Solving for PV

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

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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

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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
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

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Solving for I/Y – Multiple Periods Bank A offers to pay you a lump sum of

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

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