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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...
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 Spring '12
 VictorWakeling
 I/Y

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