Finance problems with solutions

PART A
1) C/Y, P, Y = 1
N= (120/365)
1/Y = 7%
PV= $ 800
CPT FV = $817.99
2) The formula for yield is shown below.
Yield = [(Selling Price – Purchase Price)/Purchase Price] * 365/Holding period
Let the purchase price be X
4.11 = ((100000-X)/X)*365/200
Solving the above, we get X = $ 97,797.55
3) C/Y, P, Y = 2
N=10.5
1/Y = 8%
PV= $ 600
CPT FV = $905.74
4) Present Value = 7500/(1+(6%/12))108 = $4,376.5
5) FV of note = $ 2,000
Time to maturity = 3 years 6 months or 10.5 quarters
Interest rate = 8% p.a. or 2% per quarter
Amount paid for the note = 2000/(1.0210.5) = $ 1,624.53
6) Let the nominal annual rate of interest be X %

Amount = $ 1,150
Principal = $ 700
Time period = 3 years or 6 half years
1150 = 700*(1+(X%/2))6
Solving the above, we get X = 13.98%
7) Effective interest rate (%) = [(1+(6.3%/12))12 -1]*100 = 6.49%
8) The future value of the annuity can be determined using the following formula.
In the given case, P = $ 150, r= (6/12) = 0.5% per month, n = 5 years or 5*12 = 60 months
Hence, FV of these payments = 150*[(1.005)60-1]/0.005 = $ 10,465.5
Total amount deposited = 150*60 = $ 9,000
Hence, interest earned = 10,465.5 – 9,000 = $ 1,465.50
PART B
1) The present value of two amounts needs to be found here. One was due 5 months ago and
other which is due three months from now.
Interest rate = 8.5% p.a. compounded monthly
Amount due in past
Amount due = $ 450
Time = 5 months
Present value = 450*(1+ (8.5%/12))5 = $ 466.16