EX9.

FV = PV(1 + r)t

t = ln(FV / PV) / ln(1 + r)= ln(225.000/45.000)/ln(1+4.8%)= 34.3 (years)

EX10.

PV = FV / (1 + r)t

PV= 475/ (1 + 6.1%)20

PV= $145.34 million

EX12.

FV = PV(1 + r)t

= 50(1 + 4.3%)111

= 5352.15 silver dollars

EX13.

r = (FV / PV)1/t – 1

= (1.620.000/ 150)1/119 – 1

= 8.1%
If the winner’s prize increases at the same rate, the future value in 2040 is:

FV = PV(1 + r)t

= 150(1 + 8.1%)26

= $1136.47

EX14.

t = 2003 - 1999 = 4 years

r = ($10.311.500/12.377.500 )1/4 – 1

r = -0.0446

Therefore, his annual rate of return on this sculpture is -4.46%.

EX17.

PV = FV / (1 + r)t

= $225.000/ (1 + 12%)9

= $81137.26

EX18.

FV = PV(1 + r)t

= 5.000(1 + 10%)45

= $364452.42

If I wait 10 years before contributing:

FV = PV(1 + r)t

= 5.000(1 + 10%)35

= $140512.18