PV fun - $1.10 12 $0.01 $1.10 13 $0.01 $1.11 14 $0.01 $1.12...

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In January you get a penny and it is doubled every day for a month. How much would it be worth at the end of the month? Day Received Balance 1 $0.01 $0.01 2 $0.01 $0.02 3 $0.02 $0.04 4 $0.04 $0.08 5 $0.08 $0.16 6 $0.16 $0.32 7 $0.32 $0.64 8 $0.64 $1.28 9 $1.28 $3 10 $2.56 $5 11 $5.12 $10 12 $10.24 $20 13 $20.48 $41 14 $40.96 $82 15 $81.92 $164 16 $163.84 $328 17 $327.68 $655 18 $655.36 $1,311 19 $1,310.72 $2,621 20 $2,621.44 $5,243 21 $5,242.88 $10,486 22 $10,485.76 $20,972 23 $20,971.52 $41,943 24 $41,943.04 $83,886 25 $83,886.08 $167,772 26 $167,772.16 $335,544 27 $335,544.32 $671,089 28 $671,088.64 $1,342,177 29 $1,342,177.28 $2,684,355 30 $2,684,354.56 $5,368,709 31 $5,368,709.12 $10,737,418
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Invest today $1 Interest Rate 10% Compounding Monthly Month Interest Ending $1 1 $0.01 $1.01 2 $0.01 $1.02 3 $0.01 $1.03 4 $0.01 $1.03 5 $0.01 $1.04 6 $0.01 $1.05 7 $0.01 $1.06 8 $0.01 $1.07 9 $0.01 $1.08 10 $0.01 $1.09 11 $0.01
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Unformatted text preview: $1.10 12 $0.01 $1.10 13 $0.01 $1.11 14 $0.01 $1.12 15 $0.01 $1.13 16 $0.01 $1.14 17 $0.01 $1.15 18 $0.01 $1.16 19 $0.01 $1.17 20 $0.01 $1.18 21 $0.01 $1.19 22 $0.01 $1.20 23 $0.01 $1.21 FORMULA FORMULA REF'S 24 $0.01 $1.22 $1.22 =-FV(C3/12,A31,,C2) Graduate college and decide you have earned the right to a brand new car! But is it worth it? You have $5k. You can buy a real good used car or you can use that as a down on a new one. Buy New: Payment 300 Period 60 In 5 years, you have nothing but a 5 year old car worth about $3k Buy Used Monthly Investment 300 Rate of return 10% Period 60 60 Value at end of 5 years $23,231.12 Now put that into a mutual fund until you are 65 PV $23,231.12 Rate of return 10% Value 40 years later $1,247,526.64 Then you buy a T-bill and get tax free interest per month of $7,277.24...
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PV fun - $1.10 12 $0.01 $1.10 13 $0.01 $1.11 14 $0.01 $1.12...

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