	So with a future value of $14 Million that needed to be reached in a span of 13 years and an interest rate of 4%, you will need to invest $8.41 Million
Q3
	Future Amount	554
	Present value	197
	Annual interest rate	0.05
	Monthly interest rate	0.0041666667
	Number of Months	248.67
	Number of Years	20.72
	Let the time in years be n
	Time in months is 12n
	554/197 = (1+0.0042)^12n
	(1+0.0042)^n =	2.800420973
Q4
	FV of office	20	Million $
	Time in years	10
	Interest rate	10%
	Price asked	12	Million $
	IRR	5.24%
Q5
	Investment today	70	Million $
	Interest rate	3.50%
	Time of investment before annuity begins	5
	FV after 5 years	83.14	Million $
	Time of annual payments	15	it starts from beginning of year 6, i.e total year end payments will be 14 and 1 will be advance payment
	Interest rate	3.50%
	Annuity amt	6.97	Million $
Q6
	Amount to be borrowed	4	Million $
	Rate	3.75%	Annual
	Monthly	0.31%
	Time in months	120
	Monthly repayment	$0.04	Million $
	First month interest	0.01	Million $
	First month principal	$0.03	Million $
				Amount in Million $
	Year	Application I	Cumultive cash flows	Application II	Cumultive cash flows
	0	-1.5	-1.5	-1	-1
	1	0.8	-0.7	0.5	-0.5
	2	0.7	0	0.24	-0.26
	3	0.3	0.3	0.6	0.34
	NPV @ 15%	($0.08)		$0.01
	IRR	11%		16%
	Payback	2.00		2.43