Study Problem 5-1-cStudy Problem 5-3-aStudy Problem 5-18Study Problem 5-1-c•FV of $775 if invested for 12 years at 12% compounded annually?•FVn= PV(1 +i)n or•FV12= 775(1 + .12)12= $3,019.40or•775 +/- PV; 12 I/Y; 12 N; 0 PMT•CPT FV = 3,019.40Study Problem 5-3-a•At what rate would $500 have to be invested to grow to $1,948 in 12 years if interest is compounded annually?•500 +/- PV; 1,948 FV; 0 PMT; 12 N;•CPT I/Y = 12 %.Study Problem 5-18•Borrow from a finance company at 12% compounded monthly or from a bank at 13% compounded annually. Which is the better deal?•Solution: compare the future value of a common set of cash flows, say $100.•12% monthly -100+/- PV; 12/12 = 1 I/Y; 12 N; 0 PMT; CPT FV = 112.70•13% annually – 100 +/- PV; 13 I/Y; 1 N; CPT FV =
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