week 2 homework

# week 2 homework - In one year In two years In three years...

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Amount Periods Rate FV In one year \$ 2,000.00 8 10.0% \$4,287.18 In two years \$ - 7 10.0% \$0.00 In three years \$ 1,500.00 6 10.0% \$2,657.34 In four years 0 5 10.00% \$0.00 In five years 0 4 10.00% \$0.00 In six years 0 3 10.00% \$0.00 In seven years 0 2 10.00% \$0.00 In eight years 0 1 10.00% \$0.00 In nine years 0 0 10.00% \$0.00 6944.51912 \$6,944.52

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FutureValue Compute the future value in year 9 of a \$2,000 deposit in year 1 and anot end of year 3 using a 10 percent interest rate
ther \$1,500 deposit at the

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Deposit \$ 900.00 Periods 5 Rate 8% FVA \$5,279.94 What is the future value of a \$900 annuity payment over five years if interest rates are 8 percent?
Amount Periods Rate PV Deposit today 0 10.0% \$0.00 In one year \$ 2,000.00 1 10.0% \$1,818.18 In two year \$ - 2 10.0% \$0.00 In third year \$1,500.00 3 10.00% \$1,126.97 \$2,945.15

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Compute the present value of a \$2,000 deposit in year 1 and another \$1,500 deposit at the end of year 3 if interest rates are 10 percent

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Unformatted text preview: Deposit \$ 900.00 Periods 5 Rate 8% PVA \$3,593.44 What’s the present value of a \$900 annuity payment over Fve years if interest rates are 8 percent? PVA \$8,500.00 period 6 intrest 9.5 PVAD \$9,307.50 If the present value of an ordinary, 6-year annuity is \$8,500 and interest rates ar PVA 6 due = 8,500 × (1 +0.095) = \$9,307.50 re 9.5 percent, what’s the present value of the same annuity due? APR EAR 10.00% 12 10.47% A loan is ofered with monthly payments and a 10 percent APR. Wha periods at’s the loan’s efecTve annual rate (EAR)? Loan amount \$ 25,000.00 Periods 48 Interest rate 0.09% Payment (\$532.40) 187.5 If only intrest was paid payments would be about \$188 a month and you would sTll owe the 25,000 at t the end of the loan term....
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• Fall '15
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