The Mathematics of Money

Copyright © 2008, The McGraw-Hill Companies, Inc.

Appendix A Answers to Odd-Numbered Exercises 645

Chapter 5 Exercises

1. DesMoines Omaha Denver Boise Spokane Total

3Q sales $1,845,275 $2,087,416 $1,878,080 $3,567,029 $2,502,135 $11,879,935

Ta rget $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $10,000,000

/
 target 
$154,725 $87,416 
$121,920 $1,567,029 $502,135 $1,879,935

DesMoines Omaha Denver Boise Spokane Total

4Q sales $2,534,026 $1,546,032 $1,994,032 $3,075,075 $2,403,716 $11,552,881

Ta rget $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,500,000 $11,500,000

/
 target $534,026 
$453,968 
$5,968 $75,075 
$96,284 $52,881

3. 88 months


4. $793,145.48


5. $458,754.13


6. 8.32%


7. 31 quarters (7¾ years); $165.79; $9,570.79


8. Forever


9. 12.59%

Chapter 6 Section 6.1

1. $215.88


2. a) $12.52, b) $18,091.40


3. a) Cindy $1,458, Jim $1,215, Shawn $972;
   b) $1,215


4. 2.12%


5. Axerixia 3.45%, Zovaxacquin 5.07%, so Zovaxac-
   quin is actually higher


6. a) $27,000, b) 15.77%


7. 
   37.76%


8. 8.90%


9. 4.90%


10. a) CD 6.45%, stock 12.80%; b) $5,665.80;
    c) impossible to determine


11. 6.17%


12. 
    90.45%


13. 
    24.21%


14. a) $0.325/share, b) $154.38


15. 7.48%


16. $91.94


17. 20.95%

Chapter 6 Section 6.2

1. $37.50


2. $262.50; $10,000


3. Discount of $234.81


4. 6.92%


5. 6.02%


6. a) $10,351.60; 6.04%


7. a) 6.22%, b) 6.06%


8. a) Both discount, b) SomeOtherCo,
   c) SomeOtherCo, d) AnyCorp

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