c

M {




FVA = (2500 x FVIFA 1%, 10) (1+0,01) = (2500 x 10.462) (1.01) = a t


 
10 years 10 x 3= 30 period
FV= 26416,55 x FVIF 1%,30 = 26416,55 x 1,3478 = -


7 years = 7x2=14 periods

FV = PV x FVIF3% , 10 PV = $5059,90 = FVA ( at t = 4 )
FVA = A x FVIFA 3% , 4 5059,90 = A x 4,1836




cM








 

 
 

-1 = 0.04 = %4

-1 = 0.05 = %5

Bank B offers the better return on our money.If we deposit $1000 in Bank A for one
year, we will have $1040 at the end of the year. If we deposit $1000 in Bank B for one year,
we will have $1050 at the end of the year,providing the better return on our savings.


Car Price = $ 40.000

Inflation Rate = 2% (Annually)

Car price after 3 years later : $ 40.000 (1+0,02)3 = $ 42.448,32

Fathers Gift : $ 3.000 (1 + 0,02)4 = $ 3.247,2
$ 42.448,32 - $ 3.247,2 = -
 


[(1+0,02)6 1]/ 0,02 = 


39.201,12 / 6,3081 = -