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Time Value of Money III

Time Value of Money III - from today for nine years if the...

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Time Value of Money III - Annuities_x000D_McLaughlin's "Fun with Finance" Brief Case Series r = 16% 9y 0 200 200 200 200 200 200 200 200 200 FV = ? FV = PV x FVIFA FV = 200 x 17.519 FV= $3,503.80 r = 16% 9y 0 200 200 200 200 200 200 200 200 200 PV = ? PV =  x FVIFA PV = 200 x 4.6065 FV= $921.30 r = 5% 50y 1y 2y 3y 0 $600  $600  $600  $600  FV = ? FV = 600 x FVIFA FV = 600 x 209.35 FV= $125,610.00 $400  $400  r = 8% $400  $600  1y 2y 3y 4y 5y 0 $400  $400  $400  $800  $1,000  PV = ? PV = 400 x PVIFA = 400*3.9927 = $1,597.08 PV = 400 x PVIF4y = 400*0.735   = $294.00 PV = 600 x PVIF5y = 600*0.6806 = $408.36 PV =  $2,299.44 Draw the time line for each  situation below: A. [10] What is the value nine years from today of $200 received each year  (starting one year from today) for nine years if the interest rate is 16%? B. [10] What is the value today of $200 received each year (starting one year 
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Unformatted text preview: from today) for nine years if the discount rate is 16%? into this account (starting one year from today) for 50 years earning 5% interest for the entire period? D. [20] What is the present value using 8% as the discount rate of the following projected income stream: $400 at the end of the first year; $400 at year 2; $400 at year 3; $800 at year 4; and $1,000 at year 5? Time Value of Money III - Annuities_x000D_McLaughlin's "Fun with Finance" Brief Case Series BOLSHOI E. [50] Enter the following into your calculator: 1045708 and turn your calculator over to read the name of a famous Russian ballet company....
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