ENGR 111-HW3-1

# ENGR 111-HW3-1 - 1-29-08 ENGR 111-01 Dr. Crockett's...

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Unformatted text preview: 1-29-08 ENGR 111-01 Dr. Crockett's Homework Skillin, Paul variable n ( # periods) F (future value of money) P (present value of money) A (annual) i (intrest rate per period) resultant value of unknown values for # 1 120 0 18,000 ? 0.44% 193.12506252135400 values for # 2 40 2,000,000 0? 7% 10018.27774722060000 values for # 3 40 2,000,000 ? 0 7% 133560.76203062800000 Problem 1: A loan for \$18,000 is taken out, with an intrest rate of 5.25% to be paid back over a period of 100 periods. What is the annual payment? According to the equation given, it is \$193.13 Problem 2: By putting how much per year into a portfolio making 7% would it take to have \$2 million dollars at the end of 40 years? According to the equation, that is \$10,018.28 Problem 3: By putting how much (as a lump sum) into the same portfolio as that in #2 would it take for that amount to mature into \$2 million in 40 years? According to the equation, it would take \$133,560.76 ...
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## This note was uploaded on 04/13/2008 for the course ENGR 111 taught by Professor Cardinal during the Winter '08 term at Cal Poly.

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