Solving for PV

Solving for PV - $20,000 after 5 years if you deposit...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
Solving for PV You want to buy an $8,000 car three years from today. You earn 5% in your savings account. How much do you need to deposit today? Solve for PV Enter 3, then N 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2
Background image of page 2
3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Solving for I/Y – Single Period One year ago, your investments were worth $62,239. Today, they are worth $67,143. What was your rate of return last year? Solve for I/Y Enter 1, then N 4
Background image of page 4
Solving for I/Y – Multiple Periods A museum owns a rare painting valued at $6.2 million. It paid $1.24 million for it 11 years ago. What is the rate of appreciation? Solve for I/Y Enter 11, then N 5
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
6
Background image of page 6
7
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Solving for I/Y – Multiple Periods Bank A offers to pay you a lump sum of
Background image of page 8
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 10
Background image of page 11
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $20,000 after 5 years if you deposit $9,500 with them today. Bank B, on the other hand, says that they will pay you a lump sum of $22,000 after 5 years if you deposit $10,700 with them today. Which offer should you accept, and why? 8 Solving for I/Y Multiple Periods Bank A offers to pay you a lump sum of $20,000 after 5 years if you deposit $9,500 with them today. Bank B, on the other 9 Bank A Solve for I/Y Enter 5, then N Enter 9500, then +/-, then PV Enter 0, then PMT Enter 20000, then FV Enter CPT , then I/Y 16.05% 10 11...
View Full Document

Page1 / 11

Solving for PV - $20,000 after 5 years if you deposit...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online