Week 4 Homework Culley

# Week 4 Homework Culley - Pg.278 2 PV=FV(1)^Year a...

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Pg.278 What is the present value of: 2 PV=FV/(1+%)^Year a 8000 in 10 years at 6%? Future Vale  \$8,000  Years 10 Annual Rate 6% Present Value \$4,467.16  b \$16000 in 5 years at 12%? Future Vale  \$16,000  Years 5 Annual Rate 12% Present Value \$9,078.83  c \$25000 in 15 year at 8%. Future Vale  \$25,000  Years 15 Annual Rate 8% Present Value \$7,881.04  Pg. 279 5 If you invest \$12000 today ho much will you have: 10 FV=PV(1+i)^n or FV(rate,nper,pmt,pv,type) a a In 6 years at7%? Present Value  \$(12,000) Annual Rate 7% Years 6 Future Value \$18,008.76 b b In 15 Years at12%? Present Value  \$(12,000) Annual Rate 12% Years 15 Future Value \$65,682.79 c In 25 Years at 10%? c Present Value  \$(12,000) Annual Rate 10% Years 25 Future Value \$130,016.47 In 25 Years at 10% (compound semiannualy)? d d Present Value  \$(12,000)

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Annual Rate 10% Years 50 Semiannualy 2 5.00% Future Value \$137,608.80 15 Sherwin Williams Present Value  \$18,000  Annual Rate 10% Years 25 Future Value \$195,024.71 \$19,502.47 \$19,502.47 \$175,522.24 \$160,000.00 \$335,522.24 He will lose \$335,522.24. No sale!
How much would you have to invest today to receive: 12000 in 6 years at 12%?

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