Finance Ch. 3 evens

# Finance Ch. 3 evens - Janine Nipal Ch 3 evens 2 a.25...

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Janine Nipal Ch. 3 evens 2) a) .25 FV=PV(1+r)^n FV=25,000(1.25)^5=\$76,293.95 b) .12 FV=25,000(1.12)^5 = \$44,058.54 c) .07 FV=25,000(1.07)^5 = \$35,063.79 d) .0 FV 25,000(1.0)^5 = \$25,000 4) a) .25 PV=30,000/(1.25)^7 = \$6,291.47 b) .12 PV=30,000/(1.12)^7 = \$13,570.48 c) .07 FV=25,000(1.07)^5 = \$35,063.79 d) .0 PV=30,000/(1.0)^7 = \$30,000 6) a) 30,000=25,000(1.09)^x 1.2=(1.09)^x log(1.2)/log(1.09) = 2.12 years b) 40,000=25,000(1.09)^x 1.6=(1.09)^x log(1.6)/log(1.09) = 5.45 years c) 75,000=25,000(1.09)^x 3=(1.09)^x log(3)/log(1.09) = 12.75 years d) 100,000=25,000(1.09)^x 4 = (1.09)^x log(4)/log(1.09) = 16.09 years 8) a) 20,000=17,500(1+r)^8 1.143=(1+r)^8 1.017=1+r i = 1.68% b) 25,000=17,500(1+r)^8 1.04559=1+r 4.56%=r c) 35,000=17,500(1+r)^8 1.0905=1+r 0.0905=r d) 50,000=17,500(1+r)^8 1.14023=1+r 14.02% 10) 25,000 5 years FV=PMT (1+i)^n-1/i 25,000 12) a) 5 FV=3000(1.08)^5-1/.08 = \$17,599.80 b) 10 FV=3000(1.08)^10-1/.1 = \$43,459.69 c) 15 FV=3000(1.08)^15-1/.2 = \$81,456.34 d) 20 FV=3000(1.08)^20-1/.2 = \$137,285.89 14) a) FV=3000(1.08)^6-1/.08 = \$19,007.79

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b) FV=3000(1.1)^6-1/.1 = \$46,936.85 c) FV=3000(1.15)^6-1/.2 = \$87,972.85 d) FV=3000(1.2)^6-1/.2= \$148,268.76 16) a).03 50,000=PMT(1.03)^10-1/.03 = -\$4,361.53 b) .05 50,000=PMT(1.05)^10-1/.05 = -\$3,975.23 c) .07 50,000=PMT(1.07)^10-1/.07 = -\$3,618.88 d) .09 50,000=PMT(1.09)^10-1/.09 = -\$3,291.00 18) a) i=3 / 50,000=PMT(1.03)^11-1/.03 = -\$4,234.49 b) i=5 / 50,000=PMT(1.05)^11-1/.05 = -\$3,785.93 c) i=9 50,000=PMT(1.09)^11-1/.09 = \$3,019.27 20) a) 2 years / PV=1500(1-(1.12)^-2/.12) = \$2,535.08 b) 5 years / PV=1500(1-(1.12)^-5/.12) = \$5,407.16
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