Finance: Answer to Question 1 and 3

Running head: FINANCE
Finance
Name of the Student
Name of the University
Author Note

1
FINANCE
Table of Contents
Answer to Question 1:................................................................................................................2
Requirement a:.......................................................................................................................2
Requirement b:.......................................................................................................................2
Requirement c:.......................................................................................................................2
Requirement d:.......................................................................................................................3
Requirement e:.......................................................................................................................3
Requirement f:........................................................................................................................4
Answer to Question 3:................................................................................................................4
Reference List............................................................................................................................8
Bibliography:..............................................................................................................................8

2
FINANCE
Answer to Question 1:
Requirement a:
Particulars Amount
Debt Amount (in million) A $196.70
APR B 5%
Total Period (in years) C 3
Nos. of Compounding Periods
p.a. D 12
Total Nos. of Compounding
Periods E=CxD 36
Investment Fund (in million) F=A/[(1+B/D)^E] $169.35
Requirement b:
Particulars Amount
Current Annual Operating
Revenue (in million) A $4,257.80
Annual Growth Rate B -2.02%
Total Period (in years) C 10
Nos. of Compounding Periods
p.a. D 1
Total Nos. of Compounding
Periods E=CxD 10
Annual Operating Revenue
after 10 years (in million) F=Ax[(1+B/D)^E] $3,471.84
Requirement c:
Particulars Investment A Investment B Investment C
APR A 7.00% 6.95% 6.97%
Nos. of Compounding Periods
p.a. B 2 12 4
EAR C=[(1+A/B)^B]-1 7.12% 7.18% 7.15%