chapter 8 hw - 8-1The time value of money means that money...

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Unformatted text preview: 8-1The time value of money means that money you hold in your hand today is worth more than the same amount of money you expect to receive in the future. 8-2Positive interest rates indicate money has time value. Similarly, people would rather consume now than later.8-3Compound interests is interest earned on investments, interest earned on interest and on the original principal. 8-110000.0751402.5528-2Future ValuePVKn = a)50,00010 $ 50,000.00 b)50,0000.0510 $ 81,444.73 c)50,0000.110 $ 129,687.12 d)50,0000.210 $ 309,586.82 8-35,0000.0810 $ 10,794.62 8,4Future ValuePVKn = a)100,0000.0315 $ 155,796.74 b)100,0000.0615 $ 239,655.82 c)100,0000.0915 $ 364,248.25 d)100,0000.1215 $ 547,356.58 8-5Future ValuePVKn = a)50,0000.125 $ 541,735.30 b)75,0000.125 $ 812,602.95 c)100,0000.125 $ 1,083,470.59 d)125,0000.125 $ 1,354,338.24 8-6Future ValuePVKn = a)60,0000.125 $ 105,740.50 b)60,0000.1210 $ 186,350.89 186,350....
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chapter 8 hw - 8-1The time value of money means that money...

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