Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
20. The time line is:
0 2 ?
–
$10,00
0
$60,000
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:
t = ln(FV/PV)/ln(1 + r)
So, the money must be invested for 20.79 years. However, you will not receive the money for
another two years. From now, you’ll wait:
Calculator Solutions
1.
Enter 8 9% $7,500
N I/Y PV PMT FV
Solve for $14,944.22
2.
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
3.
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
4.
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
5.
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
6.
N I/Y PV PMT FV
7.
N I/Y PV PMT FV
N I/Y PV PMT FV
8.
N I/Y PV PMT FV
9.
N I/Y PV PMT FV
10.
N I/Y PV PMT FV
11.
N I/Y PV PMT FV
12.
N I/Y PV PMT FV
13.
N I/Y PV PMT FV
N I/Y PV PMT FV
14.
N I/Y PV PMT FV
15.
N I/Y PV PMT FV
N I/Y PV PMT FV
N I/Y PV PMT FV
16. a.
N I/Y PV PMT FV
b.
N I/Y PV PMT FV
c.
N I/Y PV PMT FV
17.
N I/Y PV PMT FV
18.
N I/Y PV PMT FV
N I/Y PV PMT FV
19.
N I/Y PV PMT FV
20.
N I/Y PV PMT FV
