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CHAPTER 5 B-63
20. To answer this question, we can use either the FV or the PV formula. Both will give the same answer
since they are the inverse of each other. We will use the FV formula, that is:
FV = PV(1 + r)t
Solving for t, we get:
So, the money must be invested for 19.31 years. However, you will not receive the money for
another two years. From now, you’ll wait:
Calculator Solutions
1.
Enter 10 8% $5,000
N I/Y PV PMT FV
2.
Enter 11 10% $2,250
N I/Y PV PMT FV
Enter 7 8% $8,752
N I/Y PV PMT FV
Enter 14 17% $76,355
N I/Y PV PMT FV
Enter 8 7% $183,796
N I/Y PV PMT FV
3.
Enter 6 7% $15,451
N I/Y PV PMT FV
B-64 SOLUTIONS
Enter 7 13% $51,557
N I/Y PV PMT FV
Enter 23 14% $886,073
N I/Y PV PMT FV
Enter 18 9% $550,164
N I/Y PV PMT FV
4.
Enter 2 $240
$297
N I/Y PV PMT FV
Enter 10 $360
$1,080
N I/Y PV PMT FV
Enter 15 $39,000
$185,382
N I/Y PV PMT FV
Enter 30 $38,261
$531,618
N I/Y PV PMT FV
5.
Enter 9% $560
$1,284
N I/Y PV PMT FV
Enter 10% $810
$4,341
N I/Y PV PMT FV
Enter 17% $18,400
$364,518
N I/Y PV PMT FV
CHAPTER 5 B-65
Enter 15% $21,500
$173,439
N I/Y PV PMT FV
6.
Enter 18 $55,000
$290,000
N I/Y PV PMT FV
7.
Enter 7% $1 $2
N I/Y PV PMT FV
Enter 7% $1 $4
N I/Y PV PMT FV
8.
Enter 7 $200,300
$314,600
N I/Y PV PMT FV
9.
Enter 5.30% $40,000
$170,000
N I/Y PV PMT FV
10.
Enter 20 7.4% $650,000,000
N I/Y PV PMT FV
11.
Enter 80 10% $1,000,000
N I/Y PV PMT FV
12.
Enter 105 4.50% $50
N I/Y PV PMT FV
B-66 SOLUTIONS
13.
Enter 112
$150 $1,260,000
N I/Y PV PMT FV
Enter 33 8.40% $1,260,000
N I/Y PV PMT FV
14.
Enter 113 $1 ±$43,125
N I/Y PV PMT FV
15.
Enter 4
$12,377,500 $10,311,500
N I/Y PV PMT FV
16. a.
Enter 30
$24,099 $100,000
N I/Y PV PMT FV
16. b.
Enter 12
$24,099 $38,260
N I/Y PV PMT FV
16. c.
Enter 18
$38,260 $100,000
N I/Y PV PMT FV
17.
Enter 9 12% $170,000
N I/Y PV PMT FV
18.
Enter 45 11% $4,000
N I/Y PV PMT FV
Solve for $438,120.97
Enter 35 11% $4,000
N I/Y PV PMT FV
Solve for $154,299.40
