agec problems 1

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

This preview shows pages 1–3. Sign up to view the full content.

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%

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

View Full Document
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
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 11/08/2010 for the course AGEC 424 taught by Professor Staff during the Spring '08 term at Purdue.

### Page1 / 3

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

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online