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