This preview shows pages 1–4. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: CHAPTER 6 SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 61 8% annual interest i = 8% PV = $15,000 FV = ? 0 1 2 3 n = 3 FV = $15,000 (FVF 3, 8% ) FV = $15,000 (1.25971) FV = $18,895.65 8% annual interest, compounded semiannually i = 4% PV = $15,000 FV = ? 0 1 2 3 4 5 6 n = 6 FV = $15,000 (FVF 6, 4% ) FV = $15,000 (1.26532) FV = $18,979.80 BRIEF EXERCISE 62 12% annual interest i = 12% PV = ? FV = $25,000 0 1 2 3 4 n = 4 PV = $25,000 (PVF 4, 12% ) PV = $25,000 (.63552) PV = $15,888 12% annual interest, compounded quarterly i = 3% PV = ? FV = $25,000 0 1 2 14 15 16 n = 16 PV = $25,000 (PVF 16, 3% ) PV = $25,000 (.62317) PV = $15,579.25 BRIEF EXERCISE 63 i = ? PV = $30,000 FV = $150,000 0 1 2 19 20 21 n = 21 FV = PV (FVF 21, i ) PV = FV (PVF 21, i ) OR $150,000 = $30,000 (FVF 21, i ) $30,000 = $150,000 (PVF 21, i ) FVF 21, i = 5.0000 PVF 21, i = .20000 i = 8% i = 8% BRIEF EXERCISE 64 i = 5% PV = $10,000 FV = $17,100 0 ? n = ? FV = PV (FVF n, 5% ) PV = FV (PVF n, 5% ) OR $17,100 = $10,000 (FVF n, 5% ) $10,000 = $17,100 (PVF n, 5% ) FVF n, 5% = 1.71000 PVF n, 5% = .58480 n = 11 years n = 11 years BRIEF EXERCISE 65...
View Full
Document
 Spring '10
 Lewis

Click to edit the document details