49 using formula 9 2 to calculate d 3568349 fv ln ln

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Unformatted text preview: : −32,012.21 Same I/Y, P/Y, C/Y 19665 + / – PV 0 PMT 32012.21 FV CPT N Ans: 21.00 Exercise 10.5 (continued) % 41. For the first 7 years, i = 84 = 2%, PMT = $3000, n = 1(7) = 7, c = 4 = 4, and 1 i2 = (1 + i ) c − 1 = (1.02) 4 – 1 = 0.082432160 Amount in the RRSP after 7 years will be 1.08243216 7 − 1 FV = $3000 0.08243216 = $26,968.51 For the next 5 years, PMT = $500, i = n = 12(5) = 60, c = 4 12 8% 4 = 2%, = 0. 3 , and i2 = (1 + i ) c − 1 = (1.02) 0. 3 – 1 = 0.0066227096 Amount in the RRSP after 12 years will be (1 + i ) n − 1 n PMT FV = PV (1 + i ) + i 1.0066227096 60 − 1 = $26,968.51 (1.02) 20 + $500 0.0066227096 = $76,761.75 For the last 13 years, PMT = $500, n = 12(13) = 156, % i = 72 = 3.5%, c = 12 = 0.1 6 , and 2 78 8 I/Y P/Y 1 ENTER C/Y 4 ENTER 7 N 0 PV 3000 + / – PMT CPT FV Ans: 26,968.51 8 I/Y P/Y 12 ENTER C/Y 4 ENTER 60 N 26968.51 + / – PV 500 + / – PMT CPT FV Ans: 76,761.75 Same P/Y, PMT 7 I/Y C/Y 2 ENTER i2 = (1 + i ) c − 1 = (1.035 ) 0.1 6 – 1 = 0.00575003948 156 N 76761.75 + / – PV Business Mathematics in Canada, 7/e CPT FV Ans: 313,490.72 Amount in the RRSP after 25 years will be (1 + i ) n − 1 FV = PV (1 + i ) n + PMT i 156 − 1 26 + $500 1.0057500394 8 = $76,761.75 (1.035 ) 0.0057500394 8 = $313,490.72 Chapter 10: Ordinary Annuities: Future Value and Present Value 79...
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