Ch.5 Homework - r=(12:(38,260/24,099))+1 r=3.9271% C. (1+r)...

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Kevin Wallace Ch.5 Homework 1. A. (1+r)^(30)=100,000 (1+r)^(30)= (100,000/24,099)=4.149549774 1+r= √30:(100,000/24,099)=1.048576288 r=(√30:(100,000/24,099))+1 r = 4.8576% B. (1+r) ^(12) = 38,260 (1+r)^(12) = (38,260/24,099)=1.587617743 1+r= √12: (38,260/24,099)=1.0587617743
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Unformatted text preview: r=(12:(38,260/24,099))+1 r=3.9271% C. (1+r) ^(18)= 100,000 (1+r)^(18)=(100,000/38,260)=2.613695766 1+r= 18:(100,000/38,260))+1 r=5.4826% 2. 20,000x1.084^6 = $32,449.32 = $32,500 in eight years...
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