# CH4 - =3,700/1,941 =1.91 = 1.07^t 3,700 32,805 21.78 years...

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1. First Bank Present Value Years Interest Rate Calculation Future Value \$ 8,000 10 7% Simple =(8,000 * .07 * 10) +8,000 \$ 13,600 8,000 10 8% compound =8,000 * 1.08^10 17,271.40 Second city bank would earn 3,671.40 more (17,271.40-13,600) 2. Present Value Years Interest Rate Calculation Future Value \$ 3,150 6 18% =3,150*1.18^6 \$ 8,503.60 8,453 19 6% =\$8,453*1.06^1 9 25,575.39 89,305 13 11% =89,305*1.11^1 3 346,796.34 227,382 29 5% =227,382*1.05^ 29 935,935.14 3. Present Value Years Interest Rate Calculation Future Value \$ 10,823.02 12 4% =17,328/ (1.04^12) \$ 17,328 29,411.69 4 9% =41,517/(1.09^4) 41,517 128,928.43 16 12% =790,382/ (1.12^16) 790,382 72,388.42 21 11% =647,816/ (1.11^21) 647,816 5. Present Value Years Interest Rate Calculation Future Value \$ 250 17.25 years 9% =1,105/250 =4.42 = 1.09^t \$ 1,105 1,941 9.54 years 7%

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Unformatted text preview: =3,700/1,941 =1.91 = 1.07^t 3,700 32,805 21.78 years 12% =387,120/32,80 5 =11.80 = 1.12^t 387,120 32,500 10.39 years 19% =198,212/32,50 0 =6.10 = 1.19^t 198,212 6. Present Value Years Interest Rate Calculation Future Value \$ 50,000 18 years 10.86% =320,000/50,00 = 6.4^(1/18) \$ 320,000 9. Present Value Years Interest Rate Calculation Future Value \$ 25,000 58.93 years 3.2% =160,000/25,00 0 =6.4 = 1.032^t \$ 160,000 15. Present Value Years Rate of Return Calculation Future Value \$ 12,377,500 4 years-4.46 =10,311,500/12,377,5 00 =.8331^(1/4) \$ 10,311,500 19. Present Value Years Interest Rate Calculation Future Value \$ 13,000 6 years 9% =13,000*1.09^ 6 \$ 21,802.30...
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CH4 - =3,700/1,941 =1.91 = 1.07^t 3,700 32,805 21.78 years...

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