Tim Gillespie Week 4 Homework

Tim Gillespie Week 4 Homework - Tim Gillespie Week 4...

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Unformatted text preview: Tim Gillespie Week 4 Chapter 9 Problems 2,4 and 9 Annual Interest Rate Term in Years Payment PV #2 a. 8.00% 7 $9,000.00 $5,251.41 b. 10.00% 5 $20,000.00 $12,418.43 c. 6.00% 25 $10,000.00 $2,329.99 d. 16.00% 50 $1,000.00 $0.60 Annual Interest Rate Term in Years Present Value FV #4 a. 9.00% 2 $9,000.00 $10,692.90 b. 12.00% 7 $9,000.00 $19,896.13 c. 14.00% 25 $9,000.00 $238,157.24 d. 14.00% 25 $9,000.00 $265,113.23 Annual Interest Rate Term in Years Investment Future Value #9 a. 6.00% 5 $2,000.00 $11,274.19 b. 10.00% 20 $2,000.00 $114,550.00 c 12.00% 40 $2,000.00 $1,534,182.84 While working on this problem, I noticed right away that I would love to put 60 cents into the bank today just to have $1000 in 50 years. It seems like a while, but for just 60 cents it would be worth it. All of these PV's depend on the length of the term and interest rates. The longer you leave money in the bank the more interset you accrue, so the present values are much lower for the longer term....
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This note was uploaded on 02/25/2012 for the course FINANCE 410 taught by Professor Conway during the Spring '12 term at Regis University.

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Tim Gillespie Week 4 Homework - Tim Gillespie Week 4...

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