040 c for m2 12 c m1 m2 4 12 i2 1 i1 1 c

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Unformatted text preview: 2 ; n = 1(25) = 25 1 c 2 i2 = (1 + i1 ) − 1 = (1.03 ) − 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 − 1 Substitute in FV = PMT i 25 1.0609 − 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 ) − 1 = (1.015) − 1 = 0.061363551 1.06136355125 − 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 ) − 1 = (1.005) − 1 = 0.061677812 Then 66 years, 1.06136355125 − 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: –12,598.41 Number of compoundings per year 1 = = 0.25 Number of payments per year 4 i2 = (1 + i ) c − 1 = (1.065 ) 0.25 – 1 = 0.015868285 1 − ( 1 + i ) − n PV = PMT a. i 1.015868285 −44 − 1 = $400 0.015868285 = $12,598.41 (1 + i ) n − 1 b. FV = PMT i 1.015868285 44 − 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: –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 − 1 = 1.00 6 – 1 = 0.040672622 1 − ( 1 + i ) − n a. PV = PMT i 1 − 1.040672622 −7 = $2750 0.040672622 = $16,464.70 (1 + i ) n − 1 1.040672622 7 − 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: −16,464.70 Same I/Y, P/Y, C/Y Same PMT, N, 0 PV CPT FV Ans: –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 ...
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This document was uploaded on 02/08/2014.

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