4.8 - $35,000 X 6.145 (n=10, i=10%) = $215,075 $215,075 X...

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TIME VALUE OF MONEY  QUESTIONS (PAGES 1 -4) SOLUTIONS
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# 4 a) $10,000 X 7.336 (n=6, i=8%)  = $73,360 b) $10,000 X 14.192 (n=12, i=4%)  = $141,920 c) $10,000 X 767.09 (n=40, i=12%)  = $7,670,900
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# 5 a) $10,000 X 9.487 (n=7, i=8%)  = $94,870 - $10,000  = $84,870 b) $10,000 X 16.627 (n=13, i=4%)  = $166,270 -  $10,000 = $156,270 c) $10,000 X 930.38 (n=41, i=12%)  = $7,670,900 -  $10,000 = $7,660,900
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# 7 $250,000 X 1/(1+.10) 60 (n=60, i=10%)   = $821
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# 10 $50,000 X 1.469 (n=5, i=8%)  = $73,450 
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# 13 $40,000 X 0.452 (n=7, i=12%)  = $18,080 
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# 14 a) PV OF CONTRACT OVER 10 YRS $35,000  X 6.145 (n=10, i=10%)  = $215,075  a) PV OF CONTRACT DEFERRED 2 YRS
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Unformatted text preview: $35,000 X 6.145 (n=10, i=10%) = $215,075 $215,075 X 0.826 (n=2, i=10%) = $177,652 a) PV OF CONTRACT OVER 10 YRS BEG OF YR $35,000 X 5.759 (n=9, i=10%) = $201,565 + $35,000 =$236,565 # 19 PV @ $10,00 TODAY = $10,000 PV @ $2,00 /YR 8 YRS $2,000 X 5.146 (n=8, i=11%) = $10,292 PV OF $24,000 END OF 8 YRS $24,000 X 0.434 (n=8, i=11%) = $ 10,416 PV @ $2,00 /YR 8 YRS $2,000 X 4.968 (n=8, i=12%) = $9,936 PV OF $24,000 END OF 8 YRS $24,000 X 0.404 (n=8, i=12%) = $9,696...
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4.8 - $35,000 X 6.145 (n=10, i=10%) = $215,075 $215,075 X...

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