Problem Set Chap 2 FV

Problem Set Chap 2 FV - Kyle Woods Problem Set Future Value...

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Kyle Woods Stendardi T-R 9:30 – 10:50 1. 10,000 * 1.1 = $11,000 11,000 * 1.1 = $12,100 12,100 * 1.1 = $13,310 13,310 * 1.1 = $14,641 14,641 * 1.1 = $16,105.1 After five years you would have $16,105.10 in your account after 5 years. 6. 300 * FVOAF (n=5, i=7) = 300 * 5.7507 = $1,725.21 If it were an annuity due the amount would be $1,845.97 (1,725.21*1.07) 10. a) 500 * (fvf n=10, i=6) = 500 * 1.7908 = $895.40 b) 500 * (fvf n=10, i=6) = 500 * 3.1058 = $1,552.90 11. a) FV = PV (1+i)^n 12 = 6 (1+i)^4 2= (1+i)^4 14% = 1.9254 15% = 2.0114 x/1 * .0746/.086 x=.08674 i = 14.8674% b) No the person who made that statement would not be correct because the value of money is changing all the time. $2,000,000 now is not the same as $2,000,000 15 years ago or the same as $2,000,000 15 years from now. 13.a) 400=200(FVIF 7,n) 2=(FVIF 7,n) n=10 years b) 400=200(FVIF 10,n) 2=(FVIF 10,n) n=7.5 years
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This note was uploaded on 04/28/2008 for the course FIN 315 taught by Professor Stendardi during the Spring '08 term at St. John Fisher College.

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Problem Set Chap 2 FV - Kyle Woods Problem Set Future Value...

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