Revision Lecture

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

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Dr. Rania Salem/Managerial Finance Spring 2011 Managerial Finance Dr. Rania Salem Department of Finance Spring term 2011- Revision Lecture Time Value of Money
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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
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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
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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
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Practice Problems 2) PV= $4,600 , n= 3 , i= 9% FV = 4,600 * FVIF (9% , 3) = 4,600 * 1.295 = $ 5,957 OR FV = 4,600 * (1+ 0.09) 3 = 4,600 * 1.295029 = $ 5,957 Dr. Rania Salem/Managerial Finance Spring 2011/5
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Practice Problems 3) Jeanie has deposited $33,000 today in an account which will earn 10 percent annually. She plans to
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This note was uploaded on 04/08/2011 for the course MGMT 401 taught by Professor Mohamed during the Spring '11 term at Manor.

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

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