hw10-2 - Math 1160 Section 10.2 Answer Key 2a. i = .005 or...

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Math 1160 – Section 10.2 Answer Key 2a. i = .005 or .5% n = 240 R = $520 P = $72582 2b. i = .02 or 2% n = 20 R = $700 P = $11446 4. $626.02 (outflow of cash to you) N = 14 I% = 2 PV = 0 PMT = ? FV = 10000 6. $7360.09 (outflow of cash to you) N = 10 I% = 6 PV = ? PMT = 1000 FV = 0 8a. $18,498.93 (inflow of cash to you) N = 20 I% = 1.5 PV = 0 PMT = -800 FV = ? 8b. $2498.93 (inflow of cash) b $18,498.93 - $16,000 ($800 x 20 payments) OR Σ Int (1,20) will sum the interest from compounding periods 1 through 20. 10. $372.80 (outflow of cash each quarter) N = 12 I% = 2 PV = 0 PMT = ? FV = 5000 $526.40 interest b $5000 - $4473.60 ($372.80 x 12 payments) OR Σ Int (1,12) will sum the interest from compounding periods 1 through 12.
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14. $123.36 (inflow of cash) N = 12 I% = .5 PV = 0 PMT = -10 FV = ? 18. $750 per quarter is better. (Find the FV of receiving $750 per quarter for 3 years and compare that value to $10,000. Which is better?) N = 12 I% = 2 PV = 0 PMT = -750 FV = Calculated as $10,059.07
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hw10-2 - Math 1160 Section 10.2 Answer Key 2a. i = .005 or...

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