Serenity Witten
AGEC 424
Problems 1
1.
PV = FV [PVF
k,n
]
a.
PV = $10,000 [PVF
9,3
]
= $10,000 (.7722)
= $7,722
b.
PV = $10,000 [PVF
1,36
]
= $10,000 (.6989)
= $6,989
c.
PV = $10,000 [PVF
2,12
]
= $10,000 (.7885)
= $7,885
d.
PV = $10,000 [PVF
1.5,36
]
= $10,000 (.5851)
= $5,851
2.
FV = PV [FVF
k,n
)
a.
FV = $4,500 [FVF
7,9
] = $4,500 (1.8385) = $8,273.25
b.
FV = $4,500 [FVF
5,12
] = $4,500 (1.7959) = $8,081.55
c.
FV = $4,500 [FVF
2,20
] = $4,500 (1.4859) = $6,686.55
d.
FV = $4,500 [FVF
1,120
] = $4,500 (3.3004) = $14,851.80
3.
FV = PV [FVF
k,n
]
a.
$555 = $500 [FVF
k,1
]
FVF
k,1
= 1.1100
k = 11%
b.
$2,078.66 = $1,850.00 [FVF
k,2
]
FVF
k,2
= 1.1236
k = 6%
c.
$1,114.46 = $750.00 [FVF
k,20
]
FVF
k,20
= 1.4859
k = 2%
k
nom
= 8%
d.
$21,364.24 = $12,500.00 [FVF
k,36
]
FVF
k,36
= 1.7091
k = 1.5%
k
nom
= 18%