Time Value of Money IV

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

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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 FVIF@8%?Y 9,995 = 5,000 x FVIF@8%?Y FVIF@8%?Y2 Look at the Table Y = 9 r=24% y=? PV = 15,000 FV = 600,585 FV = PV x FVIF@24%?Y 600,585 = 15,000 x FVIF@24%?Y FVIF@24%?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)
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

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

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online