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**Unformatted text preview: **2 ; n = 1(25) = 25
1 c
2
i2 = (1 + i1 ) âˆ’ 1 = (1.03 ) âˆ’ 1 = 0.0609 Same I/Y, N, PV, PMT P/Y 1 ENTER C/Y 2 ENTER CPT FV Ans: 55,564.96 (1 + i ) n âˆ’ 1
Substitute in FV = PMT i 25 1.0609 âˆ’ 1 giving FV = $1000 0.0609 = $55,564.96
c. m1 = 4, i1 =
c= m1
m2 = 4
1 6%
4 = 1.5%, m2 = 1 ; n = 1(25) = 25 Same I/Y, N, PV, PMT P/Y 1 ENTER C/Y 4 ENTER CPT FV Ans: 55,929.71 c
4
i2 = (1 + i1 ) âˆ’ 1 = (1.015) âˆ’ 1 = 0.061363551 1.06136355125 âˆ’ 1 FV = $1000 0.061363551 = $55,929.71 Then d. m1 = 12, i1 =
c= m1
m2 = 12
1 6%
12 = 0.5%, m2 = 1 ; n = 1(25) = 25 c
12
i2 = (1 + i1 ) âˆ’ 1 = (1.005) âˆ’ 1 = 0.061677812 Then 66 years, 1.06136355125 âˆ’ 1 FV = $1000 0.061363551 = $56,178.55 Same I/Y, N, PV, PMT P/Y 1 ENTER C/Y 12 ENTER CPT FV Ans: 56,178.55 Business Mathematics in Canada, 7/e Exercise 10.5 (continued)
7. Given: PMT = $1000; Term = 11 years; j = 6.5%; m = 1
Then i = 6.5% = 6.5%; n = 4(11) = 44;
1
c= 6.5 I/Y P/Y 4 ENTER C/Y 1 ENTER 44 N 400 PMT
0 FV CPT PV Ans: â€“12,598.41 Number of compoundings per year 1
=
= 0.25
Number of payments per year
4 i2 = (1 + i ) c âˆ’ 1 = (1.065 ) 0.25 â€“ 1 = 0.015868285
1 âˆ’ ( 1 + i ) âˆ’ n PV = PMT a.
i 1.015868285 âˆ’44 âˆ’ 1 = $400 0.015868285 = $12,598.41 (1 + i ) n âˆ’ 1 b. FV = PMT i 1.015868285 44 âˆ’ 1 = $400 0.015868285 = $25,186.12
9. Given: i = Same I/Y, P/Y, C/Y
Same PMT, N,
0 PV CPT FV Ans: â€“25,186.12 8%
12 = 0. 6 % ; n = 2(3.5) = 7;
Number of compoundings per year 12
c=
=
=6
Number of payments per year
2 ( ) 6
i2 = (1 + i ) c âˆ’ 1 = 1.00 6 â€“ 1 = 0.040672622
1 âˆ’ ( 1 + i ) âˆ’ n a. PV = PMT i 1 âˆ’ 1.040672622 âˆ’7 = $2750 0.040672622 = $16,464.70 (1 + i ) n âˆ’ 1 1.040672622 7 âˆ’ 1 = $2750 b. FV = PMT 0.040672622 i = $21,764.70 8 I/Y P/Y 2 ENTER C/Y 12 ENTER 7 N 2750 PMT
0 FV CPT PV Ans: âˆ’16,464.70 Same I/Y, P/Y, C/Y
Same PMT, N,
0 PV CPT FV Ans: â€“21,764.70 Exercise 10.5 (continued)
11. i =
c= 5.25%
12 = 0.4375%; n = 17; Number of compoundin gs per year 12
=
= 12
Number of payments per year
1 i2 = (1 + i ) c â...

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