agec problems 1

agec problems 1 - Serenity Witten AGEC 424 Problems 1 1 PV...

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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%
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4. PV = FV [PVF k,n ] a. $856 = $1,122 [PVF 7,n ] PVF 7,n = .7629 n = 4 years b. $450.00 = $725.50 [PVF 1,n ] PVF 1,n = .6203 n = 48 months = 4 years c. $5,000 = $6,724.44 [PVF 2.5,n ] PVF
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This note was uploaded on 11/08/2010 for the course AGEC 424 taught by Professor Staff during the Spring '08 term at Purdue.

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agec problems 1 - Serenity Witten AGEC 424 Problems 1 1 PV...

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