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    Tutorial Solutions - Chapter 5

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    alisha Harding
    The document contains 15 questions with input and output areas related to calculating future and present values using simple and compound interest formulas. A variety of interest rates, time periods, and dollar amounts are provided in the input areas and corresponding future and present values are displayed in the output areas based on the compound interest calculation. The questions cover topics such as the difference between simple and compound interest, using formulas to calculate interest rates or time periods, and applying the compound interest calculation over multiple time periods.

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    Tutorial Solutions - Chapter 5

    Uploaded by

    alisha Harding
    40 views13 pages
    The document contains 15 questions with input and output areas related to calculating future and present values using simple and compound interest formulas. A variety of interest rates, time periods, and dollar amounts are provided in the input areas and corresponding future and present values are displayed in the output areas based on the compound interest calculation. The questions cover topics such as the difference between simple and compound interest, using formulas to calculate interest rates or time periods, and applying the compound interest calculation over multiple time periods.

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    Tutorial solutions - Chapter 5 (3)

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    The document contains 15 questions with input and output areas related to calculating future and present values using simple and compound interest formulas. A variety of interest rates, time periods, and dollar amounts are provided in the input areas and corresponding future and present values are displayed in the output areas based on the compound interest calculation. The questions cover topics such as the difference between simple and compound interest, using formulas to calculate interest rates or time periods, and applying the compound interest calculation over multiple time periods.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    40 views13 pages

    Tutorial Solutions - Chapter 5

    Uploaded by

    alisha Harding
    The document contains 15 questions with input and output areas related to calculating future and present values using simple and compound interest formulas. A variety of interest rates, time periods, and dollar amounts are provided in the input areas and corresponding future and present values are displayed in the output areas based on the compound interest calculation. The questions cover topics such as the difference between simple and compound interest, using formulas to calculate interest rates or time periods, and applying the compound interest calculation over multiple time periods.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 13

    Chapter 5

    Question 1

    Input area:

    Interest rate 7%
    Deposit $ 6,000
    # of years 9

    Output area:

    Simple interest
    per year $ 420.00
    Total simple interest $ 3,780.00

    FV with simple interest $ 9,780.00

    Compound interest $11,030.76

    Difference $ 1,250.76
    Chapter 5
    Question 2

    Input area: Output area:

    Present value Years Interest rate Future value


    $ 2,250 11 13% $ 8,630.69
    $ 8,752 7 9% $ 15,999.00
    $ 76,355 14 12% $ 373,155.46
    $ 183,796 8 6% $ 292,942.90
    Chapter 5
    Question 3

    Output area: Input area:

    Present value Years Interest rate Future value


    $ 6,411.62 13 7% $ 15,451
    $ 31,620.87 4 13% $ 51,557
    $ 19,825.71 29 14% $ 886,073
    $ 17,515.89 40 9% $ 550,164
    Chapter 5
    Question 4

    Input area: Output area:

    Present value Years Interest rate Future value


    $ 240 4 5.47% $ 297
    360 18 6.29% 1,080
    39,000 19 8.55% 185,382
    38,261 25 11.10% 531,618
    Chapter 5
    Question 5

    Input area: Output area:

    Present value Years Interest rate Future value


    $ 560 10.54 9% $ 1,389
    810 8.50 10% 1,821
    18,400 17.56 17% 289,715
    21,500 21.44 15% 430,258
    Chapter 5
    Question 6

    Input area: Output area:

    Present value Years Interest rate Future value Formula:


    $ 65,000 18 8.87% $ 300,000 r = (FV / PV)1/t – 1

    Calculator:
    N = 18
    PV = -65,000
    FV = 300,000
    CPT I/Y
    Chapter 5
    Question 7

    Input area: Output area:

    Present value Years Interest rate Future value Formula:


    $ 1.00 11.01 6.50% $ 2.00 t = ln(FV / PV) / ln(1 + r)
    1.00 22.01 6.50% 4.00

    Rule 72?
    Chapter 5
    Question 8

    Input area: Output area:

    Present value Years Interest rate Future value


    $ 200,300 10 3.53% $ 283,400
    Chapter 5
    Question 9

    Input area: Output area:

    Present value Years Interest rate Future value


    $ 40,000 33.23 4.80% $ 190,000
    Chapter 5
    Question 10

    Output area: Input area:

    Present value Years Interest rate Future value


    $154,256,257.63 20 6.80% $ 575,000,000
    Chapter 5
    Question 11

    Output area: Input area:

    Present value Years Interest rate Future value


    $ 1,013.63 80 9.0% $ 1,000,000
    Chapter 5
    Question 13

    Input area: Output area:

    Present value Years Interest rate Future value


    $ 150 115 8.24% $ 1,350,000

    Present value Years Interest rate Future value


    $ 1,350,000 30 8.24% $ 14,520,022.06
    Chapter 5
    Question 15

    Input area: Output area:

    Present value Years Interest rate Future value


    $ 12,377,500 4 -4.46% $ 10,311,500

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