Math 1160 – Section 10.1 Answer Key
2a
.
i = .06 or 6%
n = 3
2b
.
i = .005 or .5%
n = 54
2c.
i = .0225 or 2.25%
n = 15
4a.
i = .000865 or .0865%
n = 52
P = $7170.12
F = $7500
4b
.
i = .005 or .5%
n = 360
P = $3000
F = $18,067.73
4c
.
i = .02 or 2%
n = 1524
P = $24
F = $306,812,469,900,000
6
.
$8203.48
N = 10
I % = 2
10000
PV = ?
OR
(1 + .02)
10
PMT = 0
FV = 10000
8.
$1075.72
N = 365
I% = 7.3/365 = .02
PV = 1000
OR
1000(1 + .0002)
365
PMT = 0
FV = ?
10
.
Balance = $2638.96
Interest = $638.96
(FV – PV)
N = 14
I% = 2
PV = 2000
OR
2000(1 + .02)
14
PMT = 0
FV = ?
12a.
$3047.82
N = 60
I% = 2
10000
PV = ?
OR
(1 + .02)
60
PMT = 0
FV = 10000
12b
.
$10,000  $3047.82 = $6952.18
(FV – PV = interest earned)
14.
$7870.98
N = 48
I% = .5
10000
PV = ?
OR
(1 + .005)
48
PMT = 0
FV = 10000
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$7000 now is more profitable.
Compare the value of both options in 9 years.
Find the FV of
the $7000 invested for 9 years and compare its value to $10,000 received in 9 years.
Which one is greater?
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 Spring '08
 copeland
 Math

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