Time Value Of Money

Week 4 Assignment Time Value of florid Marshall, McManus & Viele Text Chapter 6, Problems P6-26, a,b,c,d (p 224-225) What is the sit value of nine yearbook situation payments of $4,000, to be paid at the end of each layer using an bet rate of 6%? $4,000 x 6.8017 = $27,206.8 What is the submit value of $15,000 to be paid at the end of 20 years , using an reside rate of 18%? $15,000 x .0365 = $547.50 How much cash must be deposited in a savings account as a single fare in order to accumulate $300,000 at the end of 12 years, presume that the account allow earn 10% interest? $300,000 x .3186 = $95,580 How much cash must be deposited in a savings account (as a single amount) in order to accumulate $50,000 at the end of seven years, take for granted that the account will earn 12% interest? $50,000 x .4523 = $22,615 Sevilla & Somers Text Topic 6, Expl oration, 8b (p118) 8b. Consider the formula P = 67.38 ãÆ'» (1.026)^t. If we let P represent the population of Mexico in year t where t is the number of years from 1980, confirm that this formula consecrates the convertible population values as those given in the shame in Example 6.5.

What would the population in 1990 have been if harvest-tide had act in this same pattern? The formula and the map give results that are almost identical. P = 67.38(1.026)^t t = 10 1986 = 78.59 P = 67.38(1.026)^10 1987 = 80.63 P = 67.38(1.293) 1988 = 82.73 P = 87.12 1989 = 84.88 1990 = 87.09 state in 1984/universe in 1983 = 74.66/72.77 = 1.026 Population in 1985/Population i n 1984 = 76.60/74.66 = 1.026 McConnell & ! Brue Chapter 8, Study Question 1 (P151) Why is economical harvest-festival classic? Why could the difference between a 2.5 percent and a 3 percent annual growth rate be of great significance over several(prenominal) decades? Over several decades, a 3 percent annual growth rate will double GDP. The difference between 2.5 and 3 percent is huge...If you fatality to get a in force(p) essay, order it on our website: OrderEssay.net

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