{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Revision Lecture

# Revision Lecture - Managerial Finance Dr Rania Salem...

This preview shows pages 1–7. Sign up to view the full content.

Dr. Rania Salem/Managerial Finance Spring 2011 Managerial Finance Dr. Rania Salem Department of Finance Spring term 2011- Revision Lecture Time Value of Money

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

View Full Document
Practice Problems 1) What is the future value of \$100 received today and deposited in an account for four years paying annual interest of 6 percent is : Dr. Rania Salem/Managerial Finance Spring 2011/2
Practice Problems 1) PV = \$ 100 , n= 4 , i= 6% FV = 100* (1+ 0.06) 4 = \$ 126.25 OR FV = 100 * FVIF (6% ,4) = 100 * 1.262 = \$ 126.2 Dr. Rania Salem/Managerial Finance Spring 2011/3

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

View Full Document
Practice Problems 2) Calculate the future value of \$4,600 received today if it is deposited at 9 percent for three years. Dr. Rania Salem/Managerial Finance Spring 2011/4