п»їWeek 2 Home work
Chapter 3: Problem 3-1, 3-2
P3-1. If you have $1, 500 to take a position today by 7% curiosity compounded every year. a. Simply how much will you have got accumulated in the account by the end of the subsequent number of years? 1 . 3 years -$1, 500 PHOTOVOLTAIC
3 And
six I/P
CPT
FV=$1, 837. 56
2 . 6 years-$1, 500 PV
6 In
7 I/P
CPT
FV=$2, 251. 10
several. 9 years-$1, 500 PHOTO VOLTAIC
9 N
six I/P
CPT
FV=$2, 757. 69
4.
w. Use your findings simply (a) to calculate the quantity of interest earned in 1 ) Year you =$105 in interest
2 . Year a couple of =$112. thirty-five
3. Yr 3 =$120. 21
-$1, 500 PV-$1, 500 PV-$1, 500 PHOTOVOLTAIC
3 And 2 In 1 D
7 I/P 7 I/P 7 I/P
CPTCPTCPT
FV=$1, 837. 56FV=$1, 717. 35FV=$1, 605. 00
4. Season 4 sama dengan $128. 63
5. Year 5 = $137. sixty four
6. 12 months 6 =$147. 27
-$1, 500 PV-$1, 500 PV-$1, 500 PHOTOVOLTAIC
6 And 5 In 4 D
7 I/P 7 I/P 7 I/P
CPTCPTCPT
FV=$2, 251. 10FV=$2, 103. 83FV=$1, 966. 19
7. Yr 7 = $157. 57
8. 12 months 8 =$168. 61
9. Year 9 =$180. 41
-$1, 500 PV-$1, 500 PV-$1, five-hundred PV
being unfaithful N almost eight N 7 N
several I/P several I/P several I/P
CPTCPTCPT
FV=$2, 757. 69FV=$2, 577. 28FV=$2, 408ps. 67
c. Compare and contrast the findings in part (b). Make clear why the amount of interest attained increases in each succeeding three season period. Interest increases with each making it year as a result of compound interest. Interest is accrued about both the first principle and on the interest gained in past periods. P3-2. Dixon Shuttleworth has a significant sum of money that he would like to invest to finance his retirement. This individual has been offered three options. The initially investment gives a 5% return to get first five years, a 10% go back for the next five years, and a 20% return thereafter. The second investment offers 10% for the first 10...
