{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# hw10-2 - Math 1160 Section 10.2 Answer Key 2a i =.005 or.5...

This preview shows pages 1–3. Sign up to view the full content.

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.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 3

hw10-2 - Math 1160 Section 10.2 Answer Key 2a i =.005 or.5...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online