Four Recruitment and Retention Case Scenarios

MAT 101 SLP3 1. Given: PV = $1000, i = .02, t = 20 FV = PV (1 + it) = 1000

( 1 + (.02)(20)) = 1000 ( 1 + .40) = 1000 (1.40) = $1400.00 2. Given: PV =
$1000, i = .05, t = 20; PV = $1000, I = .10, t = 10 FV = PV (1 + it) = 1000 (1
+ (.05)(20)) = 1000 (1 + 1.00) = 1000 (2.00) = $2000.00, Option A FV = PV
(1 + it) = 1000 (1 + (.10)(10)) = 1000 (1 + 1.00) = 1000 (2.00) = $2000.00,
Option B No advantage noted in calculation given 10%/10 years renders
same results as 5%/20 years. The investment would be based on individual
budget discretion, however short-term future value for self would be Option
B if choice required. 3. Given compound formula, FV = PV (1 + ) ,
i = .02, t = 20, PV = $1000 FV = 1000 (1 + .02)20 = 1000 (1.02)20 = $
(NOTE: Use your scientific calculator to solve power of 20.) FV greater at
compound interest versus simple interest. 4. Given: PV = $1000, i = .02, t =
365 FV = 1000 (1 + .02)365 = 1000 (1.02)365 = $ (NOTE: Use your
scientific calculator to solve power of 365.) 5. Given: PV = $1000, i = .02, t
= 365x2; PV = $2000, i = .02, t = 365x2 or use successive approximation
FV = 1000 (1 + .02)3652 = 1000 (1.02)3652 = $ FV = 2000 (1 + .
02)3652 = 2000 (1.02)3652 = $ (NOTE: Use your scientific
calculator to solve power of 365x2. Review successive approximation
method.) REVIEW PRIOR TO SUBMISSION FOR TECHNIQUE
VERIFICATION USED TO SOLVE EQUATION.