Time Value of Money IV

# Time Value of Money IV - Time Value of Money IV Time and...

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Time Value of Money IV - Time and Interest_x000D_McLaughlin's "Fun with Finance" Brief Case Series Draw the time line for each situation below: r=8% y=? PV=5,000 FV=9,995   FV = PV x [email protected]%?Y 9,995 = 5,000 x [email protected]%?Y [email protected]%?Y2 Look at the Table Y = 9 r=24% y=? PV = 15,000 FV = 600,585 FV = PV x [email protected]%?Y 600,585 = 15,000 x [email protected]%?Y [email protected]%?Y =  40.04 Look at the Table Y = 17 Years r = ? y = 11 PV = 6,000 FV = 27,914 FV = PV x FVIF@?R11y 27,914 = 6,000 x FVIF@?R11y FVIF@?R11y4.65 Look at the Table R = 15% r = ? y = 24 PV = 1,000 FV = 5111.70 FV = PV x FVIF@?R24y 5111.70 = 1,000 x FVIF@?R24y FVIF@?R24y5.11 Look at the Table R = 7% A. [15] How long will it take to see \$5,000 grow to 9,995 if the annual interest  rate is 8%? (time of a lunp sum) B. [15] How long will it take for \$15,000 to grow to \$600,585 if we could earn  24% annually on our money? (time of a lump sum)

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## This note was uploaded on 04/27/2009 for the course FRL 301 taught by Professor Carney during the Spring '08 term at Cal Poly Pomona.

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Time Value of Money IV - Time Value of Money IV Time and...

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