Answer the following questions. Be sure to show all your work- not just the answer. Follow
this format: cite the formula, then plug in numbers, then compute to show your final answer.
Be sure to solve according to the method that is requested.
2. Solve using the Rule of 72: rate = 8%, years = 18, pv = $7,000. Solve for fv.
3. Solve, using the Rule of 72 rate = 4%, years = 18, fv=$8,000. Solve for pv.
4. Solve, using the Rule of 72: rate =6%, pv=$7,000, fv= $56,000. Solve for years.
5. Solve, using the Rule of 72: pv=$10,000; fv=$160,000; years=10. Solve for rate.
Q6-Q9. Use appropriate tvm table. For each question, cite the appropriate table that you are
using, show the formula, and then plug-in your numbers to solve. Show all your work.
Q6 pv= $7,200 rate = 7% periods = 15 Solve for fv
Q7 fv=$15,000 rate = 15% periods = 10 Solve for pv
Q8 payment = $6,000 interest rate =8% number of periods = 10 Solve for pva
Q9 payment = $4,000 interest rate =10% number of periods = 20 Find fva
For Q10-Q13, you many use tvm tables, a financial calculator, or excel to solve. Be sure to