A.

Different Cases Number of Years Interest Rate% PV FV EXP

Annually 2 12% 15,000 $18,816.00 $252.77

Quarterly 8 3% 15,000 $19,001.55
Monthly 24 1% 15,000 $19,046.02
Continuously 2 12% 15,000 $19,068.77 1.271251
B. Without continuous compounding rate in case of monthly payment we are getting
highest future value, however in continuous compunting rate we have 19.069$ when in
annually ordinary case we have 18.816$ for the end of two years. The model shows how
dramatically FV can be increased when we have paralel increase of compounding
continuous rate.

C. Highest amount we are getting in case of compiunding continuous rate 19.068$ which
shows that this method is mostly beneficial type of deposit. Which difference from
ordinary rate gives us 252.77$ more.
Case Number of Year Interest rate% Accumulated sum (FV) PMT (Payment)
A 3 12% 5,000 $1,481.74
B 20 7% 100,000 $2,439.29
C 8 10% 30,000 $2,623.32
D 12 8% 15,000 $790.43
Case Number of Year Interest Rate Principal Amount PMT
A 3 8% 12,000.00 $4,656.40
B 10 12% 60,000.00 $10,619.05
C 30 10% 75,000.00 $7,955.94
D 5 15% 4,000.00 $1,193.26
A. Number of Years Interest Rate PV PMT (annual payment)
3 13% 10000 $4,235.22
Payment
B. End of the Year PMT (Annual Payment) Interest Principal
1 $4,235.22 1,300.00 $2,935.22
2 $4,235.22 918.42 $3,316.80
3 $4,235.22 487.24 $3,747.98
Sum 2,705.66 $10,000.00
As chart shows total amount of interest payment is 2.705$ which decreases during the years. At the beginning
C.
principal amount increases time by tim
 Principal Liabilities at the beginning of Year Principal Liabilities at the end of Year
$ 10,000.00 $ 7,064.78
$ 7,064.78 $ 3,747.98
$ 3,747.98 $ -

he years. At the beginning it starts from 1.300 and at the end of third years becomes 487.24. Where
ount increases time by time.
 Cases
A
A.
B
C
Would be the same what
B.

The meaning of growth ra

Growth rates refer to the
specific time period. For in
compounded annualized r
dividends or even macro c
retail sales. The interest ra
C. assets expressed as a perc
include cash, consumer go
 Number of Year Present Value Future Value Interest Rate
4 500.00 800.00 12.47%
9 1,500.00 2,280.00 4.76%
6 2,500.00 2,900.00 2.50%
Would be the same what was in A above. A - 12.47%; B - 4.76%; C - 2.50%.

The meaning of growth rate and interest rate is the same. Meaning of
Growth rates refer to the percentage change of a specific variable within a
specific time period. For investors, growth rates typically represent the
compounded annualized rate of growth of a company's revenues, earnings,
dividends or even macro concepts, such as gross domestic product (GDP) and
retail sales. The interest rate is the amount a lender charges for the use of
assets expressed as a percentage of the principal. The assets borrowed could
include cash, consumer goods, or large assets such as a vehicle or building.
Annuity Number of Year PV (PMT) FV Interest Rate
10 2,000 10,606 18.155%
Case Initial Deposit Future Amount Interest Rate Number of Year
A 300.00 1,000.00 7% 17.79481014599
B 12,000.00 15,000.00 5% 4.573535570393
C 9,000.00 20,000.00 10% 8.3779896109433
D 100.00 500.00 9% 18.67580572045
E 7,500.00 30,000.00 15% 9.918968909281
Case Interest Amount Annual Cash Flow Rate of Return Number of Year
A 1,000.00 250.00 11% 5.555944903337
B 150,000.00 30,000.00 15% 9.918968909281
C 80,000.00 10,000.00 10% 16.88631703076
D 600.00 275.00 9% 2.536716641129
E 17,000.00 3,500.00 6% 5.912319612811