Exerci for TVM
1. Simple interest versus compound interest. 1st Simpleton Bank pays 5% simple interest on its savings account balances, while 1st Complexity Bank pays 5% interest compounded annually. If you made a ￡10000 deposit in each bank, how much additional money would you earn from your 1st Complexity Bank account at the end of 12 years?
￡10000*(S/P,5%,12)=￡10000*1.7959=￡17959
￡10000*(1+5%*12)=￡16000英语表白句子
￡17959-￡16000=￡1959
2. Calculating future value: for each of the following, compute the future value:
Prent value | Years | Interest rate | Future value |
￡570 | 15 | 9% | ￡2076.22 |
￡8922 | 9 | 18% | ￡39573.12 |
￡61133 | 3 | 12% | ￡85887.46 付出的近义词 |
￡219850 | 10 | 4% | ￡325431.71 |
| | | |
3. Calculating prent value: for each of the following, compute the prent value.
Future value | Years | Interest rate | Prent value |
￡349 | 5 | 6% | ￡260.81 |
￡5227 | 20 | 淫悦假期2% | ￡3517.77 |
￡48950 | 12 | 25% | ￡3363.82 |
￡612511 | 7 | 33% | ￡83205.57 |
| | | |
4. What’s the value today of ￡1250 to be received 3 years from now, assuming a 12% discount rate.
￡1250*(P/S,12%,3)=￡1250*0.7118=￡889.75
5. What would be the prent value today of ￡1250 to be received 3 years from now, assuming a 12% discount rate and quarterly compounding.
￡1250*(P/S,12%/4,3*4)=￡1250*0.7014=￡876.75
6. How much will be in an account earning 10% at the end of 5 years if ￡100 is deposited today?
￡100*(S/P,10%,5)=￡微信添加好友100*1.6105=161.05
7. How much will be in an account earning 8% at the end of 5 years if ￡100 is deposited today, assuming quarterly compounding?
￡100*(S/P,8%/4,5*4)=￡100*1.4859=￡148.59
8. What is the prent value of a lump sum of ￡300 that will be paid at the end of the fifth year, assuming that the interest rate is 10%?
￡300*(P/S,10%,5)=￡300*1.6105=￡483.15
9. What is the future value after 5 years of ￡1000 that is placed in a saving s account today that pays interest quarterly, assuming an annual interest rate of 8%?
￡1000*(S/P,8%,5)=￡1000*1.4693=￡1469.3
10. What is the effective annual interest rate for an account that pays interest quarterly at the annual rate of 8%?
(1+8%/4)2-1=8.24%
11. What's the future value of a 5-year ordinary annuity with annual payment of ￡200, evaluated at a 15% interest rate?
￡200*(S/A,15%,5)=￡200*6.7424=￡1348.48
12. What's the prent value of a 5-year ordinary annuity with annual payment of ￡200, evaluated at a 15% interest rate?
￡200*(P/A,15%,5)=￡200*3.3522=￡670.44
13. Which amount is worth more at 14%, compounded annually: ￡1000 in hand today or￡2000 due in 6 years?
￡2000*(P/S,14%,6)=￡911.17
￡励志歌曲下载911.17<￡1000
14. Washington-Atlantic invests ￡4 million to clear a tract of land and to t out some young pine tree. The trees will mature in 10 years, at which time Washington-Atlantic plans to ll the forest at an expected price of ￡8 million. What is Washington-Atlantic expected rate of return?
￡4million*(S/P,i,10)=￡8million
i=1.07%
斗牛犬价格
15. Your broker offers to ll you a note for ￡13250 that will pay ￡2345.05 per year for 10 years at the end. If you buy the note, what interest rate will you be earning?
￡13250=￡2345.05*(P/A,i,10)
i=12%
16. A mortgage company offers to lend you ￡85000, the loans calls for payments of ￡82
73.59 per year for 30 years. What interest rate is the mortgage company charging you?
￡85000=￡8273.59*(P/A,i,30)
i=9%
17. To complete your last year in business school and then go through law school, you will need. ￡10000 per year for 4 years, starting next year (ie, you will need to withdraw the first ￡10000 one year from today). Your rich uncle offers to put you through school, and he will deposit in a bank paying 70h interest, compounding annually, a sum of money that is sufficient to provide the 4 payments of ￡10000 each. His deposit will be made today.
a. How large must the deposit be?
b. How much will be in the account immediately after you make the first withdrawal? After the last withdrawal?
a. ￡40000*(P/A,7%,4)=￡33872
b. first=￡33872*(1+7%)-￡10000=预习琥珀￡26243.04
last=0
18. While you were a student in college, you borrowed ￡12000 in student loans at an interest rate of 9%, compounding annually. If you repay ￡1500 per year, how
巨蟹座日期long, to the nearest year, will it take you Lu repay the loan?
(P/A,9%,n)=￡12000/￡1500=8
n=15
19. You need to accumulate ￡10000. To do so, you plan to make deposits of ￡1250 per year, with the first payment being made a year from today, in a bank account which pays 12% interest, compounded annually. You last deposit will be less than ￡1250 if less is needed to round out to ￡10000. How many years will it take you to reach your ￡10000 goal, and how large will the last deposit be ?
