25 1 0015868285 1 1 i n pv pmt a i 1015868285

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Unformatted text preview: 1 = = (1.00875 ) 12 – 1 = 0.0537818867 1 − ( 1 + i ) − 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: −38,367.94 67 1 − 1.05378188 67 − 17 = $3500 0.05378188 67 = $38,367.94 (1 + i ) n − 1 b. FV = PMT i 1.05378188 6717 − 1 = $3500 0.05378188 67 = $93,482.61 68 Same I/Y, P/Y, C/Y Same PMT, N, 0 PV CPT FV Ans: –21,764.70 Business Mathematics in Canada, 7/e Exercise 10.5 (continued) % 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: −28,346.20 i2 = (1 + i ) c − 1 = (1.0175 ) 2 – 1 = 0.035306250 1 − ( 1 + i ) − 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: −20,035.79 1 − 1.035306250 −20 0.035306250 = $28,346.20 PV(today) = FV (1 + i 2 ) − d = $28,346.20 (1.035306250 ) −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 + / – PMT 0 FV CPT PV Ans: 17,977.076 = 0.3 i2 = (1 + i ) c − 1 = (1.0225 ) 0. 3 – 1 = 0.0074444427 1 − (1 + i ) − n 2 PV(2.75 yrs from now) = PMT i2 1 − 1.0074444427 −42 = $500 0.0074444427 = $17,977.076 PV (today) = PMT (1 + i2 ) − d = $17,977.076 (1.0074444427 ) −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 + / – FV CPT PV Ans: 14,074.16 Chapter 10: Ordinary Annuities: Future Value and Present Value 69 Exercise 10.5 (continued) % 17. Given: i = 92 = 4.5% a. FV = PV (1 + i ) = $5000 (1.045 ) n b. PMT = $900; i = i2 = (1 + i ) c − 1 9% 2 16 = $10,111.85 = 4.5%; n = 8; c = 2 = 2 1 = (1.045 ) 2 – 1 = 0.092025 (1 + i ) n − 1 FV = PMT i 1.092025 8 − 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: −9998.73 c. PMT = $400; i = 4.5%; n = 20; Number of compoundin gs per year 2 c= = = 0...
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