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Mathematics2

# Mathematics2 - Solving For k Or n Example Assume you have...

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1 Solving For k Or n Example: Assume you have \$1,200 to invest and want to know how long it will take for that sum to grow to \$3,000 if invested in a CD at 7%:

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2 Solving For k Or n Example: Assume you have \$1,200 to invest and want to know how long it will take for that sum to grow to \$3,000 if invested in a CD at 7%:
3 Example: Assume that you have \$1,200 and want to know what the interest rate would have to be in order for you to have \$3,000 in 10 years. Solving For k Or n

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4 Example: Assume that you have \$1,200 to invest and want to know what the interest rate would have to be in order for you to have \$3,000 in 10 years. Solving For k Or n
5 PV & FV Of Multiple Cash Flows Value Additivity: The PV (FV) of a stream of cash flows is the sum of the PV (FV) of individual cash flow. Example: You have told your sister, a high-school senior, to budget \$400, \$500, \$600, \$400 for books and educational supplies for her four years at college. What is the PV of these future cash flows if the appropriate interest rate is 7%?

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6 Annuity Annuity:
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