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Problem 2-03, Old Time Savings Bank, how much interest?

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Old Time Savings Bank pays interest on savings accounts. How much will you earn in interest in the first, second and tenth year?

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Problem 2-04, New Savings Bank money to double

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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How long will it take your deposit to double if you deposit it with New Savings bank?

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Problem 2-05, Leonardo da Vinci’s painting

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Compute the annual rate of appreciation in the price of the painting taking into account inflation.

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Problem 2-06, Determine the future value

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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If you invest a certain amount, compute the future value of your investment at the end of a particular year.

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Problem 2-07, Compute the future value

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Compute the future value given combinations of interest rates and times.

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Problem 2-08, Amazon share prices rose

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Determine the future value of an investment made in Amazon given the yearly appreciation %.

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Problem 2-09, Discount factor and interest rate

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Given two amounts, determine the discount factor and the interest rate associated with it.

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Problem 2-10, Present value

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Compute the present value given the cost of capital.

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Problem 2-11, Project’s PV and NPV

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Given three years’ worth of cash flows, a cost of capital, and initial investment, compute the PV of the project and also compute the NPV of the project.

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Problem 2-12, What is the PV

Principles of Corporate Finance 13e by Brealey, Myers, Allen

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Compute the PV of a cash flow at four different rates and times. For the last part, determine the PV if the cash flow is through years 1 to XX.

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