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Unformatted text preview: Solve for I = 22.5% 4.37 Practice Questions A saver places $1,000 in a certificate of deposit that matures after 10 years and pays 70/0 interest, which is compounded annually until the certificate matures. How much interest will the saver earn if the interest is left to accumulate? N=lO PV = 1000 1= 7 PMT=O Solve for FV = 1,967 4.38 Practice Questions If a person currently earns $10,000 and inflation continues at 4% for 10 years, how much must the person ma ke to maintain purchasing power? N= 10 PV = 10000 PMT=O 1=4 Solve for FV = 14802 4.39 Practice Questions The Redskins have 30,000 spectators per game and anticipate annual growth in attendance of 90/0. If their stadium holds 65,000 people, how long will it take to fill up the stadium? PV = 30000 FV = 65000 1=9 PMT=O Solve for N = 8.97 years 4.40 Practice Questions You want your salary to double in 6 years. At what annual rate of growth must your salary increase to achieve your goal? N=6 PV=l FV=2 PMT=O Solve for I = 12.24% 4.41...
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 Fall '08
 WHITE
 Corporate Finance, Interest

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