home *** CD-ROM | disk | FTP | other *** search
/ Current Shareware 1994 January / SHAR194.ISO / spreadsh / fin311.zip / FINC1503.EQU < prev    next >
Text File  |  1993-03-20  |  2KB  |  19 lines

  1. "AST1CAL3 EQUATION VARIABLE |N 7 0N|","03-20-1993","15:35:42"
  2. "EXPECT$=RND(SUCCPROB*SUM$) FREQCONV=12/CMPERIOD NPERIODS=FREQCONV*NUMYEARS RATE%PER=ANNRATE%/FREQCONV EFFRATE%=RND(100*((1+RATE%PER/100)^FREQCONV-1)) PRESVALU=RND(EXPECT$*(1+RATE%PER/100)^-NPERIODS)"
  3. "STATISTICAL PROBABILITY, EXPECTATION. If a certain event is    known to happen SUCCESS# times in NTRIALS occurrences from empirical            observations then it is considered to have STATISTICAL probability of           SUCCESS#/NTRIALS of being successful. If SUCCPROB is the probability of         receiving a SUM$, then SUCCPROB*SUM$ is its expectation EXPECT$. If money earns a simple annual rate of ANNRATE% with a compounding period CMPERIOD in months,  CMPERIOD=1 for monthly, =3 for quarterly, =6 for semiannually, =12 for yearly.  then PRESVALU is the present value of the expectation EXPECT$ in NUMYEARS from  today. EFFRATE% is the effective or yearly rate percent for money.                                                                                              *** Answers to problems ***    (c) Copyright PCSCC Inc., 1993                   (a) Set ANNRATE%=7, CMPERIOD=12, NUMYEARS=4, SUCCPROB=.12, SUM=10,000.  The     present value is PRESVALU=$915.47.  The government should invest $915.47 at 7%  to cover its future obligation to Mr. Souza.                                                          Type any key to exit.                                                                                                                                    ||From studies of graduation records at ACME Tech, it was found  that over the last 30 years, the probability that an accepted veteran student   will graduate 4 years later is 0.12.  The government has promised Mr. Souza, a  veteran, a $10,000 bonus upon his graduation 4 years from today.  (a) If money  is worth 7%, find the value of his $10,000 expectation today.                         Type comma key to see answers.  Type (F2) to return to helpfile."
  4. 11
  5. 0,0,""
  6. 0,0,""
  7. 0,0,""
  8. 0,0,""
  9. 0,0,""
  10. 0,0,""
  11. 0,0,""
  12. 0,0,""
  13. 0,0,""
  14. 0,0,""
  15. 0,0,""
  16. 1
  17. 0
  18. 0
  19.