**Unformatted text preview: **ˆ’ 1 = = (1.00875 ) 12 â€“ 1 = 0.0537818867
1 âˆ’ ( 1 + i ) âˆ’ n a. PV = PMT i Chapter 10: Ordinary Annuities: Future Value and Present Value 5.25 I/Y P/Y 1 ENTER C/Y 12 ENTER 17 N 3500 PMT
0 FV CPT PV Ans: âˆ’38,367.94
67 1 âˆ’ 1.05378188 67 âˆ’ 17
= $3500 0.05378188 67 = $38,367.94 (1 + i ) n âˆ’ 1 b. FV = PMT i 1.05378188 6717 âˆ’ 1 = $3500 0.05378188 67 = $93,482.61 68 Same I/Y, P/Y, C/Y
Same PMT, N,
0 PV CPT FV Ans: â€“21,764.70 Business Mathematics in Canada, 7/e Exercise 10.5 (continued)
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13. Given: i = 74 = 1.75%; n = 2(10) = 20; c =
PMT = $2000; d = 2(5) = 10 4
2 = 2; 7 I/Y P/Y 2 ENTER C/Y 4 ENTER 20 N 2000 PMT
0 FV CPT PV Ans: âˆ’28,346.20 i2 = (1 + i ) c âˆ’ 1 = (1.0175 ) 2 â€“ 1 = 0.035306250
1 âˆ’ ( 1 + i ) âˆ’ n 2
PV ( 5 yrs from now) = PMT i2 = $2000 Same I/Y, P/Y, C/Y
10 N 0 PMT
28346.20 FV CPT PV Ans: âˆ’20,035.79
1 âˆ’ 1.035306250 âˆ’20 0.035306250 = $28,346.20
PV(today) = FV (1 + i 2 ) âˆ’ d = $28,346.20 (1.035306250 ) âˆ’10
= $20,035.79 15. Given: PMT = $500; i = 9%
4 = 2.25%; n = 12(3.5) = 42; d = 12(2.75) = 33; c = 4
12 9 I/Y P/Y 12 ENTER C/Y 4 ENTER 42 N 500 + / â€“ PMT
0 FV CPT PV Ans: 17,977.076 = 0.3 i2 = (1 + i ) c âˆ’ 1 = (1.0225 ) 0. 3 â€“ 1 = 0.0074444427
1 âˆ’ (1 + i ) âˆ’ n 2 PV(2.75 yrs from now) = PMT i2 1 âˆ’ 1.0074444427 âˆ’42
= $500 0.0074444427 = $17,977.076
PV (today) = PMT (1 + i2 ) âˆ’ d = $17,977.076 (1.0074444427 ) âˆ’33
= $14,074.16
The original loan was for $14,074.16. Same I/Y, P/Y, C/Y
33 N 0 PMT
17977.076 + / â€“ FV CPT PV Ans: 14,074.16 Chapter 10: Ordinary Annuities: Future Value and Present Value 69 Exercise 10.5 (continued)
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17. Given: i = 92 = 4.5% a. FV = PV (1 + i ) = $5000 (1.045 )
n b. PMT = $900; i =
i2 = (1 + i ) c âˆ’ 1 9%
2 16 = $10,111.85 = 4.5%; n = 8; c = 2 = 2
1 = (1.045 ) 2 â€“ 1
= 0.092025 (1 + i ) n âˆ’ 1
FV = PMT i 1.092025 8 âˆ’ 1 = $900 0.092025 = $9998.73 Same I/Y P/Y 1 ENTER C/Y 2 ENTER 8 N 0 PV 900 PMT
CPT FV Ans: âˆ’9998.73 c. PMT = $400; i = 4.5%; n = 20;
Number of compoundin gs per year
2
c=
=
= 0...

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