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a. FV=$1000*(1+0.1)5= $1610.

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b. 5% interest rate:
Year 0: FV= $1000*(1.05)0=$1000
Year 1: FV=$1000*(1.05)1=$1050
Year 2: FV=$1000*(1.05)2=$1102.50
Year 3: FV=$1000*(1.05)3=$1157.63
Year 4: FV=$1000*(1.05)4=$1215.51
Year 5: FV=$1000*(1.05)5=$1276.28
20% interest rate:
Year 0: FV= $1000*(1.20)0 =$1000
Year 1: FV=$1000*(1.20)1 =$1200
Year 2: FV=$1000*(1.20)2 =$1440
Year 3: FV=$1000*(1.20)3 =$1728
Year 3: FV=$1000*(1.20)4 =$2073.60
Year 3: FV=$1000*(1.20)5 =$2488.32
c. PV= $1000/ [1+(0.1/1)]5 =$620.92
d.r=(FV/PV)1/t -1= (2000/1000)1/5 -1=14.87%
e. FV=30000000*2=60000000
t= log (FV/PV)/log(1+r)
= log (60000000/30000000)/ log (1+0.02/1)
=35.00278878 years
f. PVOA = $1,000 (1-(1 + r)(t)/ r)
= $1,000(1- (1+0.15)(5) / 0.15)
= $3,352.16
FV=C[(1+r)t-1/r]
=$1000[(1+0.15)5 -1/0.15]
=$6742.38
g. If it is an annuity due, the PV and FV of the annuity
in (f) will change by multiplying by (1+(r/n))
PVAD = $3,352.16 (1+0.15) = $3854.98
FVAD = $6,742.38 (1+0.15) = $7753.74
h.PV= FV /(1/r/n)(t)(n)
=$1000 / (1+0.1/2)(5)(2)
=$1628.89
FV= PV (1+r/ n)(t)(n)
=$1000 (1+0.1/2) ^ (5*2)
=$613.91
I. Ordinary annuity payments
PMT= [ PV * (r/n)] / [1-[(1+r/n)(-t)(n)]
= [ $1000 * (0.08/1)] / [1- [(1+0.08/1) (-10)(1)]
= ($1000*(0.08)) / (1 - 0.4631935)
=80 / 0.5368065
= $ 149.03
Annuity due payment = $149.03/ (1+ 0.08/1)
= $149.03/ (1.08)
= $149.03/ (1.08)
= $137.99
j. PV = FV1/(1+r)1 + FV2/(1+r)2 + FV3/(1+r)3
= 100/ (1+0.08) + 200/ (1+0.08)2 + 400/(1+r)3
= $581.59
FV = PV1(1+r)2 + PV2(1+r)1 + PV3
= 100(1+0,08)2 + 200(1+0,08) + 400
=$732.64

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