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# Ch.5Answers (1) - Chapter 5 answers 1 PV N I FV A 7,000 10...

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Chapter 5 answers 1. A B C D PV 7,000 5,000 1,000 15,000 N 10 7 12 5 I 10 9 15 5 FV 18,156.20 9,140.20 5,350.25 19,144.22 2. A B C D PV 800 50 10,000 300 FV 1,300 65 14,000 500 I 8 5 10 3 N 6.3 5.38 3.53 17.28 3. A B C D PV 500 700 70 10,000 FV 1700 900 275 16,000 N 10 8 15 5 I 13.02 3.19 9.55 9.86 4. A B C D FV 1,000 300 10,000 1,000 N 5 10 8 15 I 7 10 20 3 PV 712.99 115.66 2,325.68 641.86 5. A B C D Pmt 700 200 1,000 10,000 N 10 5 8 3 I 10 5 3 8 FV 11,156.20 1,105.13 8,892.34 32,464 6. A B C D Pmt 5,000 500 300 1,000 N 10 10 7 3 I 7 7 3 10 PV 35,117.91 3,511.79 1,869.08 2,486.85 7.

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a. N= 5 N= 10 N= 15 PV 20,000 20,000 20,000 I 5 5 5 FV 25,525.63 32,577.89 41,578.56 b. N= 5 N= 5 N= 10 N= 10 N= 15 N= 15 PV 20,000 20,000 20,000 20,000 20,000 20,000 I 7 12 7 12 7 12 FV 28,051.03 35,246.83 39,343.03 62,116.96 55,180.63 109,471.32 c. As interest rates and time increases, future sums also increase. 8. Please note that I have left the calculator in one payment per period mode. Tara Kratzer Kevin Beckstad Karin Crawford Rich Lytle Bob Vance PV 4,000 75,000 10,000 40,000 150,000 I 9 11/2 10/3 8/4 12/12 N 12 10 x 2 15 x 3 5 x 4 8 x 12 FV 11,250.66 218,831.82 43,734.06 59,437.90 389,890.94 9. a. PV= 8,000, N= 10, I= 8, FV= 17,271.40 b. PV= 8,000, N= 10 x 2, I= 8/2, FV= 17,528.99 PV= 8,000, N= 10 x 12, I= 8/12, FV= 17,757.12 c. PV= 8,000, N= 10, I= 10, FV= 20,749.94 PV= 8,000, N= 10 x 2, I= 10/2, FV= 21,226.38 PV= 8,000, N= 10 x 12, I = 10/12, FV= 21,656.33 d. PV= 8,000, N= 15, I= 8, FV= 25,377.35 e. As compounding periods, interest rates, and time horizons increase, the future sums of money will also increase.
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