CHAPTER 6 HOMEWORK  SOLUTIONS
Ex. 6133
—Present and future value concepts.
On the right are six diagrams representing six different present and future value concepts
stated on the left. Identify the diagrams with the concepts by writing the identifying letter
of the diagram on the blank line at the left. Assume n = 4 and i = 8%.
Concept
Diagram of Concept
_____ 1.
Future value of 1.
?
$1
a.





_____ 2.
Present value of 1.
?
_____ 3.
Future value of an annuity
$1
$1
$1
$1
due of 1.
b.
    



_____ 4.
Future value of an ordinary
annuity of 1.
?
$1
$1
$1
$1
_____ 5.
Present value of an ordinary
c.



 
annuity of 1.
_____ 6.
Present value of an annuity
?
$1
$1
$1
$1
due of 1.
d.





$1
?
e.





$1
$1
$1
$1
?
f.





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View Full DocumentSolution 6133
1.
e
2.
a
3.
f
4.
b
5.
d
6.
c
Pr. 6141
—Present value and future value computations.
Part (a)
Compute the amount that a $20,000 investment today would accumulate at 10%
(compound interest) by the end of 6 years.
Part (b)
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 Spring '10
 Rogero
 Time Value Of Money, Tom, Judy Thomas

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