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# keownchap05 - CHAPTER 5 PROBLEMS THE TIME VALUE OF MONEY...

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Page  CHAPTER 5 PROBLEMS THE TIME VALUE OF MONEY PROBLEM 5-1 COMPOUND INTEREST A) Invest 5,000 Years 10 Percent 10% FV = B) Invest 8,000 Years 7 Percent 8% FV = C) Invest 775 Years 12 Percent 12% FV = D) Invest 21,000 Years 5 Percent 5% FV = PROBLEM 5-2 COMPOUND VALUE SOLVING FOR N A) Invest 500 FV 1,039.50 Percent 5%

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Page  N = B) Invest 35 FV 53.87 Percent 9% N = C) Invest 100 FV 298.60 Percent 20% N = D) Invest 53 FV 78.76 Percent 2% N = PROBLEM 5-3 COMPOUND VALUE SOLVING FOR I A) Invest 500 FV 1,948.00 Years 12 i = B) Invest 300 FV 422.10 Years 7
Page  i = C) Invest 50 FV 280.20 Years 20 i = D) Invest 200 FV 497.60 Years 5 i = PROBLEM 5-4 PRESENT VALUE A) FV 800 Years 10 Percent 10% PV = B) FV 300 Years 5 Percent 5% PV = C) FV 1,000 Years 8 Percent 3% PV = D) FV 1,000 Years 8 Percent 20% PV =

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Page  PROBLEM 5-5 COMPOUND ANNUITY A) Pymt 500 Years 10 Percent 5% FV = B) Pymt 100 Years 5 Percent 10% FV = C) Pymt 35 Years 7 Percent 7% FV = D) Pymt 25 Years 3 Percent 2% FV = PROBLEM 5-6 PRESENT VALUE OF AN ANNUITY A) Payment 2,500 Years 10 Percent 7%
Page  PV = B) Payment 70 Years 3 Percent 3% PV = C) Payment 280 Years 7 Percent 6% PV = D) Payment 500 Years 10 Percent 10% PV = PROBLEM 5-7 COMPOUND VALUE DATA PV 10,000 Percent 6% A) 1 year 5 years 15 years B) Percent 8% 10% 1 year 5 years

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Page  15 years PROBLEM 5-8 COMPOUND INTEREST WITH NONANNUAL PERIODS Deposited Rate Compound Years FV 1,000 10% 1 10 95,000 12% 12 1 8,000 12% 6 2 120,000 8% 4 2 30,000 10% 2 4 15,000 12% 3 3 PROBLEM 5-9
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## This note was uploaded on 04/16/2008 for the course FIN 100 taught by Professor N/a during the Spring '08 term at Baylor.

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keownchap05 - CHAPTER 5 PROBLEMS THE TIME VALUE OF MONEY...

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