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FV-PV - a house.You have $25,000 to invest and you need...

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PV = 10,000 NPER = 5 Use the FV formula: RATE = 8%(Same as .08) FV(rate,nper,pmt,pv) Compute FV = $14,693.28 You have $10,000 to invest. You will need the money in 5 years and you expect to earn 8% per year. How much will you have in 5 years?
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FV = 20,000 NPER = 10 Use the PV formula: RATE = 6%(Same as .06) PV(rate,nper,pmt,fv) PV = $11,167.90 You'll need $20,000 in 10 years for your girlfriend's engagement ring. If you can earn 6% per year, how much do you need to invest today?
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PV = 25,000 FV = 60,000 Use the RATE formula: NPER = 3 RATE(nper,pmt,pv,fv) RATE = 33.89% You had the ring, and proposed, and she said 'Yes!!!'. Now it's time to buy
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Unformatted text preview: a house.You have $25,000 to invest and you need $60,000 for a down payment and closing costs on a house. If you want to buy the house in 3 years, what rate of interest do you need to earn? PV = 15,000 FV = 45,000 Use the NPER formula: RATE = 9%(Same as .09) NPER(rate,pmt,pv,fv) NPER = 12.7482years You're happily married, you've the house, now you want to upgrade your car. You can invest $15,000 right now and you figure you will need $45,000 to buy a nice car. If you can earn 9% per year, how long before you can buy the car?...
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