Samantha Karp capstone fin200

Samantha Karp capstone fin200 - = 9,000 x 1.188 = $10,692...

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Samantha Karp Capstone CheckPoint: Present Value, Future Value, and Annuity Due Fin 200 3a. FV = 5,000; rate = 8%; N = 1 years; PV =? PV = FV x PVIF8%, 1 year = 5,000 x 0.926 = $4,630 3b. FV = 4,630; rate = 8%; N = 1 years; PV =? PV = FV x PVIF 8%, 1 year = 4,630 x 0.926 = $4,287.38 3c. FV = 4,287.38; rate = 8%; N = 1 years; PV =? PV = FV x PVIF 8%, 1 year = 4,287.38 x 0.926 = $3,970.11 3d. FV = 5,000; rate = 8%; N = 3 years; PV =? PV = FV x PVIF 8%, 3 year = 5,000 x 0.794 = $3,970 4a. PV = 9,000; rate = 9%; N = 2 years FV = PV x FVIF 9%, 2 years
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Unformatted text preview: = 9,000 x 1.188 = $10,692 4b. PV = 9,000; rate = 12%; N = 7 years FV = PV x FVIF 12%, 7 years = 9,000 x 1.188 = $10,692 4c. PV = 9,000; rate = 9%; N = 2 years FV = PV x FVIF 9%, 2 years = 9,000 x 2.211 = $19,899 4d. PV = 9,000; rate = 14%/2 = 7%; N = 25 x 2 = 50years FV = PV x FVIF 7%, 50 years = 9,000 x 29.456 = $265,104 5. FV = 30,000; N = 50 years; Rate = 12% PV = FV x PVIF 12%, 50 years = 30,000 x 0.003 = $90 OR PV = $95 I would go with the second option and accept $95 today....
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This note was uploaded on 10/30/2010 for the course FIN 320 ASDFI taught by Professor Asdf during the Spring '09 term at University of Phoenix.

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Samantha Karp capstone fin200 - = 9,000 x 1.188 = $10,692...

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