Time Value Of Money

Week 4 Assignment Time Value of amber Marshall, McManus & Viele Text Chapter 6, Problems P6-26, a,b,c,d (p 224-225) What is the sit value of nine yearbook spot payments of $4,000, to be paid at the end of each stage using an bet rate of 6%? $4,000 x 6.8017 = $27,206.8 What is the concord up value of $15,000 to be paid at the end of 20 years , using an refer rate of 18%? $15,000 x .0365 = $547.50 How much cash must be deposited in a savings account as a single follow in order to accumulate $300,000 at the end of 12 years, presume that the account leave 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, expect that the account will earn 12% interest? $50,000 x .4523 = $22,615 Sevilla & Somers Text Topic 6, Exploration, 8b (p118) 8b. Consider the formula P = 67.38 ãÆ'» (1.026)^t. If we permit P represent the population of Mexico in year t where t is the number of years from 1980, confirm that this formula gives the mistakable population values as those given in the set back in Example 6.5.

What would the population in 1990 have been if harvest-tide had go along 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 in! 1984 = 76.60/74.66 = 1.026 McConnell & Brue Chapter 8, Study Question 1 (P151) Why is economical harvest-festival beta? 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 trust to get a in force(p) essay, order it on our website: BestEssayCheap.com

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