FIN200 Week 9 Capstone CheckPoint

FIN200 Week 9 Capstone CheckPoint - $10692.90 (b) A =...

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WEEK 9 Capstone Checkpoint FIN 200   Gregory Mann 3. (a) PV (2 years from now) = FV * 0.926 = 5000 * 0.926 =  $4630  (b) PV (1 year from now) = FV * 0.926 = 4630 * 0.926 =  $4287.38  (c) PV (Today) = 4287.38 * 0.926 =  $3970.11  (d)   Verification: 5000 * 0.794 =  $3970, which is the same as that got in (c) - $.11   (4) A = P(1 + r/100n)^(nt)  (a) A = 9000(1 + 9/100)^2 =  or (9000 x 1.09) + (9810 x 1.09) = 
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Unformatted text preview: $10692.90 (b) A = 9000(1 + 12/100)^7 = $19896.13 (c) A = 9000(1 + 14/100)^25 = $238157.24 (d) A = 9000(1 + 14/200)^50 (every 6 months)= $265113.23 (5) We calculate the PV first. PV = FV/(1 + r/100)^t = 30000/(1 + 12/100)^50 = $103.81 Since $103.81 > $95, The choice would be $30000 50 years from now ....
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This note was uploaded on 10/21/2010 for the course FIN 200 AAAA0RWSC4 taught by Professor Mchenry during the Spring '10 term at University of Phoenix.

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