Time Value Of Money

problem 1:
Mark Greene invests $30,000 at 8% yearly interest leaving the funds invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Mark withdrew the accumulated get of silver. How much did Mark withdraw assuming that interest heighten semiannually?
share A: Table 6-1 commence B: 4% Part C: 16N

Part D: FV = PV(IF)
30000(1.87298)
56189.40
occupation 2:
Doug Ross is saving to live his own medical practice. He projects that he will get to have $500,000 in 5 years in order to get the business sour the ground. He has found an investment that will yield 12% interest compounded quarterly. How much will he need to invest today to have the amount he requires to start his practice?
Part A: Table 6-2 Part B: 3% Part C: 20N

Part D: PV = FV(IF)
500000(.55368)
276840
bother 3:
Elizabeth Corday is borrowing $20,000 at 11% over 6 years. She will make annual payments on the loan at the end of each year. How much are each of Elizabeths payments?
Part A: Table 6-4 Part B: 11% Part C: 6N

Part D: 20000 = R(4.23054)
4.23054 4.23054
R = 4727.



53

puzzle 4:
Derek downwind just received a sign bonus of $1,000,000. His plan is to invest this payment in a fund that will earn 6% compounded annually. If Lee plans to establish the DL Foundation once the fund grows to $1,898,000, how many a(prenominal) years until he can establish the foundation?
Part A: Table 6-1 Part B: 6% Part C: 11N

Part D: 1898000 = 1000000X
1000000 1000000
X = 1.898

Problem 5:
James Kirk has just inherited some money from a long lost relative. The inheritance is set up so that James will receive $20,000 per year for the beside 25 years starting TODAY. How much is James inheritance worth on the date of the inheritance assuming that the money has...If you want to get a full essay, order it on our website: Orderessay



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